BCSC Eron figure Chambers allegedly ordered drug hit
B.C. Securities Commission *BCSC
Monday October 28 2002 Street Wire
by Brent Mudry
Controversial former Vancouver lawyer Martin Chambers, an alleged drug money
launderer and Hells Angels associate, will not be getting out of jail any time
soon, if American officials get their way. Mr. Chambers, 62, was recently
denied bail by a Miami judge, based partly on top-secret information presented
by the RCMP and the FBI which remains sealed under court order.
The evidence included revelations that the RCMP, and presumably the Organized
Crime Agency of British Columbia, believe Mr. Chambers ordered a hit on a
significant narcotics figure. This is the first time these allegations have
been made public. Mr. Chambers has never been charged with such a crime, and
he remains presumed innocent until proven guilty of something.
Despite vigorous challenges by defence counsel Gerald Houlihan, United States
District Court Judge Ursula Ungaro-Benages of the Southern District of Florida
in Miami supported the bid by Assistant United States Attorney Richard Hong to
keep Mr. Chambers in custody and to reverse an earlier decision ordering him
released on bail. Even a series of flattering character reference letters by
Mr. Chambers's Vancouver supporters, including his long-time lawyer David
Lunny, did little to persuade the judge to grant bail.
Mr. Chambers was arrested Aug. 14 at the St. Louis, Miss., airport, on a
layover en route from Vancouver to Fort Lauderdale, as part of Operation
Bermuda Short, a joint FBI-RCMP undercover sting which snared 60 penny stock
players, including 20 Canadians, for either conspiring to bribe a dirty fund
manager or conspiring to launder drug money for the Colombian Cali cocaine
cartel.
Mr. Chambers has not yet entered a formal plea. Despite his arrest two months
ago, his arraignment has been delayed several times and is now set for
Thursday. He faces a maximum sentence of 20 years based on his Florida money
laundering charges and a prison term of more than 10 years under federal
sentencing guidelines.
A senior Miami prosecutor and a veteran Vancouver RCMP officer told the judge
Sept. 30 that Mr. Chambers is believed associated with two organizations of
entrepreneurial motorcycle enthusiasts: the Hells Angels and the former
Satan's Angels; he was involved in recent threats against co-defendants; and
he may have personal knowledge of several Angels murders in recent years.
Offshore accountant Michael Hepburn, a Bermuda Short co-defendant, is believed
to be the target of a conspiracy to be "bumped" off. RCMP Sergeant Michael
Arnold testified that investigators in Vancouver "picked up a specific threat
on a co-defendant coming from Chambers and with links to the Hells Angels."
"As a danger to the community, the government has made an ex parte submission
consisting mainly of reports of law enforcement reflecting that the defendant
is believed to have made a credible threat against a person with a
relationship to this case who the defendant believes to be co-operating with
law enforcement, and that the defendant is suspected in Canada of having
arranged the contract killing of an individual in connection with a
large-scale narcotics importation," states United States District Court Judge
Ursula Ungaro-Benages of the Southern District of Florida in Miami, in a brief
written decision denying bail.
"While this evidence certainly is powerful, the undersigned remains
unconvinced that the government has shown by clear and convincing evidence
that the defendant is a danger to the community, particularly since the
defendant has not had an opportunity to review and contest the matters
contained in the reports. Further, among other problems, defence counsel
proferred at the hearing that co-defendant Hepburn's attorney and Hepburn did
not perceive the defendant to be dangerous."
In a carefully worded decision designed to withstand appeal, Judge
Ungaro-Benages denied Mr. Chambers bail based mainly on flight risk, not
danger to the public. The Oct. 16 decision came the same day the judge denied
Mr. Chambers's bid to see the top-secret file against him, which was presented
to the judge in an ex parte chambers hearing. (The decisions also marked the
end of Mr. Chambers's second month in jail, equal to the entire time he spent
in custody during his nine-year cocaine conspiracy odyssey in Canadian courts,
which ended in 1990.)
The hearing was held on an ex parte basis, without the presence of Mr.
Chambers or his counsel, due to the highly sensitive nature of the
information. It is believed that public release of the RCMP intelligence
information could potentially jeopardize current investigations, prosecutions,
undercover agents and informants.
The Chambers file is so sensitive that the judge refused to release even a
redacted, or censored, version of the documents, eliminating the identities of
parties but disclosing the gist of the information provided. "This type of
redaction is routinely done in most cases, even cases involving nations
security and 'classified' documents," stated defence lawyer Mr. Houlihan.
The judge was not persuaded to release either Mr. Chambers or his secret file,
edited or otherwise.
"The weight of evidence against the defendant is strong and substantial. The
United States has proffered audiotapes on which the defendant can be heard
discussing the details of the scheme and the defendant's role in the scheme.
