Mike on Crime (7 page)

Leinburd told court it was ironic that such an elaborate criminal network was brought down by something pretty benign. Just days before the massive CIBC heist, a Wal-Mart employee took down the license plates of two suspicious vehicles parked near the bank property. His information proved invaluable for police, who traced the vehicles to Avis Rent-A-Car and Gerald Blanchard. Blanchard later dumped the vehicles—which the company had reported stolen when they weren't returned—and police found a fingerprint that matched. They also found two adult diapers inside that Blanchard apparently used during extensive surveillance he was conducting.

Oliphant was stunned to learn that Blanchard would have made such an amateurish mistake. “Pretty dumb leaving that car sitting there in your name,” Oliphant said to laughs from the packed courtroom, which included all of the police officers who worked exhaustively to bring him down.

Blanchard admitted to a pair of similar heists in Edmonton that netted him over $60,000 in 2002. He would typically enter either by picking locks or crawling his slim frame through the air-conditioning ductwork. He'd rely on all kinds of electronic equipment, including night-vision goggles. He also became a master of disguise, and identity theft, repeatedly passing himself off as someone else. He often created bogus identification such as passports, driver's licences and even VIP passes which allowed him access to concerts and sporting events. He was set to try a similar robbery in early 2007 in Chilliwack, BC and believed he would be able to get at least $800,000, court was told. However, Blanchard somehow became aware police were monitoring his conversations and actions and called off the planned heist at the last minute.

The true “gem” of the police investigation involved recovering the Koechert Pearl Diamond from Blanchard's grandmother's house in Winnipeg. He had told police about it, then led them directly to the basement, where it was hidden in a hollowed-out piece of Styrofoam. No one had been charged with the theft. Blanchard admitted to possession of stolen goods. Leinburd said the item was valued at about $10,000 but was priceless to Austrians because of its connection to royalty. “The police would not have been able to find the diamond if not for the co-operation of Mr. Blanchard,” said Leinburd.

In subsequent interviews not admitted in court, Blanchard would give a detailed description of how he personally stole the jewel after getting into the castle while posing as a tourist. He spun an elaborate tale of parachuting out of a plane, landing on the grounds of the castle and then eventually defeating a sophisticated security system to snatch it. There were many who doubted his claims, which couldn't be independently verified. After all, this was a man who'd made quite the career out of lying and deceiving.

Blanchard's other crimes included using electronic “writers” and high-tech computer hardware to copy the data from existing credit and bank cards to make duplicate, usable replicas, court was told. Blanchard and his associates would also steal expensive electronics, then return them to stores using fake receipts they had created and make off with the cash in what is known as “rehashing.”

Leinburd told court “this is a true plea negotiation” as a trial would have lasted at least a year and involved more than 60,000 documents. Police also made 120,000 telephone intercepts and would have had to call witnesses from across Canada and beyond.

“You're no hero Mr. Blanchard but you could have made this a lot more difficult,” said Oliphant.

Blanchard agreed to liquidate his assets in BC, which would net around $500,000 and be paid to the banks he defrauded.

“He could have been a successful and lawful entrepreneur,” said Leinburd. “Instead he chose this route. And now he must pay for it.”

Blanchard was given two years of credit for his time already spent in custody, then sentenced to an additional six years in prison. He would be eligible for parole in two years. Seven co-accused remained before the courts, although Gunn hinted that many charges could be dropped now that Blanchard had taken responsibility.

Some were calling him Canada's version of Frank Abagnale, the legendary American con man portrayed by actor Leonardo DiCaprio in Hollywood's
Catch Me If You Can.
But Gerald Blanchard wanted to ensure that future high-tech criminals would be draw comparisons to him, not some relic from the past.

He had just ended his criminal case by cutting a deal with justice officials and pleading guilty and he was speaking out publicly for the first time, telling the
Winnipeg Free Press
he wanted to come clean to make up for all the pain he'd caused to loved ones while leading his globe-trotting double life. First up: Putting to rest any suspicions his family knew what he was doing. Blanchard said that was absolutely false, and he felt especially bad about dragging his Winnipeg grandmother into his mess. It was in her west Winnipeg basement that he stashed the Koechert Pearl Diamond.

