There has been a new case surface in the last week or two, which caught the attention of these tired old eyes. It was when the RCMP made a grand national pronouncement that they had arrested and charged an ex-Mountie; William “Bill” Majcher , with two counts under Sections 22 and 23 of the little used Security of Information Act.

The story caught my attention on a number of fronts. First, I knew of Mr. Majcher, but only in passing; secondly, the investigation was done by the Integrated National Security Enforcement Team (INSET), and it was the INSET unit in Quebec, even though it very much sounded like the offences occurred in British Columbia. That seemed a little unusual and could only mean that there were others involved and there was a trust issue. For those that needed to be reminded, INSET is the RCMP agency which is the direct liaison with CSIS (Canada’s spy agency). Therefore one must always be aware that CSIS and thus INSET often work on “political targets”, and therefore their mandate is often at the direction of the government or with the approval of government. There is little to no police independence when talking about either of those entities. So we should also keep in mind that old adage that “one mans terrorist is another mans freedom fighter.”

With this in mind, China and its alleged political interference in recent Canadian elections has been a dominant story and pre-occupation for the last few months in Canada’s mainstream media. The Liberals have been under a great deal of political fire for their handling of the information surrounding the election interference, and their lack of investigation of it. So it seemed slightly more than coincidental that this case against Majcher was brought to the forefront in terms of its timing, and the obvious question as to whether it was being done to ease the pressure on the Liberals. Adding to the suspicion, is that these cases were historical, in that they occurred sometime during the years from 2014-2019. They also had said that this particular investigation had nothing to do with the alleged election interference. INSET says that their investigation surfaced as a result of a “complaint” in 2021, and now in 2023 they were bringing forth charges.

The accused, Mr. Majcher, was a Mountie from 1985 to 2007, some twenty-two years, and “retired” from the Inspector rank from the now defunct Integrated Market and Enforcement Team (IMET); an investigative group which had been mandated to investigate criminal activity in the Vancouver stock exchange and other financial markets. I met Mr. Majcher when he was the Inspector in charge, and we met out of necessity as he was the overseeing officer for an internal investigation that I completed on a Vancouver Police Department matter. He didn’t really pay much attention to the details of my report and signed off the investigation with little to no question. My first impressions of Mr. Majcher stand out now– and have been echoed by many people who knew him during his career. He began by showing me around his rather sumptuous office down on the Vancouver harbour front, and it was impressive from any government employee perspective, with its two storey high windows and its unhindered view of the moneyed yachts. It all turned out to be part of his pitch to me to come to their section, as they were looking for an experienced team leader/primary file investigator at the time.

He was a pretty impressive salesman about the job, but he was an obvious salesman, in that stock broker, car salesman kind of way. I later found out that before joining the RCMP he had in fact been a Eurobond trader. (Eurobonds by the way were one of the first tools developed and marketed to aid in the hiding of funds offshore) He was also clearly intelligent, but his flaw may have been in believing that he was always the smartest person in the room. He was always talking, but not overly concerned with listening. I considered the job at the time because of my interest in economic crime (much cleaner than homicide), but then turned it down after researching it a bit, and learning that the section was having trouble getting their feet off the ground, due to a variety of reasons and legal complications.

As it turned out, Mr. Majcher later got himself in some hot water while with IMET, and he became the subject of an internal investigation in 2005. I was told at the time, that it had something to do with his continuing involvement in the stock market, but I never heard the full story. In the end, presumably rather than face further investigation he “retired”– the always tried and true option the Mounties go to when handling troublesome employees. The public material says that Mr. Majcher in 2006, had already moved to Hong Kong– clearly never one to let the grass grow under his feet.