The audiotapes reflect that the defendant 'laundered' $700,000 and was
prepared to launder up to $26-million per year," states Judge Ungaro-Benages.
(All figures are in U.S. dollars unless otherwise noted.)
The judge notes that Mr. Chambers has no ties to the U.S., any extradition
waiver would likely be worth little more than the paper it is printed on, and
surveillance tapes record him discussing false identity documents and his
ability to flee. "The government has shown further that the defendant's
conduct in the St. Louis airport immediately prior to his arrest was
suggestive of an intent to avoid apprehension," states Judge Ungaro-Benages.
The judge notes that while Mr. Chambers disclosed to the court that he has
"substantial assets," the prosecutor's ex parte submissions also revealed he
has other valuable assets. "Therefore, without a full accounting of the
defendants's financial resources, the undersigned is unable to determine what
amount or form of bond might reasonably assure the defendant's appearance,"
states the judge.
"In sum, the government has demonstrated a preponderance of the evidence that
no condition or combination of conditions is adequate to assure the appearance
of the defendant as required."
The judge's decision to refuse bail marks a stark contrast to the submissions
of defence counsel Mr. Houlihan, a respected Assistant United States Attorney
himself several decades ago, before he switched from prosecuting alleged
criminals to defending them.
In an unsuccessful motion to win release of the secret Chambers file, Mr.
Houlihan refuted allegations that his fine client is a danger to the
community. "We believe that these allegations are without merit. If they
exist, they cannot be credible since they run contrary to Mr. Chambers's
professional standing, his history, his conduct, his reputation and his entire
experience in Canada when faced with criminal charges," stated Mr. Houlihan.
"Also, because they are so far-fetched, we believe they must have been
instigated or encouraged by government either to keep Mr. Chambers in jail or
to be used to 'convince' and 'encourage' his co-defendants or witnesses to
testify against him in court. Moreover, we vigorously deny any knowledge of,
participation in or any encouragement of any such conduct by any person on
behalf of Mr. Chambers."
Mr. Houlihan presented his client Mr. Chambers as little more than the
innocent victim of a witch-hunt by Canadian authorities.
"The court should be reminded that the Canadian RCMP has a motive to retaliate
against Martin Chambers. This is especially true of the RCMP in British
Columbia. In essence, because of his almost religious opposition to the
unsubstantiated charges against him in Canada, and his relentless pursuit of
his innocence, Martin Chambers has become a notorious and infamous figure to
the RCMP in British Columbia."
(Bermuda Short was an ironic flashback to Mr. Chambers's cocaine saga, which
also centred a Miami-to-Vancouver connection. Mr. Chambers suffered the
ignominy of being dragged through the criminal courts for nine years as an
alleged key player in a conspiracy to import cocaine from Miami to Vancouver.
The former lawyer was charged in December, 1981, acquitted in 1983 after the
trial judge threw out most of the Crown's case, which consisted of extensive
intercepted conversations. Mr. Chambers was then ordered retried by the
Supreme Court of Canada, convicted in a second trial in 1987 and sentenced to
nine years. The Supreme Court of Canada threw out the second trial in 1990 and
ordered a third trial, which never took place as the Crown folded and finally
stayed the charges.)
"Over Crown opposition, he was routinely released on bail and allowed to
travel internationally. Moreover, he was ultimately acquitted of every charge.
In the end, when he prevailed in every aspect of his case, Canadian law
enforcement was left with a bitter taste, totally defeated in what proved to
be an enormously expensive and unsuccessful venture," stated Miami defence
lawyer Mr. Houlihan, a former respected federal prosecutor.
Mr. Houlihan argued that Mr. Chambers, through his "10-year fight to prove his
innocence" and otherwise, has shown himself to a be a "man of character and a
person who can be trusted to appear in court."
The former prosecutor claims his client, the alleged drug money launderer and
Hells Angels associate, is well known and "almost notorious" to Canadian law
enforcement authorities due to his "legendary fight against criminal charges
wrongfully levelled against him" in the previous cocaine conspiracy case. Mr.
Houlihan called his client's past ordeal "an infamous court battle."
Mr. Chambers was also given high praise by a number of Vancouver supporters,
including lawyer Mr. Lunny, a principal of Devlin Jensen, who has represented
him for several decades, including a threatened libel suit against Stockwatch.
"I first met Mr. Martin Chambers approximately 20 years ago in the course of a
complex real estate case. Since then I have acted on many occasions for him
and on behalf of several companies with which he has been associated. He has
also referred individuals and companies to me for the provision (sic) legal
services," states Mr. Lunny in a letter dated Sept. 3 and addressed to Mr.
Houlihan for the Miami bail hearing. (Mr. Lunny has practised law in B.C.
since being called to the bar in 1980, a year before his then future client
was charged in the Miami-to-Vancouver cocaine conspiracy.)
