GANG RUN LIKE A BUSINESS, JUDGE SAYS

Many Multinational Companies Would 'Envy' Hells Angels' Structure,
Jurist Notes In His Ruling

The Hells Angels Motorcycle Club is a highly structured criminal
organization that's better run than many multinational corporations,
says a Toronto judge.

Justice John McMahon of Ontario Superior Court ruled yesterday that
the outlaw biker organization has a "vertical corporate structure"
that "would be the envy of many international corporations."

He made the comments in the trial of Kenneth (Wags) Wagner, 43, of
the Hells Angels Niagara chapter, who was found guilty of trafficking
drugs and a pistol for a criminal enterprise.

The judge's finding that the Canadian Hells Angels are a criminal
organization supports a landmark ruling in Barrie, Ont., by Madam
Justice Michelle Fuerst during a 2005 extortion trial.

Yesterday, McMahon told court that one of the reasons he concluded
the Hells Angels are a criminal enterprise in Canada is because the
club actively gathers intelligence on its enemies, including police.

In his ruling, the judge noted a police report that states Ontario
Hells Angels maintain photos and lists of police officers and rival
bikers, and information on officers' wives.

Federal prosecutor Tom Andreopoulos told court that top-secret police
intelligence documents stamped "Private and Confidential" and "For
Police Use Only" were found in the clubhouse of the Niagara Region
Hells Angels and in the homes of Wagner and another club member,
Gerald "Skinny" Ward, 60. These included a Niagara Regional Police
file with photos and other details on the St. Catharines chapter of
the Outlaws gang; a rival of the Hells Angels; a Niagara police memo
on the purchase of a hotel; and a handbook for members of the
provincial Biker Enforcement Unit.

Wagner had pleaded guilty to trafficking more than four kilograms of
cocaine to a member of the Oshawa Hells Angels chapter, who was
acting as a police agent, and to possession of $150,675 in proceeds
of crime. However, he had pleaded not guilty to instructing others to
commit offences, namely trafficking cocaine and transferring a
firearm for the benefit of a criminal organization.

Yesterday, the single father of two apologized to his family, vowing
to reform, and said he wanted to quit the motorcycle club.

"I was considering retiring from the club, but it is very frowned
upon to do when in jail," the stocky welder told the judge. "If I
quit the club in jail, it looks like I'm blaming the club."

Andreopoulos asked for a sentence of 10 years - six for the "criminal
organization" charge - on top of two years pre-trial custody. Defence
lawyer Andras Schreck asked for nine years less time spent awaiting
trial. McMahon rules on the sentence Oct. 7.

The judge said he was impressed with the testimony of police agent
Steve Gault, who was a full member and secretary of the Hells Angels'
Oshawa chapter. The judge called Gault, who has received more than
$400,000 from police for his work, "a credible and reliable witness."

The judge noted when Gault was asked if Hells Angels in Ontario are
merely aging motorcycle enthusiasts, he replied, "That couldn't be
farther from the truth."

He noted that Gault said that drug dealers join the Hells Angels
because of the power and criminal network they gain from wearing the
club's "death-head" winged skull on their backs.

"The patch is muscle and everybody backs it," Gault told
investigators. "You have the power with the patch."

Other documents filed in court include a transcript of a secretly
recorded conversation between Ward and Gault. .

In the conversation on Aug. 18, 2005, Ward advised Gault that he used
to have a police officer bring him paperwork.

Gault is now in a witness protection program.