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Bob Mackin

A lawyer for Meng Wanzhou told a judge in Vancouver on Aug. 13 that the case for her extradition to the United States is fatally flawed because the Huawei CFO did not deceive or deprive HSBC.

Eric Gottardi opened three days of arguments in B.C. Supreme Court, after lawyers for the Government of Canada spent two days making the case for Meng to be sent to trial on fraud charges in New York.

Eric Gottardi (Peck and Co.)

“Frauds are usually extreme, a lie is told, the result of the lie, a victim is cheated out of money, or at least put at risk of losing money,” Gottardi said before Assoc. Chief Justice Heather Holmes. “This case is different. The alleged deception is ambiguous at best and the risk of economic loss to the alleged victim HSBC is wholly illusory.”

Meng is accused of misleading the bank in 2013 to loan Huawei money by claiming that a subsidiary called SkyCom was a third-party. The U.S. claims Meng hid Huawei’s control of SkyCom in order to subvert sanctions on Iran.

“The statements in the Powerpoint are true, Huawei did sell its shares in SkyCom, Meng left the board and SkyCom became a legal entity,” Gottardii said. “None of this content in the Powerpoint was wrong or misleading.”

The Crown, on behalf of the U.S., contends that Meng put HSBC at risk of ruining its reputation and of breaking U.S. sanctions law. Gottardi called the U.S. case theoretical or speculative.

“The committal for extradition threshold is not a high one, it is a meaningful threshold and the requesting state requires a plausible case on each element. Here we say the case falls far short on all of them,” Gottardi said.

Meng Wanzhou leaving the Law Courts on Sept. 23 (Mackin)

HSBC, he said, is not a victim and has not been subject to criminal prosecution or civil penalty related to the Huawei deal.

Coincidentally, HSBC is the lender for both of Meng’s Vancouver houses, which are in the name of her husband, “Carlos” Liu Xiaozong. 

After Meng’s defence team is finished on Aug. 17, the Crown will have a chance to reply. The hearing is scheduled to end Aug. 20 and Holmes expected to reserve decision for a later date. Regardless of outcome, an appeal is expected.

Before the hearing began Aug. 11, China upheld the death sentence for convicted drug smuggler Robert Schellenberg and sentenced hostage Michael Spavor to 11 years. Both decisions were condemned by Canadian government officials as retaliation for the Dec. 1, 2018 arrest of Meng at Vancouver International Airport on a warrant tied to Canada’s extradition treaty with the U.S.

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Bob Mackin A lawyer for Meng Wanzhou told

Bob Mackin

The B.C. NDP government rejigged the B.C. Immigrant Investor Fund last year, but refused to release the business case when it was rebranded as inBC Investment Corp. in late April.

B.C. NDP’s new Crown corporation, a $500 million investment fund (BC Gov)

theBreaker.news requested the business case for the $500 million fund, which is overseen by a board of NDP patronage appointees, on May 6.

The government said on June 18 that it used a section of the FOI law to delay its disclosure by 60 days. In the response letter on Aug. 13, the government admitted it broke the law.

“The requested records were not published within the 60 day period ending August 3, 2021. Therefore, a new FOI request was opened as of August 4, 2021.”

theBreaker.news was not notified of this new request until the Aug. 13 letter that said the business case had been published on the same day on a government website.

The 123-page document below is heavily censored — meaning the NDP cabinet is refusing to tell British Columbians the projected operating costs (including board expenses, salary and benefits, office space, operating and administration), full-time equivalents, and cash flows for the newest Crown corporation. inBC bills itself as a triple-bottom line organization, meaning it intends to invest on the basis of social, environmental and economic values.

When its enabling legislation was tabled, the NDP took steps to exempt inBC from the freedom of information law.

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SCROLL DOWN to read the inBC business case, obtained by theBreaker.news under Freedom of Information.

Inbc Business Case 2021 Copy – obtained by theBreaker.news by Bob Mackin on Scribd

Bob Mackin The B.C. NDP government rejigged

Bob Mackin

“At last, we come to committal.”

