Crown, Keith Hobbs spar in day 13 of former mayor's extortion trial

Crown attorney Peter Keen sparred with Keith Hobbs during the latter's extortion trial on Thursday, using witness testimony and text messages to cast doubt on the version of events presented by the former Thunder Bay mayor.

Keith Hobbs, his wife Marisa Hobbs, and city resident Mary Voss each face one charge of extortion over their alleged attempts to force another person to purchase a house for Voss.

Cross-examination of Keith Hobbs by Keen continued Thursday.

Keith Hobbs told court he didn't give any instruction to Voss about what she should say to police during her interview, as that would be collusion. He did tell her to tell police that she was afraid of Craig Loverin, a friend and supposed bodyguard of the victim. Police needed to know that, Keith Hobbs told Voss.

Court also heard that there were three houses suggested to Voss: one on Onion Lake Road, one on Edward Street, and one on Gemstone Drive.

Keith Hobbs said he became involved in the negotiations about the house purchase in November 2016, and met with the alleged victim on the morning of November 16.

The victim "seemed off," Hobbs told court, and while Keith Hobbs was going to suggest the victim give a home they already owned to Voss, the victim wanted to discuss purchasing a piece of city property behind one of their homes.

Keith Hobbs also testified he felt the victim knew about a series of videos showing them acting erratically; Keith Hobbs had copies of those videos.

The victim then suggested giving Voss cash for a house, and then Voss could get her own mortgage. Voss wasn't in favour of that idea, however, Keith Hobbs said.

Shortly after that meeting, the victim texted Voss and told her they would buy her a home on Edward Street.

However, things took a turn about a half-hour later, Keith Hobbs said, with the victim firing off a series of disturbing texts. The victim agreed to sign documents pertaining to the house purchase, but wanted that to happen quickly.

The victim then sent another series of texts, characterized by Keen as "panicked," and suddenly offered a $1,000 signing bonus for Voss.

Keith Hobbs tells court at that point, things went from "signing these documents to extortion."

Keen agreed, suggesting the change in the victim's tone came due to Keith Hobbs telling them about a series of videos that showed the victim acting erratically; Keith Hobbs had the videos.

Keith Hobbs denied that, saying he hadn't told the victim about the videos at that point.

Keen pressed the matter in court, pointing out that the victim was not concerned with protecting their reputation until after the November 16 meeting with Keith Hobbs.

"He spontaneously generates this fear after the meeting with you and your wife," Keen told Keith Hobbs.

That, Keith Hobbs said, had "nothing to do with us."

Keen refers to dealing with the victim post-November 16 as a "roller coaster ride," with the victim making threats, and questioning the house purchase and who will pay for it.

"I guess you could say that," Keith Hobbs replied, agreeing that the victim did repeatedly change their mind, and extortion was mentioned.

Keen also noted that after Keith Hobbs gave the videos to Loverin, the victim offered Keith Hobbs a loan.

Keith Hobbs, however, turned the offer down, which he told court Wednesday would not have happened if he intended to extort the victim.

The question of whether or not Keith and Marisa Hobbs were motivated by their own financial situation has been raised before.

In videos showing OPP Det. Inspt. Martin Graham interviewing the accused that were shown in court, Graham suggests Keith and Marisa Hobbs attempted to extort the victim into buying a house for Voss, and pressured Voss into accepting it, so Voss could borrow money against the house, and lend it to them.

Much has also been made about Keith and Marisa Hobbs attempting to get a $150,000 consolidation loan from CIBC to pay off credit cards, and the fact that Keith Hobbs worked as a private investigator while serving as Thunder Bay's mayor; court has also heard he asked the victim for a job as a bodyguard, as well.

Back to Thursday's testimony, Keen said the victim was trying to get Keith and Marisa Hobbs a loan at a better interest rate than what the Hobbs' themselves could get.

The victim also offered Keith Hobbs a loan on November 19, after Keith Hobbs threatened them with jail time over criminal allegations, telling the victim "pack your toothbrush and your pyjamas, you're going to jail."

On Thursday, Keith Hobbs disputed the nature of that comment, saying it was a "promise," not a threat.

Hobbs denies making any threats toward the victim.

The matter of a $10,000 cheque the victim offered Keith Hobbs comes up again. Thursday, Keith Hobbs testified that the victim never forced the cheque on him, but was pushy.

Keith and Marisa Hobbs discussed whether or not to cash it. The victim would have to clear it through the bank, first, however.

In the end, the cheque was not cashed.

