Whistleblower admits leak; rips ‘hypocritical’ Attorney General David Eby
“Did I leak information to the media? Yes, I did. Would I do
it again? Yes, I would. We wouldn’t be here today if I hadn’t.”
That’s the admission of former B.C. Lottery Corporation
director of anti-money laundering investigations Ross Alderson heard at the
Commission of Inquiry into Money Laundering in British Columbia Thursday.
It was in 2017 that Alderson blew the lid off of money
laundering in provincial government-regulated casinos when he leaked
information to then Province reporter Sam Cooper upon perceiving senior
officials were letting the matter slide to placate casinos and drive revenue to
government coffers.
He explained his rationale:
“I saw how many of these [Chinese casino] patrons were
linked into real estate transactions, into other transactions; that these were
people with criminal links — that, I was given information from police — and
not only that, but some very concerning links to the Chinese Communist Party.
“When I came to Vancouver and I would drive to my office
through Hastings and Main, and what I saw there, you don’t see too many places
like that in the world. It’s disgusting. And I just, the whole thing to me was
distasteful. I felt that I was in a position where I had the information that
this needed to be out in the public forum.”
Alderson testified from his new home in his native Australia
following a lengthy delay in which he didn’t communicate with the commission
despite being issued a summons in March 2020. The commission proceeded without
his important testimony, leading to a lengthy discussion, if not an argument,
about those circumstances with commission counsel Patrick McGowan.
But the more relevant substance of his testimony Thursday
surrounded his role at BCLC, first as a casino investigator and then as the
director of investigations until his resignation in October 2017.
Alderson told of one memorable example that summed up his
time at BCLC. It was in 2012 when he said River Rock Casino and Resort manager
Rick Duff chastised him and other investigators for approaching and questioning
a patron who was refining $100,000 in cash (swapping twenties for hundreds
without playing).
Subsequently, at a meeting with BCLC executives, “I was told
categorically [by BCLC vice-president of corporate security and compliance
Terry Towns] not to speak to patrons.” He added Towns told him he wasn’t a cop
anymore while his manager Gordon Friesen remarked that "it's all about the
revenue."
Alderson, who was a former police officer in Australia until
coming to Canada in 2008 to work for BCLC, described how the investigators were
dejected. After the meeting, Alderson said they huddled at a nearby bar to vent
and the next day they posted a note in the office that read: "See no evil,
hear no evil, speak no evil.”
The commission has heard a number of testimonies on how
casinos violated federal cash transaction reporting requirements by setting
thresholds at $50,000, not the required $10,000 — evidently with tacit support
by BCLC. McGowan asked Alderson why he didn’t change those thresholds as
director. Alderson explained, "At the time I did not believe I had the
authority to do that,” adding such decisions would require government approval —
he couldn’t just flip the switch.
After he became AML director in 2015, Alderson said he went
to the RCMP with investigators’ concerns about suspicious six-figure buy-ins.
He told of a meeting in 2017 he had with Towns’ replacement at the time, Rob
Kroeker. Alderson testified that Kroeker wanted to delay new AML measures even
after RCMP had informed BCLC and the Gaming Policy and Enforcement Branch
(GPEB) that transnational organized was behind the cash derived from
Vancouver's deadly illicit street drug trade.
“The comment [from Kroeker] was that it would be OK if we
let things slide a bit and that we delay the initiatives.” Why? Asked McGowan.
Alderson said Kroeker explained it was Chinese New Year and “a lot of money was
coming into town.”
McGowan noted Kroeker denied this.
“Mr. McGowan, I’m under oath. I’m telling the truth,” said
Alderson.
McGowan questioned Alderson as to why he didn’t report this
to superiors, including CEO Jim Lightbody, or GPEB.
“My experience with the gaming regulator was they weren’t
too interested in this kind of thing,” said Alderson, adding, “How did I know
this didn't come from Mr.Lightbody?”
McGowan then further grilled Alderson on his information
leak. Alderson responded the questioning of his departure (tied to the leak) was
beyond the scope of the inquiry, which is to focus on money laundering. He also
took issue with testimony by Attorney General David Eby, who described
Alderson’s actions as illegal.
“Primarily, your honour, one of the things I did want to get
across is I find it quite interesting that a lot of the evidence that came out,
and I’ve read and reread rules of engagement for this inquiry and going through
my notes, there are a number of examples of incidents, at best indifference to
money laundering, however there seems to be this obsession from the B.C.
Lottery Corporation and the fact I may have done some wrongdoing in giving
information out to media,” said Alderson.
“When I go back to [contracted researcher] Peter German’s
[2018] press conference with the attorney general standing next to him and
where the report itself commends the work of Sam Cooper and the attorney
general knowing at that time the information came from me. And now we
fast-forward three years and the attorney general says what I did was inappropriate
and unlawful. To me that’s incredibly hypocritical. The fact is we wouldn’t be
having an inquiry if I hadn’t done it back then.”
McGowan stated his leak is evidence that reflects upon him.
“A lot of this is to disparage the reputation of the
whistleblower,” Alderson countered.
“These people can have their opinion, or whatever they like,
but my conscience is clear,” said Alderson.
McGowan then spent about half an hour on Alderson delaying
his testimony by not responding to commission emails to come to the stand
(online).
Alderson said he was always in Australia but did take time
away in 2020 to deal with his family and the pandemic. He said the commission
had resources to find him whereas McGowan asked, with indignation, if he
expected them to conduct an “international manhunt.”
In another twist, it was revealed that the B.C. government
has taken exception with a part of Alderson’s affidavit. The document has yet
to be posted online so it’s unclear what is contentious; however, it involves
communications with former RCMP officer-turned-whistleblower Fred Pinnock.
Under cross-examination, BCLC lawyer Bill Smart pointed out
that the Crown corporation did try to reach out to police on the matter,
including an information-sharing agreement in 2014.
Smart said it wasn’t until police deemed the cash to be
proceeds of crime that anyone at BCLC could definitively call it so.
Considering officials were watching upwards of $800,000-plus
in small denominations being brought to casino cages, Alderson said, “it boils
down to some common sense.”
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