Blanchard also claimed he'd had extensive chats with police and bank security officials about how he was able to defeat their ATM security systems.

“They [banks] should hire him and pay him a million dollars a year,” Associate Chief Justice Jeffrey Oliphant had said upon being given the facts of the case.

“That has been discussed,” replied Crown attorney Sheila Leinburd.

Winnipeg police had actually created a three-hour multimedia presentation based entirely on Blanchard that they showed to local security officials. “He's a very charming individual, not of the same ilk as a lot of other criminals we see,” said police Insp. Tom Legge.

At his sentencing hearing, court was told Blanchard was diagnosed with dyslexia as a child, but as an adult had overcome that to develop an almost “encyclopedic” knowledge of electronics and surveillance. He was born in Winnipeg but immediately given up for adoption by his parents. He moved to the United States at the age of seven with his adoptive mother.

“His mother says that as a toddler, he could take anything apart,” said defence lawyer Danny Gunn. He called his client a soft-spoken, highly intelligent and extremely polite man who has many layers—including a penchant for donating toys and other gifts to charities for children. “I'm not saying he's Robin Hood. But there's more to this complex and complicated individual,” said Gunn.

As part of his plea bargain, Blanchard was hoping to be transferred to a minimum-security prison in British Columbia where he could be close to his girlfriend Lynette Tien, who was currently before the courts as a co-accused. Blanchard was actually charged earlier in the year with plotting to kill Tien while behind bars following his arrest—but the Crown dropped it based on a lack of evidence. Blanchard told the
Free Press
that so-called plot was cooked up by two inmates with whom he was in custody so they could get favourable treatment from the Crown on their own charges. “The police quickly realized it wasn't true,” he said. Blanchard said he and Tien planned to marry while he was still in custody.

“He's looking forward to serving his time, putting this behind him and moving forward with his life,” Gunn told court.

“I think you have a great future ahead of you if you wish to pursue an honest style of life,” said Oliphant. “Although I'm not prepared to sign a letter of reference.”

FRIDAY MARCH 7, 2008

The group had worn burkas to avoid detection from surveillance cameras. They had duped banks out of millions of dollars, held police at bay for years and used their electronic wizardry on victims around the globe. Yet the Canadian-based Blanchard criminal organization nearly came unglued thanks to the most unlikely of foes—the airline industry. A piece of luggage containing a king's ransom—$50,000 in cash, some diamonds and a few hundred stolen credit cards—somehow got lost when one of the accused was attempting to fly from Egypt to Africa.

The missing suitcase has never been found. The owner, Balume Kashongwe, pleaded guilty to fraud and participating in a criminal organization. He was the second accused to admit wrongdoing, following in the footsteps of his fearless leader, Gerald Blanchard. Kashongwe, 35, was sentenced to two years of time already spent in custody under a joint agreement between Crown and defence lawyers. He was set to be released from jail later in the day and planned to resume living in British Columbia, where a job in the forestry sector awaited. Kashongwe admitted he helped Blanchard steal an estimated $250,000 from several banks in Cairo in late 2006. The money was then funneled to the mysterious London-based man called “The Boss” and used to finance terrorism in the Middle East.

Blanchard, Kashongwe and four others spent 10 days in Egypt and used data from 633 stolen credit cards to access various bank accounts. Kashongwe was supposed to leave Cairo and go to Africa to continue the thefts, but stunned Blanchard when he called to report his suitcase had gone missing during his travels. The money and diamonds inside were destined for the British boss, forcing Blanchard to scramble and pay the man out of his own pocket.

Kashongwe met Blanchard in BC several years ago while they were neighbours, court was told. Kashongwe was a trusting man who came to Canada from the Congo in 1987 and was looking to make new friends. But he quickly got “in over his head” and didn't realize what Blanchard was involved with, his lawyer said. “He's now learned that if something sounds too good to be true, it probably is,” Kathy Bueti told court.