The words of Robert Frater, the top lawyer at Canada’s Department of Justice, to begin the final phase of the extradition saga for Chinese fraud suspect Meng Wanzhou — 984 days since Canadian police arrested the Huawei CFO at Vancouver International Airport.

Meng Wanzhou’s Hong Kong passport (B.C. Courts exhibits)

Frater was appearing before Associate Chief Justice Heather Holmes at B.C. Supreme Court in Vancouver on Aug. 11, the morning after a court in Dandong, China sentenced Canadian hostage Michael Spavor to 11 years in jail in retaliation for Meng’s arrest.

At issue is the United States bid to try Meng in New York for her August 2013 meeting in Hong Kong with HSBC. The U.S. claims Meng misled bankers about a Huawei subsidiary called SkyCom in order do business in Iran, contrary to U.S. sanctions.

Meng’s statements to HSBC “were dishonest because of what she did say and because of what she did not say,” Frater said.

He told the court that Meng misled HSBC by not disclosing the truth about Huawei’s control of SkyCom.

Robert Frater (Government of Canada)

“Ms. Meng was faithful to Huawei’s script that SkyCom was a third party partner of Huawei and that HSBC had no risk committing sanction violations by continuing to provide banking services to Huawei,” Frater said.

“When you send the CFO to the bankers to try and persuade them there is no risk, it certainly sends them a  message.”

Frater said there need not be economic loss to establish fraud — only acts of dishonesty and deprivation.

Despite Meng’s defence team aiming to try the case before Holmes, Frater said, extradition hearings are not trials. They are expeditious procedures to determine whether a trial should be held. He told Holmes that her job is to decide whether the case meets Canadian extradition law, not to assess “quality, credibility or reliability of the case, except in a very limited sense.”

Two Canadians named Michael were taken hostage in China (Mackin)

Meng was arrested Dec. 1, 2018 after a flight from Hong Kong. She had planned to travel onward to Mexico City the same day after a brief detour to deliver some items to one of her two houses in Vancouver.

She made it to one of those houses on Dec. 11, 2018, the day she was released on bail. Since May 2019, she has lived at a mansion on the same block as the U.S. consul general’s residence.

Her arrest sparked a diplomatic rift between Canada and China. Businessman Spavor and former diplomat Michael Kovrig were arrested in China the same day Meng was released on bail in Vancouver. Kovrig awaits his verdict on a similar charge of spying. The Chinese government has released no evidence and denied diplomats and reporters access to their trials.

During court hearings in Vancouver over the last two years, Meng’s legal team has claimed she is the victim of a politically motivated prosecution stemming from the U.S.-China trade war. They also claim Canadian police infringed upon her rights when she was arrested.

In May 2020, Holmes ruled the U.S. extradition application could proceed because of similarities in Canadian fraud law — a principle known as double criminality.

The extradition hearing is expected to conclude by Aug. 20 and Holmes is expected to reserve her decision for a later date.

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Bob Mackin “At last, we come to committal.” The

Bob Mackin

While another heat wave sizzles British Columbia, questions remain about the apathy by public officials toward the record-breaking “heat dome” in the last week of June.

The hottest June weekend in 96 years taxed emergency responders and hospitals, and led to the deaths of at least 569 people. While frontline workers had their hands full, politicians were nowhere to be seen. 

Vancouver city hall (Mackin)

The calendar and email for the mayor of the province’s biggest city are further evidence that Vancouver’s Kennedy Stewart did not take any active role in responding to the weather emergency — despite the early 2019 declaration by his council of a symbolic climate change emergency. 

Stewart’s only June 25 appointment was a meeting with NDP Childcare Minister Katrina Chen.

June 26 and 27 were blank.

On June 28, he met with development lobbyists from the Urban Land Institute, city manager Paul Mochrie, Attorney General and Housing Minister David Eby and a follow-up meeting on a potential 2030 Winter Olympics bid.

There was no meeting specific to the heat wave.

theBreaker.news wanted to see all of Stewart’s email for June 25-29, 2021 that contains the words heat, heat stroke, heat exhaustion, temperature, weather, hot weather, heat wave, heat dome, Environment Canada, climate change, and forecast.

