Pubdate: Mon, 05 Jul 2004
Source: Vancouver Courier (CN BC)
Copyright: 2004 Vancouver Courier
Contact:  http://www.vancourier.com/
Details: http://www.mapinc.org/media/474
Author: Mike Howell

UNDERCOVER COP GETS EYEFUL AT AMERICAN HOTEL

An undercover Vancouver police officer sitting inside the American Hotel on 
Main Street, near the Main Street SkyTrain station, said he watched stolen 
goods sold openly at a table of a dozen people.

The officer's report was part of a three-month probe into drug dealing and 
other illegal activity at hotels, pawn shops and grocery stores in the 
Downtown Eastside. The probe included the American, which despite being the 
subject of previous drug busts, continues to operate as a business.

"I cannot emphasize how much stolen property is sold inside this 
establishment," the officer wrote in a report, parts of which were released 
at a police news conference last week.

"This large table of 12 people are here for one reason, and one reason 
only-to buy stolen property. The staff is all aware of this and make an 
effort to ignore it. Drugs are sold... at an amazing rate. I have observed 
15 drug deals take place in 30 minutes. This goes on all day long."

He notes the dealers sit in "up-down" chairs-"up" for cocaine, "down" for 
heroin-and use an "employees only" door, which leads downstairs.

The undercover officer's observations were part of many police made during 
Project Lucille, which culminated June 23 with the arrest of 29 people on 
more than 40 charges. Police targeted the American and several other 
hotels, pawn shops, corner stores and one grocery store.

Police forwarded their evidence to the city's legal department, and expect 
several of the businesses, including the American, to lose either their 
liquor or business licences, or both.

The American has been the target of two other major drug probes since July 
2002. But the hotel-which received a 24-hour closure after the recent 
bust-continues to operate.

This time, Insp. Bob Rolls said, police expect their evidence will form an 
overwhelming case for city staff to shut down the hotel's pub, and possibly 
the hotel itself.

"We are going to shut it down, and I don't care-even if they don't accept 
this project, that's not the end of it, as far as I'm concerned," said 
Rolls, commander for the Downtown Eastside. "Then we'll come up with 
another strategy and we'll do it a different way."

The recent probe follows a major two-month investigation conducted by the 
department's drug squad in June and July 2002. At the time, police said the 
American was home to one of the major distribution centres for cocaine in 
the Downtown Eastside.

In Project Prism, police seized 40 rocks of crack cocaine, 40 flaps of 
cocaine powder, $10,000 in cash and arrested four males inside the hotel's 
pub and three rooms.

A year later, in August, Vancouver RCMP announced the arrests of 12 men, 
including an alleged Hells Angels' associate, for alleged drug dealing 
connected to the American Hotel.

The two-year probe found that the Hells Angels' associate allegedly ran a 
sophisticated drug trafficking operation from the American, renting three 
rooms under different names.

Police arrested the suspect as he stepped out of his blue 1997 Mercedes 
Benz at the back of the American, according to an application for a search 
warrant filed in court.

Despite the series of busts, the hotel's business licence has not been 
reviewed by the city. Barb Windsor, the city's deputy chief licensing 
inspector, said she didn't receive police reports from the two earlier busts.

Council needs evidence in order to consider revoking a licence, said 
Windsor, noting, however, she is expecting to receive documents related to 
Project Lucille.

"When I get that evidence and that material... if that is the case, that 
there is drug dealing, then we'll be taking action," Windsor said.

It isn't clear why evidence from Project Prism or Project Ecru didn't make 
it into Windsor's hands, but Rolls said "we should have dealt with [Project 
Prism] a little bit differently at that time, I think."

Insp. Ken Frail, who managed Project Lucille, said shutting down a hotel 
and its pub is difficult because many times the owner who is under 
investigation has a different name listed on the liquor licence than the 
one recorded on the business licence.

Police are recommending the licences be connected, but admit names on the 
licences are often difficult to trace back to the actual owner-the root of 
the problem.

"The people who are down on the paper for owning it, don't even own it in 
the first place, then they put in somebody else's name and then they apply 
for a licence," Rolls added. "That ends up just being a killer for us."

For many years, 471139 Ltd. owned the hotel and pub, but was sold in 1999 
to GSO137 Ventures Ltd. A message left at the pub Wednesday for the owners 
was not returned to the Courier.
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MAP posted-by: Jo-D