'MERCHANT OF MISERY' FACES 10 YEARS IN PLEA DEAL

Jose Neves refused to let parole get in the way of his lavish
criminal lifestyle.

The Winnipeg nightclub owner with a taste for high-end homes,
high-priced cars and high-speed boats wasted no time getting back to
business following his early release from prison in 2004, quickly
re-establishing himself as one of the city's cocaine "kingpins."

But his world came crashing down, thanks to an old friend who had
secretly started working undercover for the police, arranging a series
of drug deals that were caught through video and audio surveillance in
2005.

Neves, 51, was re-arrested that fall and has been in jail since. Now,
under a joint-agreement from Crown and defence lawyers, he faces the
prospect of another 10 years behind bars in what would be one of the
stiffest drugs sentences in recent Manitoba history.

Queen's Bench Justice Don Bryk will decide this morning whether to
accept the plea bargain. He hinted Monday the proposed penalty might
not be harsh enough.

Neves was one of 13 people busted in Project Defence, which involved
career criminal Franco Atanasovic being paid more than $500,000 to
infiltrate local organized crime. Three full-patch Hells Angels
members were among those arrested. Only two people remain before the
courts, with the rest having been convicted.

Neves was tied to Asian organized crime out of British Columbia, court
was told. He was using a downtown Winnipeg apartment block as a
cocaine production and distribution site. Police found more than three
kilograms of the highly addictive drug during a raid in October, 2005.

Neves was also caught on camera doing three separate deals with
Atanasovic.

At the time of his crimes, Neves was out on parole for a prior drug
conviction. In 2000, Neves was sentenced to eight years in prison and
fined $32,000 after he was convicted of masterminding a scheme that
saw cocaine from Vancouver and Montreal being sold in Winnipeg.

"He got out and went right back to his life as a merchant of misery,"
Crown attorney Chris Mainella told court.

"He learned absolutely nothing from the prison experience, and played
the parole game well."

Neves, 51, lied to parole officials -- using his family in the process
- -- by claiming he'd broken off his criminal relationships and was
ready for a clean start as a local nightclub owner. He also fooled
authorities into thinking he was broke, when in reality he had plenty
of money hidden away to fuel his jet-set lifestyle, which included a
mansion in Charleswood, six expensive cars, motorcycles and a powerboat.

Neves also took his family on a trip to Europe in 2004 while passing
himself off as a "bankrupt parolee," Mainella said.

Bryk expressed surprise at the number of people who continue to
support Neves, as evidenced by several glowing letters of reference
provided to court.