Under the freedom of information law, Vancouver city hall released 49 pages — 18 of which were pages from the Vancouver Sun website. SEE THE DOCUMENTS BELOW.

Mayor Kennedy Stewart (Mackin)

Stewart received email on June 24 from a person asking for an amnesty on Downtown Eastside street sweeps and park bylaws enforcement during the heat wave.

The June 25 reply came from Stewart’s email account, but contained the signature for “senior legislative advisor” Laurie MacLean.

Otherwise, the only other heat emergency-related email released to theBreaker.news comprised of Vancouver Coastal Health bulletins. One was the June 25, 6:30 p.m. declaration of an extreme heat alert. The other was a June 28 notice that the heat wave had postponed coronavirus vaccination and testing appointments at the West End Community Centre and Vancouver Community College.

Environment Canada issued numerous warnings several days in advance of the June 25-29 heat wave that temperatures would put the very young, very old and people with chronic illness at risk of heat exhaustion or heat stroke.

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2021-344 – res by Bob Mackin on Scribd

Bob Mackin While another heat wave sizzles British

Bob Mackin

The head lawyer for Canada’s Department of Justice said in a Vancouver courtroom on Aug. 10 that Huawei executive Meng Wanzhou is no victim.

Robert Frater (Government of Canada)

Meng’s lawyers want B.C. Supreme Court Assoc. Chief Justice Heather Holmes to stay proceedings and let her return to China. They say her rights were abused by Canadian police when they arrested her at Vancouver International Airport in December 2018. They also claim she suffered prejudice when then-U.S. President Donald Trump suggested she could be a bargaining chip in trade negotiations with China.

The defense application was a last-ditch effort before the actual extradition hearing is scheduled finally to begin Aug. 11.

Crown lawyer Robert Frater refuted the defence arguments and called Meng a “sophisticated traveler who was, at most, minimally inconvenienced.

“Many travellers are inconvenienced by having to deal with officials at the airport.”

Meng spent three hours in limbo on Dec. 1, 2018, before she was finally interviewed by customs officers after flying from Hong Kong.

Instead of flying onward to Mexico City, an RCMP officer took her to the Richmond detachment lockup and booked her. A warrant had been issued for her arrest the previous day, because the U.S. government wants to try her in New York on fraud charges.

Frater conceded that the sharing of Meng’s mobile device passwords between Canada Border Services Agency officers and RCMP officers was the only hiccup. However, he reminded the court, the passwords were not used to access the information on her devices.

Frater, meanwhile, said that Meng’s lawyers “greatly overstate the former president’s words. There was nothing approaching a threat in those words, no words like ransom or bargaining chip have been used by requesting state officials.”

Said Frater to Holmes: “Your job is to look at the actual words, not an emotive recasting of the original language.”

Meng Wanzhou’s CBSA declaration card mugshot on Dec. 1, 2018 (BC Courts)

In March, Meng’s lawyer Richard Peck said Trump “cast a pall” over the proceedings and reduced Meng “from a human being to a chattel.” Peck described Meng as a bargaining chip or pawn in the “economic contest” between the U.S. and China.

The hearing came the morning after the latest in the trans-Pacific, geopolitical chess match. A court in China upheld a death sentence for 2018-convicted drug smuggler Robert Schellenberg of Abbotsford, B.C. The court also said it would soon announce a verdict in the case of Michael Spavor, one of two Canadians jailed and tried for spying in retaliation for Meng’s arrest.

Meng, however, lives in a Vancouver mansion under a nightly curfew and round-the-clock electronic monitoring. She is otherwise free to visit restaurants, parks and shop in boutiques under supervision from a court-appointed security company.

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Bob Mackin The head lawyer for Canada’s Department

Bob Mackin

West Vancouver penny stock promoter Frederick Sharp is one of four men charged in Boston over an alleged pump-and-dump scheme.