Sought advice from victim

Keith Hobbs told court his intention as far as his dealings with the victim was to get help on a deal involving CIBC, which Keith Hobbs believed could result in his receiving $2 million.

However, Keen pointed out that Keith Hobbs knew about issues between Voss and the victim as early as October 27, as that's when Marisa Hobbs received a text from Voss alleging the victim had physically assaulted her.

Keen asked Keith Hobbs why he waited until the next month to get involved in the house negotiations. Keith Hobbs replied that by then, he had evidence to bring to the police.

Keen then brought up the final page of the house purchase agreement, which included a non-disclosure clause: if the agreement was ever shared, it would be rendered null and void.

However, Keith Hobbs replied that he didn't want any of the issues involving the victim to be swept under the rug. He said he saw the agreement as a confession by the victim, and it wouldn't hold up in court as a legal document.

In fact, Keith Hobbs intended to void the document later, he said. He wanted to have a contract signed for the house purchase, however.

Voss asked Keith Hobbs not to go to the police with criminal allegations against the victim, but Keith Hobbs testified he had an obligation to report them, court heard.

Still, Keen continued to question the timing, pointing out all the videos and texts Keith Hobbs had were enough to bring charges against the victim; Keith Hobbs, however, didn't come forward until after the house purchasing agreement was signed.

"I didn't think there was a time limit on when I had to come forward with this evidence," Hobbs said.

Keen asked how the document would help with credibility, when there's a "clear financial motivation."

The alleged victim was "driving the bus," Keith Hobbs said.

"Why would you go to the police when you get a free home?" Keen asked. "What person in their right mind would go to the police when there's $429,000 on the line?"

The extortion trial, Keith Hobbs replied, has cost him $500,000. In any case, the housing agreement, Keith Hobbs said, was part of his plan to bring the victim to justice.

Keen said Keith Hobbs brought forward a document with some "pretty powerful" promises and inducements. As a former police officer, Keith Hobbs should have known better, Keen said.

Keith Hobbs retorted he waited to make sure he had enough evidence, as the more the better for an investigation.

As for the meeting with Loverin in a grocery store parking lot, Keith Hobbs testified he gave Loverin a copy of the videos as a "loyalty test," an effort to determine how faithful Loverin was to the victim.

Earlier in the trial, Loverin testified he was given the videos so he'd pass them on to the victim. Keith Hobbs wanted the victim to know the amount of trouble they were in, Loverin told court.

Keen brought up that testimony to Keith Hobbs, suggesting the videos themselves were an implicit threat against the victim, as by giving them to Loverin, Keith Hobbs was ensuring the victim would see them.

Keith Hobbs disagreed, saying he told Loverin the police would be told, as well. His intent was for Loverin to stop working for the victim, court heard.

Loverin had earlier told court the police already had a copy of the videos. Keith Hobbs said that was a lie.

Keith Hobbs told court he was trying to protect Loverin, who is a member of the military.

"My military loyalty overrode my thought process at the time," Hobbs said of meeting with Loverin. "I don't think it was a smart move, but something I did."

However, Keen said text messages between Keith Hobbs and the victim paint a different picture. Two hours after Keith Hobbs met with Loverin, Marisa Hobbs texted the victim, telling him Loverin was bringing the videos to them.

Marisa Hobbs then sent another text to the victim: "Craig [Loverin] told Keith he was on his way to you."

The texts, Keen said, line up with Loverin's version of events.

Changing testimony

In the afternoon session, Keith Hobbs returned to the stand for a continuation of the cross-examination. However, one key piece of his testimony changed.

On Thursday afternoon, Keith Hobbs said he gave copies of the videos showing the alleged extortion victim acting erratically to Loverin because the victim "needed to see his behaviour."

That was different than what Keith Hobbs said in the morning session, when he told court he passed the videos on out of concern for Loverin. He wanted Loverin to know the kind of person he was working for.

After Keen completed his cross-examination of Hobbs, Voss's lawyer George Joseph called up a witness who can't be identified due to a publication ban.

The witness spoke of the alleged extortion victim being "controlling," and said that Voss was pressured to sell her home on Moodie Street when she moved in with the victim.

The witness also spoke of the creation of a will, that they wrote, dictated by the alleged victim. The victim then signed the will, and wanted more text added, The paper was then folded, somewhat, and the phrase "this is worth $50M" was added as well. The paper was then put onto a china cabinet.

There was brief cross-examination from Keen, and then the witness wrapped up their testimony, and the defence case concluded.

Court will resume at 9:30 a.m. Friday, to discuss scheduling when closing statements will take place.