Like every ex-Mountie who is looking for a double-dipping job, and populate LinkedIn, Mr. Majcher talked up his previous investigational work experience and touted himself as an extraordinary undercover officer who continually risked life and limb in pursuit of the bad guy. His resumé was clearly bloated, but Mr. Majcher in fact did do a good job as an undercover operator on a couple of investigations. In the roles he played he was always portraying “the money guy” — always the salesman. His most famous case was that of the case against Vancouver lawyer Martin Chambers in the late 1990’s. Mr. Chambers during his hey-day was a prominent Vancouver lawyer who was suspected of large scale money laundering for the Russians and the Hells Angels. During a staged video-taped meeting in Florida with Mr. Majcher playing his role of financial underworld figure, Mr. Chambers took possession of $700,000 cash, and provided offers to handle millions of dollars. Mr. Majcher was the primary undercover officer and had led Chambers to believe that he monies were coming from the Columbian cartels at the time. It was a joint FBI-RCMP sting, and it was successful, and Mr. Chambers was sentenced to 15 years and 8 months which he served in an Arkansas jail.

The Chambers case would be the case that Mr. Majcher seems to have used as his plank to build a spring-board into a position in Hong Kong. He described himself as a “risk assessment officer” for the investment banking community, and that he had moved there to “establish an international banking platform on behalf of Hong Kong merchant bank, representing a number of Chinese state owned and non-state owned enterprise clients engaged in overseas capital world activities”. Not only would he bring to the table his extensive investigational expertise, but they would be able to employ “military grade cyber technology” in the pursuit for their clients.

He later formed the company EMIDR in 2016, a “Hong Kong based cyber-security company”. In a video he described himself as “a hired gun to help either large corporations or governments to get back what is rightfully theirs”.

Now most of us can see the salesman oozing out of these marketing pronouncements. But, despite the clear aggrandizement of his capabilities and the obvious exaggeration as to what they could bring to the world of money laundering, nevertheless, Mr. Majcher was indeed tapping into or at the very least trying to tap into a potential gold mine.

And this is where it all gets rather complicated.

It gets complicated in terms of the story line, and it gets complicated in the list of characters who may be playing in the game. First and foremost, this story is about money laundering, at least on the surface. But it is also about the many layers and degrees of inherent corruption. It is a fact that mainland China has had numerous individuals remove monies from their country, contrary to their own laws, as well as ill gotten gains that were taken out of the country from illegal activities. By any measure it is estimated that they have lost billions of dollars over the last number of years. And as you guessed, there have been a few select countries which these suspect individuals have turned to in order to facilitate the laundering of those funds. One of course, high on the list, is Canada, and specifically Vancouver. (do you remember the Cullen Commission?) Another area was along the “Gold coast” of Australia and the city of Melbourne. Their were other locations of interest to these monies seeking a home and the luxury of anonymity such as New York and Chicago. Hong Kong which was a city designated as a special administrative region of China, was heavily involved in the movement of those monies wanting to escape from China, due to its geographic proximity and the lack of foreign exchange controls.

The people who have orchestrated these money movements are now considered by the Chinese government to be criminals. As a result China started two projects; Sky Net in 2015 and Project Dragon in 2019, to track down and try and get back those monies. The latter project focused on the gold coast of Australia and those funds that were being used to purchase real estate. China of course, as Majcher himself stated in an interview, needs to “walk a very fine line”, as to the perception of anyone working for a foreign government. So China smartly formed public/ private partnerships with various firms, who would assist them in tracking down individuals and finding the monies. As expected they went to those with knowledge of the host countries who advertised themselves as having “expertise” in that country along with their “investigative resources”. Enter Majcher and other similar firms, especially those firms staffed by ex-police officers. Mr. Majcher openly said during a television interview that “I have a commercial relationship with entities that are in themselves associated in some form or another with policing authorities in China”.

Of course, most of these ex police officers who have entered this private field, have little or minimal hands on experience, they are primarily being hired because of their “contacts” in policing. Mr. Majcher is not a cyber expert, smashing the keyboard, hacking the demographic data sites to find someone; he is likely just picking up the phone and calling persons in the policing world who do have that information at their finger tips, and are willing to assist them in finding people. Mr. Majcher worked for the most part in British Columbia, ergo his contacts will be in British Columbia and in particular Vancouver, this hot bed for Chinese money laundering in Canada.

