SASKATOON, Sask. — A Saskatoon judge has ordered the forfeiture of only a set of uninstalled kitchen cabinets from a long list of property seized in a cannabis-trafficking investigation.
Saskatoon Provincial Court Judge Quentin D. Agnew ruled that the Crown failed to prove most of the disputed items were either proceeds of crime or offence-related property in the case against Daniel Liviu Zanc, who pleaded guilty in 2020 to firearms offences, possession of cannabis for the purpose of trafficking, and proceeds of crime over $5,000.
“In my respectful view, the Crown must still establish that the property for which it seeks forfeiture falls into one of the categories explicitly set out by Parliament – in this case, either offence-related or proceeds of crime – and not that it carries separately some odour of criminality by association,” said Judge Agnew in his Sept. 15 decision.
A six-year delay
The charges stemmed from a police investigation that ran from September to December 2019. Saskatoon Police Service officers uncovered what the court described as a “very substantial drug operation.” Zanc shipped almost $2 million in cash to British Columbia during that period, and police seized over 500 pounds of marijuana along with lesser amounts of other drugs, with a total estimated drug value just under $2 million.
Zanc was sentenced in 2020, but the hearing to decide what would happen to the seized property was left, for reasons the judge said, “have never been explained to me,” and the forfeiture matter remained in limbo for nearly six years.
In the meantime, Zanc served his prison sentence and was then deported to his home country of Romania, where he still resides. The Crown recently brought the matter forward.
Most of the seized items were resolved by agreement between the Crown and defence and the hearing only dealt with items still in dispute, including televisions, a Toyota Tacoma, a Yamaha side-by-side, a Ferris mower, cell phones, laptops, USB drives, sunglasses, cash, keys, garage door openings, and cabinetry.
‘Criminally tainted property’ rejected as only ground
Judge Agnew challenged the Crown’s use of the phrase “criminally tainted property,” which the Crown listed as a basis for forfeiture under the Criminal Code and the Cannabis Act. The judge said the term appears in none of the relevant statutory provisions.
The Crown cited the Supreme Court of Canada’s recent decision in R v Nguyen, which repeatedly uses the phrase.
But Judge Agnew said the high court was using it as a “form of shorthand” for the proceeds of crime, offence-related property, and property that is illegal to possess, not a separate ground of forfeiture.
Cabinetry forfeited
The only items ordered forfeited were 24 pieces of uninstalled cabinetry from Zanc’s property. According to the court, the cabinetry was worth about $4,000. Under the Criminal Code, the onus is on the offender to show, on a balance of probabilities, that the property isn’t proceeds of crime.
Court documents show that Zanc’s reported income to the Canada Revenue Agency averaged about $28,000 per year from 2014 to 2017. He also received about $33,000 from SGI in 2013-2014 after an injury that ended his tax-driving career.
“Cabinetry worth $4,000 would be a very significant purchase for someone at that income level even if, to speculate on the basis of no evidence, it was spread over two years rather than one,” said Judge Agnew. “Mr. Zanc’s bald statement that these were part of his purchases that totaled $50,000 is unconvincing, and I find that he has failed to prove, on a balance of probabilities, that the cabinetry was not proceeds of crime.”
Computer items were ordered to be dealt with at a separate hearing with proper notice. The judge said there was confusion over whether the items were seized from Zanc’s acreage or from the property on Hanover Ave. in Saskatoon, which is in a third party’s name and the utilities were paid by a co-accused. There wasn’t enough evidence that Zanc possessed the items or that its possession was illegal.
The judge ordered that no return or forfeiture be finalized until all applicable appeal periods expire. The garage door openers, Dodge key and other keys will be retained by the Crown pending further court proceedings.
ljoy@sasktoday.ca
