J-Tornado police agent says he kept $270K secret from CRA on RCMP advice

A former Saint John restaurant owner, who served as a secret police agent in a high-profile drug operation called J-Tornado, testified Wednesdayhe hasn't disclosed to the Canada Revenue Agencyany of the estimated $270,000 paid to him by the RCMP over the past two years,but said that was the advice he got from police.

"I asked people from the government, RCMPpeople I signed with, and this is what they told me," said the man, whoseidentity is protected by a publication ban.

He has been testifying at the ongoing Court of Queen's Benchtrial of ShaneWilliams, of Smithtown,and Joshua Kindred, of Saint John, who are facingvarious drug possession, trafficking and conspiracy charges.

The co-accused, who are both in their 30s, were among 28 people arrested in September 2014 as part of Operation J-Tornado, a three-year investigationinto drug trafficking in New Brunswick, whichdepended heavily on evidence gathered by the Saint John businessman.

The man, a former friend of Williams, was hired by the RCMPin March of 2014 to help collect evidence on drug suspects operating in Saint John in exchange fora series of paymentstotalling nearly $600,000.

CRA rules unclear

RCMP officers who testified earlier in the trial said the man had been paid in cash during the operation, but seemed uncertain about whether the money he was given was taxable or not.

The Canada Revenue Agency does not list informing for police among the nine tax-free categories on its websiteand an agency helpline called by CBC News provided no clear answer.

You know yourself you are a lying cheat, would you agree withme?-Brian Munro, defence lawyer

"It does not have a clear reference," said an agency representative, following a six-minute search.

Williams's defence lawyer, Brian Munro,asked the man about his criminal past, business dealings, tax records and involvement with police during hiswide-ranging cross-examination on Wednesday.

"You know yourself you are a lying cheat, would you agree with me?" asked Munro.

"I'm being honest now," the manreplied.

Admits criminal past

The man acknowledged that he helped finance the illegal sale of guns with Williams in the early 2000s, sometimes sold cocaine on the side, and on occasion was paid to put Saint John drug dealers in touch with Montreal drug suppliers.

He also admitted to forging New Brunswick drivers licences and social insurance cards to commit fraud,and to not filing tax returns for some businesses he ran.

One of those businesses was an enterprise operating an encrypted cellphone network for up to 50 drug dealers, although the man insisted his own business was perfectly legal.

"This was a criminal enterprise," said Munro.

"No," replied the man.

"All of your customers were drug dealers.You benefited from drug dealing."

"I benefited from the phones," he said.

Not asked to cease criminal activity

The man ran into legal trouble himself in March 2007 and was arrested for not paying a $1,500 fine from an earlier impaired driving conviction and for immigration violations.

He spent 10 days in jail and agreed to become a police informant shortly after that, supplying information on local criminals, including Williams.He said police did not insist he cease criminal activity himself.

"I don't really remember them telling me anything like that," he said.

But Munro suggested the man himself was a much bigger criminal than the ones he was informing on and asked about a trip he and Williams took to Montreal in September 2012.

Montreal trip was for dog, not drugs

Last week,the man told Crown prosecutor Melanie Ferron the two were shopping for a dog for Williams, but Munro said the real reason was so the man could buy fivekilograms of cocaine from his contact for $200,000.

"I'm telling you that never happened.There was no $200,000," said the man.

He also denied running a car theft operation in Saint John or committing immigration fraud by arranging sham marriages for men with local women, including his own marriage in 2008.

"No," said the man."And for the record, I'm still married."

Security in the courtroom remains elevated with plain clothes officersin the public gallery during the man's testimony.

He told court he fears for his safety for what he has done,but drewlaughs from some spectators when he said he had been a law-abidingperson until meeting Williams years ago, while attendinguniversity.

Justice William Grant responded angrily to the laughter and warned hewould not tolerate outbursts of any sort.

"You will be removed and not be allowed to return," he said to those watching.

Cross-examination of the man continueson Thursday at 9:30 a.m.