Two ex-Aussi police officers, Jason McFetridge and Austin Whittaker, in the Melbourne Australia area who had a similar firm to Mr. Majcher were interviewed about how the plan to recover the funds would come about and how it would be executed. Both maintain that it was a completely legitimate pursuit to get their client’s money back. It was a simple plan, but one that bordered on extortion. They would identify the people with the apparent illicit funds, confront them, tell them they are on to them, and that they needed to sign over their properties to the ex-police officer company. They in turn would then sell the company and send the monies back to China for a fat commission. The obvious inference, should the accused not “voluntarily” sign over the money, was that there would be repercussions for their families back in China, or telling them they face jail time if they ever return to China etc.

Does China have a right to pursue criminals and money launderers? It would seem legally justifiable, but what becomes questionable is of course how they go about it. Do they have the right to have hired personnel threaten people and insinuate sinister repercussions–that strains legality. It would have to be at the very least an inference and not a direct threat. The Skynet project apparently identified over 3,000 people that the Chinese government felt had broken their laws.

It would be easy to say the Chinese are wrong, and this is a step gone too far. And of course, what if the people they are pursuing are not criminals?

Historically Canada, and in particular Vancouver, has a very murky bordering on sinister relationship with communist China.

In 2015 China tried to sign agreements with the CBSA and the RCMP to assist them in pursuing their people of interest. In the late 1990’s Lai Changxing was considered “China’s most wanted fugitive”, a man who had been implicated in several corruption scandals in China involving a large smuggling ring. He evaded arrest and settled in Vancouver, where he was arrested by Canadian authorities, went through a long extradition battle but eventually was sent back to China in 2011, where he was given a life sentence. So at one time, the Canadian government was participating in the very same thing.

There is the Meng Wanzhou matter where a high ranking member of the Chinese establishment and the Chief Financial officer for Huawei was arrested in Vancouver, on behalf of the Americans and was facing extradition. China retaliated by arresting two innocent Canadians as “spies”, Michael Spavor and Michael Kovrig. Meng eventually reached a “deferred prosecution agreement” with the Americans, the charges were dropped, and she was returned to China after having been under house arrest for close to three years. During this time she was given VIP protection to and from court by the Lions Gate Risk Management group, a group also filled with many ex-police officers who also advertise their specialities in “Money laundering and Asset tracing”. Mr. Majcher during this time admits to also being contacted by China looking for some help and monitoring of the case against Meng.

And let us not forget the matter of the ex-Mountie, Ben Chang, who during the Wanzhou hearings refused to testify about his role in the arrest of Meng Wanzhou while an RCMP officer. Since the arrest time, Mr. Chang had turned his old foreign liaison posting with the RCMP in Hong Kong into a retirement job as a senior security officer in the resort casino Galaxy Macau. His last minute refusal cast doubt on the credibility of the government lawyers who maintained that the RCMP did not share any information on Ms. Weng’s computers and mobile phones. Somewhat mysteriously, the prosecutors did not subpoena Mr. Chang. The Galaxy group as it turned out is owned by Lui Che Woo, a Hong Kong businessman who served on the standing committee of an advisory group to Bejing. Mr. Majcher it has been reported to have been at one time Mr. Chang’s supervisor.

INSET has hinted that they are looking at other officers involved in Mr. Majcher’s case. One of the names surfacing is Ken “Kim” Marsh, another ex-RCMP officer, who has written a book about his exploits entitled “Cunning Edge”. Mr. Marsh who has been named as a co-conspirator with Mr. Majcher, but not yet charged, once cooperated with Majcher on cases; and Marsh identifies himself as his “Mountie friend”. In his book Marsh talks about being “hooked up” with Russian millionaire Vladimir Antonov for a “due diligence report” that he charged Antonov $500,000 to prepare. Antonov would later be charged with embezzling “hundreds of millions of dollars from a bank in Lithuania”. Marsh is now seemingly perplexed by his naming in this most recent Majcher investigation. As he says in the introduction to his book, “he gave decades of his life to his work, all in the pursuit of bringing bad guys to justice…for his clients…and society at large”. He doesn’t mention that it was also primarily to make money.

