TRIAL OF FORMER PROSECUTER CONTINUES

Jeff Root Faces Money Laundering Charges

Former federal prosecutor Jeffrey Root and an undercover RCMP officer
discussed laundering millions of dollars in illegal drug money from
Canada to the United States, a Welland court heard Wednesday.

While no deal was completed and no money ever exchanged hands, the
various deals that were discussed involved sums in the range of $5
million to $25 million.

Root, 40, is on trial in the Superior Court of Justice in Welland
charged with five counts that include money laundering and conspiracy
to possess the proceeds of crime.

He has pleaded not guilty to all counts. Root is being represented by
Welland lawyer Mark Evans.

The trial began Monday in front of Justice Linda Templeton, but was
adjourned to Wednesday when a legal issue arose over the preferred
indictment brought against Root. On Wednesday, the judge ruled the
proper procedure was followed when the preferred indictment was
issued and ordered the trial to begin.

The Crown's key witness was a sergeant with the RCMP who worked
undercover using the name Paul Cox. Court heard he passed himself off
as a wealthy businessman with clients who were interested in
laundering millions of dollars from the sale of illegal drugs, namely cocaine.

The officer (Cox is not his real name) has been with the RCMP for
close to 35 years, beginning undercover work in 1975. He has been
involved in more than 1,000 cases, some of which involved money
laundering and proceeds of crime.

Cox said the RCMP began an investigation - dubbed Project O'Beast
(the O stands for Ontario) - in the summer 2001. Their focus was on
members of the Niagara-based Ward family, some of whom have
connections with the Hells Angels in Welland.

The police also worked with a paid agent named James Kelly, who set
up a business in Niagara Falls.

The business operated under the name of the Shamrock Eezy Grow
Hydroponics at 4670 Queen St., a building jointly owned by former
justice of the peace George Radojcic and his wife, Anne.

Kelly introduced Radojcic to Cox, and the two had conversations about
money laundering. Court heard Radojcic told Cox he knew a lawyer,
with a solid reputation, who might be able to help them launder some money.

Radojcic was later charged by the RCMP with seven counts related to
money laundering.

Last month in a Kitchener courtroom, he pleaded guilty to one count
of money laundering involving $8,400 and was sentenced to two years
less a day of house arrest.

Cox and Root had a number of meetings during 2002 and 2003 to discuss
possible money laundering deals. Amounts in the range of $5 million,
$10 million and $25 million were discussed, but no deal was ever
worked out because Root and "his people" wanted to be paid 25 per
cent of the total; Cox was only offering between 10 and 20 per cent,
depending on the volume of their transaction.

In conversations with Root, court heard, Cox made it clear on several
occasions his money came from the sale of cocaine. It was "dirty
money" he wanted to have laundered.

The money was to go from Canada to the United States, possibly ending
up in California and Florida.

Cox wore a body microphone and recorded a number of the conversations
held in a Lundy's Lane restaurant and at the St. Catharines
courthouse where Root was conducting cases.

One was held in the boardroom of the law office where Root works in Welland.

A number of those taped conversations were played in court Wednesday.

There was even some discussion about working with a law firm from
Boston, and writing a cheque from the trust account of Root's law firm.

Root mentioned one plan that would have involved moving money from a
company in Canada to another anywhere else in the world. The company
here would lend the other company $5 million, at a rate of 20 per cent.

Cox told Root he first wanted to do a test run of $200,000, to see if
the money reached the other end as discussed.

During one conversation, Root told Cox "you can get $1 million in
crisp $100 bills in a briefcase and $10 million in a hockey bag,"
then added: "I know."

Another plan briefly discussed involved $25 million that "some
Indians on the St. Lawrence were sitting on" and couldn't move.

The last telephone conversation between Root and Cox took place Jan.
31, 2004, when Root said the answer from his people was "no," that
they were not interested and were going to move in another direction.

Federal Crown prosecutor David Rowcliffe finished his case without
calling any further witnesses.

The defence elected to call no evidence.

The matter will return to court Oct. 24 for written submissions. The
judgment will be given Nov. 23.