EXCLUSIVE: POLICE INFORMANT SPEAKS OUT

Man Who Worked Against Hells Angry Over Character Attacks

A Winnipeg man who led a secret double life as an undercover police
agent and collected evidence about the Manitoba Hells Angels for
$525,000 US says he's not getting the credit he deserves and is angry
over attacks on his character.

"I'm rich all right... My life is ruined," Franco Atanasovic, 46, told
the Free Press yesterday in an exclusive telephone interview.

"I'm not the bad person here, but I'm certainly being made out to
be."

Atanasovic and his two sons are currently under the Witness Protection
Program and have been moved out of Manitoba for their own safety. But
he still has free access to a telephone and said he wanted to set the
record straight about things he's been hearing and reading.

"I know the police aren't going to be happy I'm doing this, but I have
to say something," he said.

Police arrested 13 people -- including Hells Angels president Ernie
Dew and two other full-patch members -- in February, thanks largely to
the year-long work of Atanasovic who wore a wire and made several
kilogram-level cocaine and meth deals caught on surveillance tape. Two
lower-level couriers have already pleaded guilty and were sentenced to
four years in prison. A third accused is expected to plead guilty this
morning. "Do you think I did a good thing or a bad thing?" Atanasovic
asked yesterday. When told much of the public is probably pleased to
see justice officials taking aim at organized crime, Atanasovic said
"Exactly".

Atanasovic -- who has a lengthy criminal record for offences that
include fraud and deceit -- is facing several court-ordered civil
judgments totalling about $100,000 with more lawsuits expected to be
filed soon.

Former friends in Manitoba and Alberta allege in statements of claim
he bilked them out of thousands of dollars on phoney motorcycle sales
and business deals. Atanasovic denies those allegations.

Some lawyers are looking at garnishing part of the money he is getting
from police.

Atanasovic questioned the motives yesterday of several who have sued
him or plan to file claim.

"I don't like the fact a lot of these guys are saying things which
aren't true. They're making me look like the bad guy and want to come
across as choir boys," he said.

"But it's like they're coming forward saying 'Franco's got money so
lets sue him.'"

Atanasovic said he's aware some of the strongest criticisms of his
character have come from the Crown. Prosecutor Chris Mainella
described Atanasovic in court last month as a career criminal, thief
and liar who is unreliable and threatened suicide and battled
depression throughout the sting operation.

"Tell me about it," said Atanasovic. "But they got so much on these
guys it's not even funny."

The Crown has insisted they no longer needed Atanasovic in a major way
because his most important work -- opening the door for police to
collect hundreds of hours of phone taps and video surveillance -- has
already been completed.

Atanasovic originally signed a deal to be paid $350,000 plus expenses
for his efforts. Police recently authorized a $175,000 bonus, which
Atanasovic says was well-deserved.

"The level of threat associated (with) this investigation and the
long-term threat that he will be required to live with the remainder
of his life cannot be underestimated. It is necessary that the police
agent be fairly compensated for his services during this
investigation," RCMP Sgt. Paul Saganski wrote in a May 2 letter to
lawyers.

"The police agent was extremely well-placed and was able to
effectively assist in exceeding the objectives of this long-term
complex project. The results of this investigation speak for
themselves."

Atanasovic denies he demanded the extra money to help pay off debts
related to the pending lawsuits.

"I don't care about the money. If I have to pay it, I've got the money
to pay it. But there are a lot of discrepancies here with all these
guys putting these claims on me."

In one case, Atanasovic was alleged to have defrauded a Winnipeg man
of $25,000 on the sale of a motorcycle during the Project Defence
investigation. The statement of claim alleges he accepted payment, but
instead sold the motorcycle to someone else in the United States after
going to the Sturgis motorcycle rally in South Dakota.

Atanasovic is now being sued for the outstanding money.

"Obviously, I was a little too trusting," the 35-year-old plaintiff
said last week. "I didn't understand at the time why this guy wasn't
in jail and why they never prosecuted him, but when I learned what he
was involved in, then it all became clear."

Joseph Madarasz, an Alberta construction company owner, told the Free
Press he lent Atanasovic $25,000 in 2003 on the understanding the
money would be used to buy farm machinery.

Madarasz sued Atanasovic a year ago after Atanasovic allegedly ignored
requests to repay. However, the two agreed Atanasovic would pay
Madarasz $40,000 for the original loan. Atanasovic also wrote Madarasz
a bill of sale for his custom 2002 Harley Davidson Springer motorcycle
as collateral, but has still never paid any of the money owing.

"I'm not going to kid you, there were times when I wanted to kill him,
but spending the rest of my life in jail just wasn't worth it on him,"
Madarasz said, adding his dealings with Atanasovic led to the break-up
of his marriage.

Atanasovic said yesterday both allegations were false.

"Come on, do you really think these guys who hardly knew me would just
give me $25,000 cash?" he asked.

Interview with an informant

UP close with Franco Atanasovic:

ON HIS $525,000 PAYMENT.

"I'm rich all right... My life is ruined."

ON THE CROWN'S LESS THAN FLATTERING PORTRAYAL OF HIM AS A UNRELIABLE THIEF
AND LIAR.

"Tell me about it."

ON THE LAWSUITS HE IS FACING AND THE PEOPLE WHO HAVE FILED THEM.

"I don't like the fact a lot of these guys are saying things which
aren't true. They're making me look like the bad guy and want to come
across as choir boys ... But it's like they're coming forward saying
'Franco's got money so let's sue him.'"

ON HIS FINANCIAL STATUS AND CLAIMS HE IS KNEE-DEEP IN DEBT.

"I don't care about the money. If I have to pay it, I've got the money
to pay it. But there are a lot of discrepancies here with all these
guys putting these claims on me."

ON THE VALIDITY OF SOME OF THE LAWSUITS HE IS FACING.

"Come on, do you really think these guys who hardly knew me would just
give me $25,000 cash?"

ON THE RESULTS OF HIS WORK --

13 ARRESTS, INCLUDING THREE FULL-PATCH MEMBERS.

"Do you think I did a good thing or a bad thing?"