Frederick Sharp (YouTube)

Former lawyer Sharp, 69; Luis Carrillo, 47, previously of California; Mike Veldhuis, 41, of British Columbia; and Courtney Kelln, 41, of British Columbia, were each charged with one count of conspiracy to commit securities fraud and one count of securities fraud. 

The group is accused by the U.S. Attorney’s Office in Massachusetts of using encrypted smartphones and code words to communicate about their $140 million scheme through a Swiss firm from 2014 to 2018.

None of the allegations has been tested in court. 

Prosecutors pinpointed four stocks sold via pump and dumps: Vitality BioPharma, Inc. (ticker VBIO); OneLife Technologies Corp. (OLMM); Garmatex Holdings, Ltd. (GRMX); and PureSnax International, Inc. (PSNX).

Maximum penalties include 20 years in jail and $5 million in fines.

Sharp was the Canadian rep for notorious Panama law firm Mossack Fonseca, a specialist in offshore tax havens. He was one of more than 600 Canadians listed in the Panama Papers leak in 2016.

Sharp’s charges come almost 13 months after Vancouver stock promoter David Sidoo was sentenced to three months in jail for conspiracy to commit mail fraud.

Sidoo cut a plea bargain with prosecutors in Boston who were handling the college admissions scandal investigation. 

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Bob Mackin West Vancouver penny stock promoter

Bob Mackin

Special prosecutors David Butcher and Brock Martland announced Aug. 10 that they would press no more charges against B.C. Legislative Assembly senior staff after receiving the final report from RCMP investigators.

Retired-in-disgrace Sergeant-at-Arms Gary Lenz,  (BC Leg)

Butcher and Martland are not issuing any further comment, but could release a clear statement once all court proceedings are wrapped-up. The B.C. Prosecution Service said in a prepared statement that any proposed charges did not meet the standard of substantial likelihood of conviction or public interest.

Ex-Clerk Craig James is the only person charged so far. He faces five counts of breach of trust by a public officer and fraud over $5,000. He is scheduled for trial before judge alone beginning Jan. 24, 2022 at the Law Courts in Vancouver.

James and Sergeant-at-Arms Gary Lenz were immediately suspended and escorted out of the Legislature on Nov. 20, 2018. On that day, British Columbians learned that then-Speaker Darryl Plecas had called the RCMP after he and his Chief of Staff Alan Mullen found corruption in the offices of the two, most-senior permanent officers at the seat of government.

Plecas, who was speaker from 2017 to 2020, released details and evidence of the spending scandal in early 2019.

James and Lenz both retired in disgrace later in 2019 after separate reports found they committed wrongdoing. They kept their pension entitlements, but they were not forced to repay taxpayers.

A source familiar with the investigation told theBreaker.news that investigators sought to question a former speaker and the current clerk.

Former BC Liberal aide Connor Gibson blew the whistle on expense irregularities in Linda Reid’s office. It was not the first time that the BC Liberal Party speaker from 2013 to 2017 came under fire for spending.

Clerk Craig James swore Christy Clark in as Westside-Kelowna MLA in 2013, near Clark’s Vancouver office. (Facebook)

In 2014, Reid’s Richmond riding office underwent $79,000 in renovations and she spent $60,000 on Legislature renovations, including a muffin case for MLAs. She also charged taxpayers more than $5,500 to bring her husband with her to a Commonwealth Parliamentary Association conference in South Africa.

After she was caught, Reid said she reimbursed the treasury. Despite numerous requests by this reporter, Reid has never showed proof of repayment.

James’s successor, Kate Ryan-Lloyd, took a lump sum $83,235.30 payment in February 2012 when James gave himself $257,000 under a so-called, long-service retirement allowance program.

However, Ryan-Lloyd had a change of heart, repaid the sum and incurred an extra $16,285 in income tax a year later. Her husband Ken is a senior manager at the Office of the Auditor-General.

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Bob Mackin Special prosecutors David Butcher and Brock

For the week of Aug. 8, 2021:

The Tokyo Olympics are over.

Postponed in 2020 due to the pandemic, but they happened in the pandemic anyway. 

