Application struck out, FIU loses appeal

Attorney Grant Connell is of the view that the appellants in a forfeiture case missed a point in law when they sought leave to appeal a magisterial decision.{{more}}

The Eastern Caribbean Appeal Court last week upheld Connell’s application to strike out the Financial Intelligence Unit’s (FIU) appeal in a forfeiture hearing in which Senior Magistrate Donald Browne ruled on March 16, 2012, that Tex Frederick earned US$67,540 (EC$180,331.80) legitimately.

“The application by the FIU was based on emotions and not founded in law. They misinterpreted The Proceeds of Crime and Money Laundering Act, Cap 181 of the revised laws of 2009. It’s draconian as it stands; if you lose then you lose and accept that,” Connell told SEARCHLIGHT.

According to the attorney, the appellants applied to the appeal court, which was the wrong jurisdiction. “They had no right to appeal. They brought in the Attorney General and it was an oversight. It is just a storm in a teacup…,” Connell added.

He added that the Act does not provide for such an appeal and that the FIU misinterpreted that law. He also stated that the appellants should have not gone any further with the matter after his client, Frederick, showed the origin of the money.

Fortunately for them (the FIU), Connell said, the issue of cost was not pushed because “if you push the issue of cost against the state, it’s we who are lawyers who pay these taxes, whose money have to turn around and pay me. That is the reason why minimal cost was given…”

At the forfeiture hearing at the Kingstown Magistrates Court, the FIU had made an application for forfeiture of the money on October 8, 2010, after local Coastguard personnel, while on patrol in Vincentian waters, stopped the speed boat ‘Blue Sky’ and carried out a search. During that search, the money was discovered in the engine of the boat.

Magistrate Browne, in his ruling, agreed with the deposition made by Frederick’s former employer Arnold Hughes of Anguilla, who said Frederick worked as a plumber and collected between US$1,000 and US$1,500 per week.

Frederick, while under cross-examination by Sandy, had told the court that he was going to purchase a boat he had never seen from a man he had never met in St Lucia. He said he placed the money in the engine because of the threat of pirates on the seas.

From 2006 to 2010, Frederick said he worked nearly 23-hour days doing different jobs.

Also appearing with Connell was Queen’s Counsel Carlyle Dougan, who reiterated Connell’s points. “Mr Connell only took $500 cost. My cost would have been between $5,000 to $10,000. I told the court that, but for some silly reason known only to Mr Connell he told the court he would take $500,” Dougan said.

Meanwhile, attorney, LaTeisha Sandy, representing the FIU said the appeal was necessary in order to ventilate the issue and seek clarification on the matter.(KW)