KEY TEST OF ANTI-GANG LAW BRINGS ACQUITTAL

Judge Describes Evidence Against Hells Angel As 'Weak'

The first test case in B.C. of Canada's anti-gang law applied against
the Hells Angels ended in an acquittal Thursday, dealing a blow to
police and prosecutors who alleged the Hells Angels are a criminal
organization. While B.C. Supreme Court Justice Anne MacKenzie
convicted two alleged Hells Angels associates of cocaine trafficking,
it was her acquittal of a third man -- senior Hells Angels member
David Francis Giles -- that doomed the test case.

She said that since she couldn't find him guilty of possession of
cocaine for the purpose of trafficking, a second charge against him --
of possessing it for the benefit of a criminal organization -- had to
fail as well.

That finding put an end to the test case, to the disappointment of the
officer who headed the two-year $10-million police investigation
code-named Project E-Pandora.

"I'm upset and I'm disappointed," said RCMP Chief Supt. Bob Paulson,
who now is in charge of national security, criminal operations in Ottawa.

He said Giles, 58, "was a very high priority for us" and remains a
suspect in the 2001 seizure of a two-tonne shipment of cocaine headed
to B.C. aboard a vessel named the Western Wind, which was intercepted
by authorities in Washington state but no one was ever charged.

"Mr. Giles can now get back to work in Kelowna," Paulson said
sarcastically.

Police are hopeful that two pending trials involving allegations that
the East End Hells Angels are a criminal organization will end with
convictions, he said in an interview.

"We're not done yet," Paulson said. "We still have two more
significant trials [pending]."

"I'm still very hopeful that the criminal organization offences will
succeed at the upcoming trials."

After the verdict, a number of Hells Angels who were in court for the
ruling -- including a biker facing trial in the fall for weapons
offences -- shook Giles' hand and congratulated him.

The judge did convict David Roger Revell, 43, and Richard Andrew
Rempel, 24, of possession for the purpose of trafficking more than
seven kilograms seized by police in 2005, and trafficking another
kilogram of cocaine seized from a Kelowna drug dealer during a
surveillance operation.

The two drug dealers will be sentenced May 5 in Vancouver.

The two had also faced charges of possession of cocaine for the
purpose of trafficking in association with a criminal organization,
but these charges failed because of Giles' acquittal.

In acquitting Giles, the judge said she found the evidence against the
biker was "weak" and intercepted communications were "unreliable"
because they were difficult to hear.

The Crown alleged at trial that Giles, a Hells Angels member for more
than 20 years, was directing Revell and Rempel in their drug
trafficking activities.

But the judge found the Crown's interpretation of all the evidence,
including surveillance and intercepted conversations from inside
Giles' home and a Hells Angels clubhouse, was "strained" and did not
prove beyond a reasonable doubt that Giles had a measure of control
over the cocaine seized by police.

"The totality of the evidence fails to prove the guilt of Giles beyond
a reasonable doubt," the judge said in a 71-page written ruling.

"There is no proof that Giles was a party to the offence Revell and
Rempel committed," the judge said. "There is no evidence that Giles
did anything to assist or encourage them to possess the cocaine."

Without being able to find guilt against Giles on the cocaine
possession, the judge said the essential element of the criminal
organization offence as alleged -- that the accused possessed cocaine
for the "benefit of, at the direction of or in association with a
criminal organization, to wit: the East End charter of the Hells
Angels" -- could not be established.

"Because Giles is not guilty of the predicate offence, count two [the
criminal organization offence] fails against all the accused," the
judge concluded.

Giles' lawyer, Richard Fowler, said outside court that his client was
pleased.

"These were serious offences and anybody charged with a serious
offence is going to be extremely grateful that the court did such a
thorough job in analysing the evidence," he said.

He added the judge did a good job in finding that the Crown's
interpretation of wiretap conversations was over-reaching and
inaccurate. "She said they were speculating," he said the judge found
of the Crown's case.

Project E-Pandora involved a police agent who was offered $1 million
to infiltrate the Hells Angels chapter. He wore a listening device to
secretly record conversations with bikers who now are facing trial for
a series of criminal offences, including drug trafficking and
possessing weapons.

The Crown alleged at trial that Giles and other East End Hells Angels
had moved to Kelowna to set up a new chapter in order to expand their
territory and cash in on the booming illegal drug trade in Okanagan
valley.

Police set up surveillance on Giles and other bikers, which led to
police seizing three kilograms of cocaine from a Westside Self Storage
locker that Rempel was observed visiting. Another five kilos of
cocaine was kept inside a hidden compartment in a green Chrysler
Intrepid, which was observed parked on the Westbank car lot owned by
Revell.

Police found another half-kilo buried on the car lot. Revell owned
several Kelowna area businesses, including Reflex Gym, a bar and grill
and a laundromat.

Police also covertly placed listening devices inside the Kelowna Hells
Angels clubhouse and inside the home of Giles.

It was those conversations that the Crown relied heavily upon to prove
that Giles had constructive possession of the cocaine and was
directing Revell.

In one conversation, Giles was heard telling his girlfriend, after she
complained that Revell's airfare to Calgary had been put on her credit
card, that "he made me $30,000 in the last few months."

The Crown alleged that was a reference to cocaine trafficking. The
judge said it may have been a reference to illegal activity but no
mention was made of drug trafficking or any other source of the revenue.