HELLS INFORMANT MAY NOT TALK

Phoning Friends Back Home To Say He Won't Take Stand

'He keeps saying it wasn't his fault and that police forced him into
it. It's a real solid investigation. Police did a good job'

A career criminal whose work as an undercover police agent was
instrumental in the recent arrests of three Hells Angels and 10
associates is telling friends and family he will not testify for the
prosecution, former friends and legal sources say.

Franco Atanasovic, 46, is currently under guard by RCMP at an
out-of-province location, but has recently phoned friends in Winnipeg
saying he won't take the stand against the bikers in what's been
billed as the most elaborate case yet against organized crime in Manitoba.

"He keeps saying it wasn't his fault and that police forced him into
it," said one acquaintance, who has known Atanasovic for about a
decade. "He said he'd never testify against (one of the bikers)
because they used to be friends."

The acquaintance said Atanasovic has made several phone calls to
friends in Winnipeg, and many to his girlfriend, saying he was coerced
by police into infiltrating the Hells Angels. "He's trying to get
sympathy," the acquaintance said, adding everyone in Atanasovic's
family and circle of friends knows he was the secret police agent.
That now includes all of the accused, who have been informed of
Atanasovic's role in the police operation.

Atanasovic went into hiding with his two sons days before police
raided the Hells Angels clubhouse on Scotia Street Feb. 15.

Thirteen people, including the three Hells Angels members -- gang
president Ernie Dew, 46, Jeff Peck, 43, and Ian Grant, 31 -- were
arrested on drug trafficking charges. Grant was also charged with extortion.

The case against the three Hells Angels and 10 others remains before
the court. To date, three accused have applied for bail and all have
been denied. The latest was Joshua Lyons, 23, who learned yesterday he
must remain in custody pending his trial.

Lawyer Jay Prober, who acts for two of the Hells associates, said he
has also heard Atanasovic is saying he doesn't want to testify.

"It's the same thing Robert Coquete said," Prober said. "It turned out
to be the case. He didn't produce. I wouldn't be surprised if the same
thing happened here."

Coquete was a junior gang member who agreed to testify against five
fellow Hells Angels associates in 2002 in a multimillion-dollar
intimidation and anti-gang case. It collapsed in June 2004 when
Coquete refused to co-operate and the five men walked free.

Although Atanasovic is expected to be an important Crown witness,
justice sources say this case likely won't collapse without him.
That's because police have compiled hours of video and wiretap
surveillance and sworn statements that they expect will hold up in
court. In many of Atanasovic's alleged dealings with the suspects, he
wore a hidden listening device.

"It's a real solid investigation. Police did a good job," said a
defence lawyer who wished to remain anonymous. For his role in the
investigation, which was headed up by the Manitoba Integrated
Organized Crime Task Force, Atanasovic is getting $350,000 and a new
identity. He has also been receiving a weekly maintenance payment of
$350 during the investigation, which started Oct. 18, 2004.

At the time he began working for police, Atanasovic was a local
distributor for Prolong lubricant additive. Most recently, he worked
for a local heavy equipment business.

Atanasovic's neighbours on Spruce Street in the West End expressed
surprise at his involvement in the case. Atanasovic, his two sons and
the family's two German shepherd dogs left the house unannounced
several days before the Feb. 15 police raids. Days later, movers
emptied the neat one-storey home.

"I can't say enough good things about Franco," one neighbour said.
"Franco always cut my grass and his dogs were great protection. They
scared away everybody."

"I'll miss him," said another. "You don't come across people willing
to help older people too often."

Court documents show Atanasovic is knee-deep in debt and emotionally
fragile. Since 2002, eight civil court judgments have been registered
against him, mostly for unpaid loans. The total balance owing by
Atanasovic is more than $100,000.

Court documents filed in the Hells Angels case say Atanasovic owed a
Hells Angels member $60,000 for a failed 2002 deal for ephedrine, used
to make the street drug methamphetamine. Atanasovic paid off the debt
to another Hells Angel in 2005 when he was working undercover for
police. Part of the debt was allegedly paid through the sale of a 2004
Harley Davidson motorcycle for $43,537.

The court documents also say Atanasovic's mental health was a concern
during the investigation. Police make reference to him being treated
for a "medical condition" during the investigation in a 217-page
affidavit released publicly last week. Several justice sources
familiar with the case say Atanasovic apparently suffered some kind of
breakdown and is being watched closely by police.