The International Olympic Committee is claiming success, because the Games eventually opened and closed on time. But the Japanese people are stuck with the bill and more coronavirus infections than there were when the cauldron was lit in an empty stadium surrounded by protesters. 

On this edition, hear expert analysis from ex-Vancouverite Dave Olson in Okayama, Japan and Jules Boykoff,  political scientist, author and Olympics industry critic from Portland, Ore.

Plus commentary and Pacific Rim and Pacific Northwest headlines.

CLICK BELOW to listen or go to TuneIn or Apple Podcasts.

Now on Google Podcasts!

Have you missed an edition of theBreaker.news Podcast? Go to the archive.

Support theBreaker.news for as low as $2 a month on Patreon. Find out how. Click here.

theBreaker.news Podcast
theBreaker.news Podcast
theBreaker.news Podcast: The Games are over, but Tokyo's problems aren't
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For the week of Aug. 8, 2021:

Bob Mackin

Constituency assistants for the B.C. NDP’s 57 MLAs could issue strike notice this week to back their demands for wage parity with federal counterparts and caucus employees.

John Horgan and Bowinn Ma at Waterfront Park in North Vancouver (Mackin)

They voted 94% to strike at the end of June. Mediation reached an impasse and two-thirds voted at the end of July against a settlement offer from the B.C. NDP Government caucus.

A strike committee is pondering next steps, said Paul Finch, treasurer of the B.C. General Employees’ Union (formerly the B.C. Government and Service Employees’ Union).

In case they decide to strike, we’re prepared to support those efforts and obviously they’ll have the whole union standing behind them,” Finch said.

“We’re very determined to get this wage correction and these are very difficult jobs, very critical jobs. CAs want to make sure they’re compensated fairly with their provincial and federal counterparts, they want to do that for the community and the community that they serve.”

Wages under the previous collective agreement ranged, as of Jan. 1, 2020, from $48,490.42 for starters to $57,466.64 for the most-senior. Finch said NDP caucus workers start at $52,635 and federal NDP constituency assistants $55,560.

Constituency assistants for the 28 BC Liberal and two BC Green MLAs are not unionized. 

Paul Finch of the BCGEU (Twitter/BCGEU)

Finch said talks also include changing the job title to “constituency advisors.”

“They do a lot of case work for the community, they’re kind of the glue or the integrated communication between people that are having difficulty accessing core government services and people that provide those services,” Finch said. “These are very precarious positions. CAs, if their MLA retires or isn’t elected, they don’t have a job to go back to necessarily.”

In a prepared statement, NDP Government Caucus executive director Roseanne Moran said MLAs “remain committed to continuing to work towards an agreement with the union.”

“B.C. NDP MLAs recognize that our constituency staff provide great service to communities across the province,” Moran said. “Since bargaining began in September 2020, we have addressed a range of issues and made progress. We respect that our staff, like all unionized workers, have a right to engage in job action should they choose to.”

Meanwhile, BCGEU is also in talks with head office workers represented by MoveUp. According to MoveUp, both sides hit a roadblock on July 22 on four issues: work from home, health and welfare benefits, wage increases and training premiums.

“There’s not a lot to report at this time,” Finch said.

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Bob Mackin Constituency assistants for the B.C.

For the week of Aug. 1, 2021:

It’s British Columbia Day Weekend and theBreaker.news welcomes back Jim Mullin of TSN and Football Canada for the View from Bowen Island.

Football Canada president and Krown Gridiron Nation host on TSN Jim Mullin

Mullin joins host Bob Mackin to talk about the pandemic-impacted Tokyo Olympics, the return of the Canadian Football League and the yesterday, today and tomorrow for B.C.

Plus Pacific Rim and Pacific Northwest headlines and commentary.

CLICK BELOW to listen or go to TuneIn or Apple Podcasts.

Now on Google Podcasts!

Have you missed an edition of theBreaker.news Podcast? Go to the archive.

Support theBreaker.news for as low as $2 a month on Patreon. Find out how. Click here.

theBreaker.news Podcast
theBreaker.news Podcast
theBreaker.news Podcast: The B.C. Day View from Bowen Island
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For the week of Aug. 1, 2021: