CHANGES TO BIKERS' CLUBHOUSE BANNED AFTER RCMP SAYS IT MAY SEIZE PROPERTY

Judge Issues Temporary Order Under Pair Of Acts Pertaining To Proceeds Of Crime

VANCOUVER - The East End chapter of the Hells Angels has been ordered
by the B.C. Supreme Court not to sell its $500,000 clubhouse after
the RCMP told the court it may try to seize the property under
proceeds-of-crime legislation.

Under both the Criminal Code and Controlled Drugs and Substances Act,
police can ask the courts to temporarily freeze an asset they believe
they may seize in the future.

On Feb. 24, after hearing an application from the Mounties, Justice
Harvey Groberman ordered the East End chapter not to sell the
clubhouse or alter it in any way, such as taking out a second
mortgage or changing its ownership.

On Tuesday, an official with the seized property management
directorate -- a division of the federal government -- visited the
property to assess its worth.

RCMP representative Sgt. John Ward wouldn't comment Wednesday on
whether police intend to seek similar orders against other Angels clubhouses.

In July, seven Hells Angels members and a dozen alleged associates
were charged with a variety of offences -- including assault,
extortion, drug trafficking and weapons possession -- after raids on
Angels clubhouses in Vancouver and Kelowna.

Four of the Angels charged -- John Virgil Punko, Jean Joseph
Violette, Ronaldo Lising and Randall Richard Potts -- are accused of
committing or directing crimes for the benefit of a criminal organization.

Prosecutors are alleging the East End chapter of the Hells Angels is
a criminal organization, an allegation repeatedly denied by the
motorcycle club.

Ward said if the accused are convicted, police will apply to have the
clubhouse turned over to the government.

He said that application would be made on the basis the clubhouse was
"used . . . in the commission of an indictable offence" and not that
it was purchased with the proceeds of crime.

Ward would not reveal how police believe the clubhouse was used to
commit crimes. "That's something that's going to come out in court," he said.

If the clubhouse is turned over, Ward said, it would be sold by the
federal government and the proceeds distributed to drug awareness and
crime-prevention programs.

"The objectives of the proceeds-of-crime programs is to remove the
profit incentive from committing criminal offences," Ward said.

The Angels' trials are expected to begin next fall.

East End chapter president John Bryce refused to answer questions
about the actions taken against the clubhouse.

"I don't have any comment on it now," he said. "I'm just going to see
the lawyer right now."

The East End clubhouse is located at 3598 East Georgia St. in Vancouver.

It was purchased for $66,000 in 1987 by longshoreman and former
Angels member Michael Mitchell. Since then it has changed hands a
couple of times and is currently owned by Mitchell and current Angels
member Mitchell Riley.

Like most Vancouver homes, it has risen dramatically in value in
recent years and has a current assessed worth of $493,000.

A $210,000 mortgage with VanCity was taken out on the property in 1995.