"Long before my acquaintanceship with him, Mr. Chambers had an established
reputation as a shrewd and successful solicitor and businessman. His status as
the accused in a cocaine case was highly publicized, as was his conviction and
his successful appeal."
Mr. Lunny then blamed the media for the controversial reputation of his
client. "Following his resignation from the Law Society and his exclusive
attention to business affairs, which are real and substantial, it is fair to
say that he came to be regarded over the years as a colourful and newsworthy
character, often, in my view portrayed unfairly by a highly critical media. I
am able to say this because in all my dealings with Mr. Chambers he has
conducted himself ethically, honourably and above-board."
The Vancouver lawyer also offered a personal perspective on the arrest of Mr.
Chambers in a takedown by plainsclothes FBI agents at the St. Louis airport.
(Mr. Chambers was arrested soon after leaving the terminal concourse and
taking a seat on a shuttle bus bench, showing little intent to make his
connecting flight to Fort Lauderdale, which was set to depart 10 minutes
later. During his 75-minute layover, Mr. Chambers was shadowed by an FBI
surveillance team as he made and received numerous calls on his multiple
cellphones.)
"Naturally, therefore, the news of his arrest in St. Louis on a
money-laundering charge was a tremendous shock to me. Earlier that same day,
we had discussed by telephone some issues relating to an ongoing real estate
tenancy dispute which I had been instructed to address, as simply one of
several ongoing commercial files on behalf of Mr. Chambers," stated Mr. Lunny.
"Progress on all of these files has now ground to a halt due to the inability
to obtain instructions. They stand in real jeopardy of being dismissed or
irreparably damaged unless he is permitted to return to attend to them."
According to Mr. Lunny, Mr. Chambers has quite an extensive portfolio of
properties, although the lawyer offered no specific details on any of his
famous client's assets.
"I have a general knowledge of the business interests of Mr. Chambers,
particularly in the real estate field. They are valuable and extensive and
range in nature from large commercial warehousing and dock facilities, hotel
interests, recreational island and wilderness properties to a fishing lodge on
the B.C. coast, to which he is passionately attached." Mr. Lunny also
described his client Mr. Chambers as an "avid mariner and a "fisherman of
great skill and experience."
"His continued absence is having a crippling effect on his business
interests."
Devlin Jensen felt so strongly about its star client Mr. Chambers that it sent
a second letter of reference, signed by lawyer Timothy Lack, who has known Mr.
Chambers for eight years and done real estate and commercial legal work for
him on "many occasions."
"Mr. Chambers is an active businessperson with many ventures here in British
Columbia. He is a detail person who manages those ventures at a most personal
level, and accordingly, those ventures are suffering in his absence," stated
Mr. Lack.
"I have met Martin's family on many occasions and have attended at their home
on numerous visits. While my visits are all work related, Martin often
politely suggests that I make these visits as he does not wish to miss time
with his young son Francis and his wife, Queenie. This is not a manufactured
display, but rather, it is Martin putting his wife and family ahead of all
other pursuits."
These letters, assembled by Howard Rubin, the Vancouver lawyer who also
defended Mr. Chambers during his lengthy Canadian cocaine odyssey, were faxed
to defence lawyer Mr. Houlihan in Miami on Sept. 5, the same day of an initial
bail hearing in front of U.S. Magistrate Judge Robert Dube.
Judge Dube subsequently set bail at $350,000, including a $100,000 corporate
surety bond and a $250,000 personal surety bond. Mr. Chambers needed only to
put up $15,000 cash, or 15 per cent of the corporate bond, with the $250,000
personal bond to be fully secured by property. Prosecutor Mr. Hong appealed
this bail and Mr. Chambers now remains in jail, at least until trial, which is
expected next year at the earliest.
Vancouver lawyer Mr. Rubin, like Miami lawyer Mr. Houlihan, was also a
respected prosecutor before he switched sides to defending alleged criminals.
Mr. Rubin made his name as a federal drug prosecutor in the mid-1970s,
prosecuting what was then the longest criminal proceeding in Canada, the
Bengert case.
The former prosecutor notes he actually turned down an offer to prosecute Mr.
Chambers in the Canadian cocaine case. "In the early 1980s I was approached
almost simultaneous by Martin Chambers, and the RCMP, in respect of his case.
I chose to defend Martin Chambers," he states in a court-filed affidavit.
Mr. Rubin also notes he has maintained business contacts with Mr. Chambers
since then, and he and his wife have often socialized with Mr. Chambers and
his second wife, Quing (Queenie) Zhang.
"His partners and associates in British Columbia are constantly phoning me for
decisions in commercial matters and they are at sea without direction from
him. Under all of those circumstances I believe that he is not a flight risk."
bmudry@stockwatch.com
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