Ontario prosecutors struck out in trying to convict members of an alleged gambling ring, but are hoping for better results in their attempt to keep $40 million in seized assets.
The first step was last Tuesday when Susan Keenan, a lawyer for the Ministry of the Attorney General, argued that Ontario should keep $270,000 from Dimitris Kellesis, a man associated with the group.
“There is overwhelming evidence that there was unlawful activity occurring,” Keenan said at a Superior Court of Justice hearing. “The bulk of the money found in his bedroom is directly connected to and was derived from that illegal activity. There is nothing else that can explain this amount of money” and “no credible or reasonable explanation.”
Luci Brace, the lawyer representing Kellesis, said no evidence existed linking her client to the alleged ring, and he and his family had reasonable explanations for the cash.
The cash came from gifts, loan repayments and savings over years of work in a family raised to distrust banks, Brace said.
“Forfeiture would clearly not be in the interest of justice,” Brace said. “The proceeds are not proceeds of crime or unlawful activity. He is a legitimate owner.”
Justice Michael Dineen reserved judgment after the two-hour hearing.
The Kellesis hearing was the first of what should be many. Police said the money seized was what they claim was the biggest illegal online sports betting operation in Canada.
Despite the statement, however, prosecutors were unable to get meaningful convictions against the 28 people in what police called Operation Hobart. The two-year investigation centered on the Hells Angels and a Toronto crime syndicate.
Police alleged that the group operated14 sports betting websites and took in more than $160 million in six years before it was shut down and the $40 million seized.
Despite bringing 228 charges against the group, prosecutors were only able to get fines, peace bonds or probation.
The ministry said in its court application that they intend to try and keep the held funds.
“The test to keep the assets is not proof that a particular person committed a particular offense,” the ministry said in its court application. “The proceeds analysis is centered on proving that the property itself is associated with unlawful activity.”