Provincial court Judge Kelly Moar told Kash­ongwe the fact his criminal actions indirectly helped terrorist activities was a major concern. “When these attacks occur, innocent people die. That money being obtained by yourself and others was used to do that,” Moar said.

WEDNESDAY SEPTEMBER 24, 2008

Lynette Tien had great taste in fashion. But the Vancouver woman apparently didn't have the same good sense when it came to men. Tien, 23, had just pleaded guilty in Winnipeg court for her role in the criminal operation run by her boyfriend, Gerald Blanchard. Tien admitted she helped Blanchard with some of his crimes—including returning stolen goods to electronic stores using bogus receipts—but wasn't considered a top player in the organization, court was told.

“She's learned a big lesson and is going to be a lot more careful with respect to what she does and who she becomes affiliated with,” said defence lawyer Roberta Campbell. Tien would be allowed to serve her conditional sentence in BC, where she worked as a model and actress while also attending university.

Blanchard's cousin, Dale Fedoruk, had also pleaded guilty to his role and was given a 21-month conditional sentence. Fedoruk, 36, admitted to accepting a high-powered delivery from Blanchard that included an assault rifle, two handguns and 1,000 rounds of ammunition. Winnipeg police learned of the shipment through telephone wiretaps in late 2006 and early 2007, court was told. It's not clear what the weapons were intended for.

“You got yourself in quite a jackpot with your involvement with Mr. Blanchard,” said provincial court Judge Kelly Moar.

WEDNESDAY APRIL 8, 2009

It started as a friendly relationship with a customer —and ended with his involvement in an elaborate international fraud ring. Now, Edmonton businessman Lance Ulmer had admitted to his role in the Blanchard Criminal Organization. He was the fifth accused to admit wrongdoing. Ulmer, 40, was given an 18-month conditional sentence following a joint recommendation between Crown and defence lawyers. He admitted to allowing his Edmonton mailing and shipping company to be used in a series of financial crimes committed across Canada and around the world.

Lawyers told court Ulmer was “seduced” into a world of crime by the charming and savvy Blanchard but never realized the scope of the criminal activity. “He has now learned to keep an arms-length from his clients... to be more suspicious of those who ask for his services, to ask more questions, and to sever relationships with clients he has suspicions about,” said defence lawyer Shawn Beaver.

Ulmer was the final member of the “Blanchard Criminal Organization” to face the music. His guilty plea had closed book on one of Canada's most unusual crime cases, with all remaining charges being dropped by the Crown.

G
erald Blanchard's initial return to society was relatively short-lived. He was released on day parole in 2009, only to have prison officials revoke his freedom in 2010 and put him back behind bars. There were concerns Blanchard was on the road to getting re-involved in fraudulent financial activities. The parole board's decision highlighted concerns over Blanchard's history of falsifying documents, and the fact that he was “continuing to push the boundaries” of his supervision. They also noted he showed a “low level of remorse” for his actions. Blanchard had attempted to volunteer for the 2010 Vancouver Olympics, but was told he could not attend any Olympic venue, celebration or event after it was deemed risky due to his history of “manipulation for personal benefit.”

In their original decision to grant him early release and allow him to live at a Vancouver halfway house, parole officials expressed hope that Blanchard was on the right path. They even noted he likely had a future as a security consultant, something that had been hinted at years earlier during his sentencing hearing.

Blanchard was given a second shot at freedom in April 2012. He's apparently taking this a bit more seriously, as there is no record of any breaches. He remains free in the community, living in British Columbia and keeping a relatively low profile. In documents, the parole board referred to what they called his “long-term positive plans.” But they were keeping him on a relatively tight leash, restricting his access to computers and cellular phones and also requiring him to report all financial activity.

There was also mention of a possible movie in the works about his crime spree.

Pass the popcorn.