3-year sentence in Operation Battalion cocaine probe

A St. John's resident has pleaded guilty and been sentenced in the wake of a high-profile cocaine investigation. One that saw the father of a Newfoundland-born NHL player and another man arrested in a Montreal airport with $300,000 in cash hidden in the lining of two suitcases.

Leroy Thomas, 40, pleaded guilty Monday afternoon to money laundering, possession of cocaine for the purpose of trafficking, and possession of a prohibited weapon — a set of brass knuckles.

The Crown withdrew a number of other charges against Thomas.

According to an agreed statement of facts read at his sentencing hearing, police began investigating Thomas, Kurt Churchill of Portugal Cove-St. Philip's, and others in 2013 after receiving information from sources that they were "high-level cocaine traffickers."

The Combined Forces Special Enforcement Unit-Newfoundland & Labrador (CFSEU-NL) had Thomas and Churchill under surveillance for six months before their arrests. The police intercepted cell phone traffic and bugged vehicles.

Arrests made in March 2014 

The investigation culminated on March 14, 2014.

Air Canada, compelled by a court order, informed police Churchill and Anthony Clowe were flying to Montreal from St. John's that day.

Officers tracked the two men to the airport and searched two checked suitcases that had their names on the tags.

According to court documents, investigators found three vacuum-sealed bundles of cash, all in $20 bills, concealed in the lining of Clowe's suitcase. The total amount of money found was $149,880.

Clowe is the father of NHLer Ryane Clowe. Ryane Clowe is not implicated in Operation Battalion.

The police found another three vacuum-sealed bundles of cash in Churchill's suitcase, totalling $150,090.

Investigators allowed Clowe's suitcase to continue on the flight to Montreal, but seized Churchill's bag.

When the plane landed in Montreal, Churchill went to Air Canada to report his suitcase missing. Local police arrested the duo for money laundering. Each man also had more than $10,000 in cash on them at the time.

According to the agreed statement of facts in the Thomas case, Churchill declined to communicate verbally with police officers, instead opting to answer questions with a pen and paper. He could not explain why he was in possession of so much cash, but later indicated he was in Montreal to look at hybrid vehicles for his taxi company.

Unaware of suitcase's contents

Clowe told Montreal police that he and Churchill were business associates who were travelling to celebrate St. Patrick's Day. Clowe said the $10,000 cash in his pocket was for the casino. He also told the officer that Churchill had asked him to check one of his suitcases for him, and Clowe had no idea what was inside.

At one point during the interview, according to the agreed statement of facts in the Thomas case, Clowe and the Montreal RCMP officer went outside the interview room for a cigarette.

Clowe then told him "there was obviously a lot more going on," the court documents note.

"Furthermore, Tony Clowe advised that an individual named Alladin was supposed to pick them up at the airport in a black Mercedes-Benz. Tony Clowe said that he had business to do with Kurt Churchill in Montreal but would not say what it was. Tony Clowe said that he never should have gotten involved with Kurt Churchill as he knew it was bad from the beginning. Tony Clowe said he would rather go to jail than rat on anyone as he does not want to put himself and his family in danger."

Clowe and Churchill were released that day, but later charged.

Clowe is facing counts of money laundering and possessing property obtained by crime.

Churchill is facing those charges and a dozen others, including weapons-related offences and conspiracy to traffic cocaine.

Both men have pleaded not guilty.

A preliminary inquiry is underway in the Clowe and Churchill cases at provincial court this month.

Fingerprints found on vacuum-sealed bags

According to court documents, RCMP forensic officers in Montreal examined the vacuum-sealed bags of cash seized from the suitcase carried by Clowe.

The officer located two fingerprints belonging to Thomas on two of the vacuum bags.

Back in St. John's the same day last March, police pulled over Thomas at a traffic stop, arrested him, and descended on his Logy Bay Road home.

The police seized a 9-mm pistol, ammunition, a vacuum sealer and bags, scales and 11 ounces of cocaine.

He's very sorry he ever got involved in this.- Jack Lavers, lawyer for Leroy Thomas

Thomas declined to speak at his sentencing hearing Monday, but defence lawyer Jack Lavers apologized on his client's behalf.

"He's very sorry he ever got involved in this," Lavers told the court.

Lavers and Crown lawyer Brenda Boyd made a joint sentencing submission of three years, minus the 95 days Thomas has already served in custody.

Judge Mike Madden accepted that recommendation.

Madden noted that sentencing principles require him to send a message of "denunciation and deterrence" in cases such as this one.

But the judge acknowledged that Thomas was a first-time offender who pleaded guilty at an early stage of proceedings, and was further down the pecking order of the operation, citing the fact that his home was used as a stash house.