So what are the charges specifically? Section 22 is labelled “preparatory acts” and states in essence that anyone who enters Canada,… or retains or gains access to any information… for the benefit of a foreign entity, a terrorist group, or an economic entity… and then communicates that information to them is guilty of an offence. This section refers back to Section 16, 17, 19 and 20 which get more specific as to whether the information is designed to “harm Canadian interests…or is reckless with that information”. Section 20 deals with using the information in association with a “foreign entity” to “induce, by threat, accusation, menace or violence, any person to do anything or cause anything to be done”. Section 23 is just the “conspiracy” section saying that one can not conspire to do any of the above.

So there is three elements to these offences that need to be proven. Was Majcher working for a foreign entity? Did they obtain information that was being guarded by the government, and finally did they threaten anybody or coerce anybody to take some action on behalf of the foreign entity? In terms of the press briefing by Inspector David Beaudoin they say that the charges surround “preparatory acts for the benefit of a foreign entity and conspiracy”. As stated previously, they began their investigation in the fall of 2021, and it was for the time period of 2014-2019. There are going to be some significant legal hurdles. Does the government of China have the right to pursue persons they consider thieves and money launderers? Are private investigators, indirectly working for the foreign government allowed to make inquiries as to money laundering and attempt to find those persons? America, Britain, Australia and even Canada using various investigational instruments make inquiries constantly for this same purpose. The RCMP and Canada have directly participated in doing the very same thing, but of course they will argue that they and only they are the safe-guarders of that information.

If one is interested in this kind of thing and would like a full view of the extent of the problem, I recommend the book “Moneyland” which the Economist magazine called the “book of the year”, written by British journalist Oliver Bullough. It is a deep dive into money laundering and the people behind it, including the lawyers, bankers and governments that both front face the problem and are part of the problem. The city of Vancouver is featured as a sought after refuge for the kleptocrats from China, Russia, and south Asia and he outlines the number of groups trying to track them down, often frustrated by the lack of government action on the issue. It is such a broad and expansive problem that he argues that it is under cutting the pillars of western democracy.

There is one other aspect of this story that is intriguing. That is the media coverage of this story led by journalists like Sam Cooper changes the motivation behind China. Cooper who is never shy in trumpeting his investigative journalism skills on the subject of money laundering in Vancouver. As it turns out he has admittedly conferred in the past with Kim Marsh on stories such as the Cameron Ortis story; and it would be a pretty easy assumption that he has RCMP sources feeding him information. The interesting part is that his take, and therefore the apparent take of the RCMP is that China is “not interested in getting back their money…only interested in controlling the people in the country”. In other words it is all part of a conspiracy to control the Canadian government through spies and agents.

It is an interesting postulation, but there is little to no evidence to support it. There is no doubt that China has for decades searched out persons and politicians who would speak positively about China and possibly try to influence legislation. While in Security Service in the 1980’s and early 1990’s we were already watching the Chinese operatives in Canada trying to influence politicians. The problem is one of definition. In the U.S. for example, they simply call them “lobbyists”. Here, in this country there is not even a foreign registry set up, so how concerned or worried about it is the Canadian government? In Mr. Majcher’s case, there is much more evidence that China is going after the money, they have always been aggressive industrialists, and there is an abundance of evidence that there that there is a treasure trove of ex- Mounties who are willing to set their flexible ethics aside and give them a hand.

There is politics wrapped around politics in this investigation, and the timing is highly suspicious and of major interest will be who initiated the original complaint. In this new age of ingrained disinformation and when our media seems to have an agenda, it is increasingly necessary to question sources. But, when it comes to unravelling the mysteries of China and its cultural layers, one needs to be very careful indeed. The only aspect of this story that seems to bear out consistently, is that there are apparently plenty of of ex-cops willing to help– for a fee of course.

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