Source: Toronto Star (Canada)
Copyright: 1999, The Toronto Star
Website: http://www.thestar.com/
Contact:  26 Jan 1999
Page: A3
Author: Bob Mitchell, Toronto Star Peel/Halton Bureau Chief

7 HELD IN $1 MILLION CUSTOMS THEFTS

Pearson inspector accused by RCMP of laundering drug money

A Canada Customs inspector assigned to target suitcases packed with drug
money removed luggage containing more than $1 million (U.S.), investigators
say.

Seven people, including two former customs agents, appeared in a Brampton
courtroom yesterday where they were granted bail and remanded to March 26
on numerous charges.

During a two-year Royal Canadian Mounted Police probe into money laundering
at Pearson International Airport, investigators say they found evidence
drug money had been laundered through banks in Greater Toronto, the Bahamas
and the British Channel Islands.

Police were tipped off to the scheme when a Toronto bank flagged a
``suspicious currency transaction,'' said Inspector Kevin Harrison of the
RCMP's London-based proceeds of crime unit.

Here's how police say the scam worked:

A customs inspector at Pearson was assigned to look for bags believed to
contain money being sent from Canada to Colombia, where the cash is
typically used to purchase narcotics that, in turn, would be smuggled back
into Canada.

``Part of his job was profiling money launderers,'' Harrison said. ``There
are certain ways they tag their bags and ship it. His job was to look for
suspicious indicators.''

In 1994, the customs officer actually located drug money being smuggled out
of the country in another suitcase and turned it over to the proper
authorities, Harrison said.

But some time before September, 1995, more than $1 million (U.S.)
disappeared after it was discovered by customs agents at Pearson,
investigators said.

Instead of turning the cash over to the RCMP, money was spirited out of the
airport, police said.

Some of it was deposited in more than 30 bank accounts in Greater Toronto.

Additional funds were transferred out of the country and deposited in
overseas banks.

``It is alleged that, during the course of his duties, a customs officer
removed luggage containing in excess of $1 million,'' Harrison said. ``We
don't know if it was in one single suitcase or several.''

Investigators don't know for certain who shipped the money originally,
Harrison said.

``Our suspicion is that it was drug money and it was likely going back to
Colombia.''

Vincent Paul Maltais, 40, of Milton is charged with breach of trust, theft
over $5,000, possession of proceeds of crime, laundering the proceeds of
crime, conspiring to launder proceeds of crime and other criminal offences.

Kevin Berry, 39, of Toronto is charged with breach of trust, laundering
proceeds of crime, conspiring to launder the proceeds of crime and other
criminal offences.

Also facing criminal charges related to this case are Paula Seidenkranza,
44, of Milton (wife of Vincent Maltais); Paula Hillson, 42, of Toronto
(common-law wife of Kevin Berry); Michael Gerald Maltais, 37, of Flesherton
(brother of Vincent); Donald James Maltais, 34, of Brampton (brother of
Vincent) and Paul Denis Sullivan, 34, of Brampton (cousin of Vincent). 
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