BILL PROMISES TO EASE SEIZURE OF ILLEGAL PROFITS

Modelled On U.S. Anti-Racketeering Legislation

The Ontario government introduced legislation yesterday that will enable it
to seize illegal profits of criminal syndicates without charges being laid.

Under the new measures, the province would use civil law to request the
courts "freeze, seize and forfeit" to the Crown the proceeds of unlawful
activity.

"Whether they're telemarketing scams or ... bike gangs, we intend to do
everything in our power to make Ontario not a desirable place for organized
crime," said Mike Harris, the Premier.

Mr. Harris said that his government was forced to act because the federal
Liberals have been ineffective in tackling criminal gangs, which cost the
Canadian economy between $5-billion and $9-billion annually.

"There needs to be strong action at the federal level. But they have been
proven to be a government consistently ... soft on crime and reluctant to
be aggressive," he said.

Jim Flaherty, the provincial Attorney-General, said he hopes the law,
modelled on U.S. anti-racketeering legislation, will lead to "hundreds of
millions of dollars" in property confiscated.

Assets would go toward a compensation fund that would be administered by
the province and be distributed to victims of crime. Police services could
apply for grants from the the fund, as well.

"The Remedies for Organized Crime and Other Unlawful Activities Act, if
passed, would make Ontario a national leader in fighting organized crime,"
Mr. Flaherty said.

"We intend to freeze, seize and forfeit the proceeds of organized crime, to
follow the money and seize the profits ... of illegal activities," he said.

Because police would be empowered to go to civil courts, where there is a
lower standard of proof than criminal courts, Mr. Flaherty said charges
need not be laid before assets are seized.

"There may often be criminal charges pending at the same time that the
civil remedies would be used, but not necessarily," he said.

"You may have situations where in fact there is not a criminal prosecution
underway or a conviction registered where the civil remedies would be
used."

While there are criminal-asset forfeiture provisions in the Criminal Code
of Canada, Mr. Flaherty said they are "not really effective."

Superintendent Chris Lewis, director of the criminal-investigation branch
of the Ontario Provincial Police, agreed.

"The problem with the federal legislation is you have to have that
substantive criminal offence and conviction. There's many cases that we run
into where people have great wealth -- cars, houses, boats, airplanes, big
bank accounts -- and no job, no visible legal means of support. This
legislation would assist us in those cases," said Supt. Lewis.

Farah Mohamed, a spokeswoman for Anne McLellan, the Minister of Justice,
said the federal government was still reviewing the provincial legislation
late yesterday.

But Ms. Mohamed disputed the suggestion that Ottawa was ignoring a growing
problem that plagues every part of Canada.

"We're not taking a backseat at all in terms of legislation or measures
with respect to combatting organized crime," she said. "To say that we
don't have measures is, I don't think, the true picture at all."

In fact, the federal government has used existing proceeds-of-crime laws to
seize about $230-million in assets since 1993.

Opinions on the Ontario legislation, meanwhile, were divided.

"It's a little broad, but that's preferable to the federal legislation,
which is ridiculously narrow," said Lee Lamothe, an author and one of
Canada's leading experts on organized crime.

Mr. Lamothe said the province should "go for broke and take on a top
criminal organization -- not a gang of burglars."

But John Rosen, a prominent criminal lawyer, said the new act is "totally
ridiculous" because Queen's Park is trying to supercede Ottawa.

"This is clearly criminal legislation. It's beyond the jurisdiction of the
province to pass. It's in the nature of criminal law ... the exclusive
jurisdiction of the federal government," Mr. Rosen said.

"It presumes guilt. Basically, the opinion of a police officer would be
sufficient to seize assets."

Ontario's move is the latest in a slew of initiatives by provincial
governments to battle outlaw motorcycle clubs and other organized-crime
syndicates.

In Quebec, where the Hells Angels and the Rock Machine biker gang war has
killed about 150 people since 1995, law-enforcement officials have been
aggressively confiscating criminal assets once charges are laid.

Over the past three years, Quebec police services have seized about
$13-million in cash and sold off $3.1-million in property.

In September, the Alberta government appointed a two-person team of
prosecutors to clamp down on organized crime.