PROVINCE UPS PAY FOR INFORMER

Former Hells Angels Associate To Get $525,000 Plus Allowance

A career criminal turned undercover police agent has been given a
$175,000 taxpayer-funded "bonus" for his efforts in taking on the Hells Angels.

Franco Atanasovic, 46, originally signed a deal that would pay him
$350,000 for his work, which included wearing a wire to tape
conversations while conducting drug deals with high-level gang
members and associates.

Now RCMP have authorized an additional payment that will bring the
total to $525,000. That doesn't include weekly maintenance payments
of $350 Atanasovic gets for other expenses.

He was the key figure in a year-long probe that ended in February
with 13 arrests, including Manitoba Hells president Ernie Dew and
full-patch members Jeff Peck and Ian Grant.

Two lower-level couriers have already pleaded guilty for their roles
in delivering drugs to Atanasovic and been sentenced to four years in
prison. They will both be eligible for accelerated parole after
serving only eight months.

The Crown has publicly stated it will be seeking sentences of 10
years or more for the full-patch Hells members, if they are convicted
at trial. The accused are going directly to trial without a
preliminary hearing.

Atanasovic has been relocated out of the province under the witness
protection plan.

RCMP Staff Sgt. Paul Saganski wrote to the provincial Justice
Department early this month that the investigation put Atanasovic at
risk and he deserved to be fairly compensated.

Defence lawyer Ian Garber, who is representing Grant, said there
might be an ulterior motive for padding Atanasovic's wallet.

"I think they're just trying to keep him happy and compliant," he said.

Atanasovic is knee-deep in debt and facing several court-ordered
civil judgments totalling about $100,000, causing some lawyers to
look at garnishing part of the wage he is making from police.

He has also told some friends and family members he will not take the
witness stand and testify against the bikers.

Crown attorney Chris Mainella described Atanasovic in court last
month as a career criminal, thief and liar who is unreliable and has
threatened suicide and battled depression throughout the sting
operation. But Mainella said the agent's most important work has
already been done and he is no longer crucial to pursuing convictions
against the accused.

"He was the human who bridged the gap with the criminal underworld.
But he has become superfluous," Mainella said.

That's because Atanasovic's work has led to hundreds of hours of
phone taps and videotaped surveillance that provide valuable
evidence, the Crown says. It points to the two early guilty pleas as
a sign of success.

Others say the additional payment will allow Atanasovic to pay off
his debts before he collects the federal award money.

Former friends in Manitoba and Alberta allege he bilked them out of
thousands of dollars on phoney motorcycle sales and business deals.

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 allegation, which was investigated by the Winnipeg police stolen
auto unit, was that Atanasovic agreed to sell a custom
Harley-Davidson motorcycle for $25,000. He accepted payment, but
instead allegedly sold the motorcycle to someone else in the United
States after going to the Sturgis motorcycle rally in South Dakota.

Court documents say police dropped the case, since it was determined
to be a civil matter. Atanasovic is now being sued for $24,500, as he
allegedly only paid the plaintiff back $500 before going into police hiding.

"Obviously, I was a little too trusting," the 35-year-old plaintiff
said. "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."

Threat To Agent Huge, Says Letter

In a May 2 letter obtained by the Free Press, RCMP Sgt. Paul Saganski
argued Franco Atanasovic deserved proper payment for taking part in
an undercover investigation of the Hells Angels. Some quotes:

* "The long-term effect of this investigation on future
investigations is monumental."

* "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 can not be underestimated. It is necessary that the
police agent be fairly compensated for his services during this investigation."

* "Project Defence was a high-risk and high-profile investigation
that targeted organized crime in the province of Manitoba. The
success of this investigation was a direct result of an integrated
approach to policing. The utilization of a police agent at this level
of criminality was an effective investigative technique."

* "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."