Vaughn Palmer: Legal groundwork for money laundering inquiry starting to take shape
Credit to Author: Stephen Snelgrove| Date: Thu, 26 Sep 2019 05:15:28 +0000
VICTORIA — Back in the days when Attorney General David Eby was still expressing doubt about the need for a public inquiry into money laundering, one of his concerns was that “people lawyer up.”
Well the lawyering up got underway in earnest this week, when B.C. Supreme Court Justice Austin Cullen — four months into his term as inquiry commissioner — granted official standing to 16 participants.
“It is anticipated that the rules of procedure will provide participants a number of procedural rights,” said the official notification from the commission.
“These may include: being self-represented or represented by counsel at the public hearings; making an opening statement; proposing witnesses to be called by commission counsel; applying to participate in the evidentiary hearings; reviewing documents; and making submissions.”
Cullen granted standing to the federal government, the provincial finance ministry, the gaming enforcement branch and the B.C. Lottery Corporation. All will have legal representation at public expense.
Also getting standing — and paying their own counsel presumably — were three organizations representing lawyers, the notaries, two public interest groups, the government employees union, two casino operators, the gaming industry association and a lone individual.
The commissioner judged how much each participant could contribute to the inquiry, their stake in the proceedings, and considerations of fairness.
He held off definitive findings “on whether or how any applicant’s rights or interests may be affected by the findings,” leaving it to the would-be participants themselves to raise that in their applications.
Several did so.
LISTEN: B.C. wins in court against Alberta on pipelines, mayors are furious at government’s clawback of a rural support fund, the public inquiry into money laundering starts to take shape, teen vaping becomes a B.C. health issue, and civic politicians play speed dating with government ministers at UBCM. Mike Smyth and Rob Shaw break down a busy week in B.C. politics.
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Great Canadian Casinos, which operates one-quarter of the gambling facilities in B.C., acknowledged “that it is possible it may be the subject of an adverse finding.” Cullen agreed and granted standing.
There was also a plaintive application from Robert Kroeker, a former official with Great Canadian Casinos as well as the B.C. Lottery Corporation and the civil forfeiture office.
He claimed to be able to provide information about “errors and inaccuracies” in one of the reports produced by Peter German, the money-laundering expert retained by Eby.
He also submitted “that he has been the subject of reproaches and complaints in the media and has information to provide in response.”
The commissioner acknowledged that “Mr. Kroeker’s legal, reputational and privacy interests may be affected by the findings of the commission in respect of his acts and omissions in the gaming and horse racing industry.”
Thus Kroeker became the only individual granted standing in the initial go-round.
But the commissioner reserved decision on applications from four others, pending an oral hearing open to the public. The four include BCLC vice-president Brad Desmarais and BCLC president Jim Lightbody, who is currently on medical leave.
In granting standing to BMW Canada to address money laundering in the luxury car sector, the commissioner observed the company was in a unique position.
“At this time BMW is the only luxury vehicle manufacturer, seller and financer who has applied for standing as a participant at this inquiry,” wrote Cullen. “If additional luxury vehicle manufacturers, sellers and financers apply to participate at a later date, it may be advisable that they do so as a single participant with BMW.”
Given all the talk of the impact on money laundering on the housing market, I was surprised that he got no applications from the real estate sector.
But those players could be called as witnesses, as could many officials and politicians, current and former.
Witnesses, cooperative or otherwise, “will be entitled to be represented by counsel when they testify.”
In anticipation of the proverbial roomful of lawyers experienced at other public inquiries, Cullen tried to put some checks on the opportunities for billable hours.
He limited 11 of the 16 participants to specific topics of involvement. Only the finance ministry, the Canadian government, the civil liberties association, and two of the legal organizations were given “broad standing.”
He cautioned that he is prepared to use his powers to rein in any freewheeling counsel.
“Participants must not create an undue burden on the process by, for example, subjecting witnesses to multiple repetitive lines of questioning or raising repetitive arguments,” wrote Cullen. “The commissioner retains the discretion to vary a participant’s participation or rescind standing.” Ahem.
Nor should the public expect any grandstanding by the senior counsel to the commission, Brock Martland and Patrick McGowan.
“This is an inquiry, not an adversarial process with traditional parties or litigants. Commission counsel have the primary role in representing the public interest and ensuring that matters that bear upon the public interest are brought to the commission’s attention.”
Cullen intends to go on the road this fall to ask the public and local officials what they expect from the money laundering inquiry.
Formal hearings are expected to commence next spring and continue into the fall. If that sounds like leisurely pace, it isn’t.
“The terms of reference task the commission with considering a broad array of issues addressing multiple economic sectors of concern to many agencies, organizations, and members of the public,” wrote Cullen. “As a result, it is necessary for this commission to hear from a wide range of voices.”
The New Democrats also want an interim report a little over a year from now and a final report in the spring of 2021, before the scheduled fall election.
But given the broad brush nature of the assignment, and even with the best of intentions, Cullen will be challenged to meet those deadlines.
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