#1601: Marine Links Paulson Starnet Pig-Farm Betting Key to Lac-Megantic Up-Down Body Count RCMP

Plum City – (AbelDanger.net). United States Marine Field McConnell has linked RCMP Commissioner Bob Paulson’s apparent use of RCMP Entrust public key infrastructure to hack Starnet’s on-line gaming at Carrall Street, Vancouver, and interactive porn production at the Pickton pig farm in Port Coquitlam, to alleged up-down betting on CAI spot-fixed body counts by RCMP/Quebec pension funds after an MMA train with sabotaged brakes began its journey into Lac-Mégantic on July 6, 2013. 

McConnell notes that by 1999, Paulson’s RCMP colleagues were using the RCMP Entrust rootkit key to hack Starnet’s B.C. online gaming operations which were suspected of making and distributing interactive child pornography.

McConnell further claims that subsequent to the RCMP raid on Starnet’s Carrall Street premises in 1999, Paulson transferred Starnet’s confiscated assets, including its hardware, software, database and encryption keys, to Minerva House, 5 Montague Close, London, the HQ of World Gaming plc., and an alleged front for Cressida Dick’s pedo-fem extortionists in the diversity directorate of London’s Metropolitan Police.

Prequel 1:
#1600: Marine Links CAI Spot-Fixed 777 Crash to Starnet Hack, Peacock Rudder and RCMP Dial-A-Yield Bombs

Media Coverage of Starnet Raid – August 20, 1999 [Former RCMP sergeant Bob Paulson allegedly confiscated Starnet assets and moved them to custody of Cressida Dick, the former head of the pedo-fem (?) diversity directorate of London’s Metropolitan Police] 

[RCMP Commissioner Bob Paulson’s pensions investments controlled from 1999 to 2011 by Alexander Haig’s CAI bookmaker, Paul Cantor]

The Lac-Mégantic derailment occurred in the town of Lac-Mégantic, Quebec,Canada, at approximately 01:15 EDT,[1][2] on July 6, 2013, when an unattended 73-car[3][4][5] freight train carrying crude oil ran away and derailed, as a consequence of which multiple tank cars caught fire and exploded. Fifteen people have been confirmed dead[6] and 50 possibly missing.[7][6] More than 30 buildings in the town’s centre were destroyed.[2]


The MMA freight train departed the CPR yard in Côte Saint-Luc[13][19] and stopped at Nantes at 23:25, 11 kilometres (6.8 mi) west of Lac-Mégantic, for a crew change. The engineer, Tom Harding[20] parked the train on the main line by setting the brakes and followed standard procedure by shutting down four of the five locomotives.[21] The engineer did not park the train on the adjacent siding, which has a derailer which would have stopped the train from accidentally departing [22]. According to Transport Canada, it is unusual that one leaves an unattended train on the mainline[23]. He left the lead engine, #5017, running to keep air pressure supplied to the air brakes.[24] He then departed for a local hotel, l’Eau Berge in downtown Lac-Mégantic,[25] for the night.[26]

The Nantes Fire Department responded to a 911 call from a citizen at 23:32 who witnessed a fire caused by a leaking fuel pipe on the first locomotive. The fire department extinguished the blaze and notified the Montreal, Maine & Atlantic Railway. By 0:13 two MMA track maintenance employees had arrived from Lac-Mégantic; the Nantes firefighters left the scene as the MMA employees confirmed the train was safe.[27] Yves Bourdon, director of the MMA, told CBC that the air brakes of all locomotives and wagons were all activated, as well as hand brakes (mechanical) 5 locomotives and 10 cars.[28]

The MMA now alleges that the lead locomotive was tampered with; that the diesel engine was shut down, thereby disabling the compressor powering the air brakes. Because the air brakes were apparently not able to operate in a fail-safe manner, this allowed the train to move downhill from Nantes into Lac-Mégantic once the air pressure dropped in the reservoirs on the cars.[21]

According to Nantes Fire Chief Patrick Lambert, “We shut down the engine before fighting the fire. Our protocol calls for us to shut down an engine because it is the only way to stop the fuel from circulating into the fire.”[29]
By regulation, “when equipment is left at any point a sufficient number of hand brakes must be applied to prevent it from moving” (per Section 112 of the Canadian Railway Operating Rules[30]) and “the effectiveness of the hand brakes must be tested” before relying on their retarding force.[31]

Soon after being left once again unattended, the freight train began moving downhill on its own toward the town.[32] The 72 loaded tank cars detached from the five locomotives and buffer car approximately 800 metres (0.50 mi) from Lac-Mégantic, then entered the town at high speed[33] and derailed on a curve.[1][34]

Quebec police open criminal probe after deadly train crash
Tue Jul 9, 2013 7:44pm EDT
By Richard Valdmanis and Julie Gordon

LAC-MEGANTIC, Quebec (Reuters) – Canadian police on Tuesday said they had opened a criminal investigation into the train explosion that likely killed 50 people in Lac-Megantic, and some 200 officers were scouring the town’s devastated center for clues.

Inspector Michel Forget said police did not believe terrorism was involved when a runaway train hauling 72 cars of crude oil barreled into town early on Saturday, derailed on a curve and exploded into a huge fireball that destroyed the center of the lakeside community.

“I will not speculate on the evidence that we’ve recovered because (it is) secret,” Forget said. But he indicated that some evidence might point to “criminal acts.”

“We don’t think the terrorism aspect is a part of that,” he added. “Criminal negligence might be one of the leads we are looking at.”

Almost a third of the town’s 6,000 residents were evacuated from their homes as firefighters from Canada and the nearby U.S. states of Maine and Vermont struggled to bring the massive blaze under control. Just over half have been allowed back.

Montreal Maine & Atlantic, which owned the train, is one of many North American railroads that have vastly stepped up crude-by-rail deliveries as producers seek alternatives to pipelines that have been stretched to capacity by higher output in Canada and North Dakota.

The oil in the train that crashed was being transported from the Bakken fields of North Dakota to eastern Canada.

Police have found 15 bodies, but residents hold out little hope that the 35 or so people still missing will be found alive in an incident that could turn into North America’s worst rail disaster since 1989.”

Straight.com RCMP commissioner Bob Paulson got a free pass from missing women’s inquiry, say lawyers … Oppal inquiry didn’t call Bob Paulson, even though his name was in the documents.
by CARLITO PABLO on AUG 22, 2012 at 3:07 PM

HIS NAME STANDS out among witnesses who weren’t called by the Missing Women Commission of Inquiry.

At the time when police forces were fumbling the hunt for the person preying on women working Vancouver’s Downtown Eastside strolls, he was the non-commissioned officer in charge of the RCMP’s southwest district major-crime section.

Then a sergeant, Bob Paulson is now the RCMP commissioner, and lawyers representing the families of these women wanted him on the witness stand. But the commission chaired by former B.C. attorney general Wally Oppal refused to summon Canada’s top Mountie.

In their final submission to the commission, lawyers Cameron Ward and Neil Chantler and researcher Robin Whitehead argue that the inquiry is incomplete because witnesses like Paulson weren’t summoned.

According to their filing, Paulson was “extensively involved in the missing women’s investigations”.

“His name appears hundreds of times in the documents disclosed to the Commission,” the submission states.

It also notes that in March 2000, then-sergeant Paulson and a staff sergeant approached then–chief superintendent Gary Bass of the RCMP’s E Division in B.C. “with a proposal to create a coordinated effort to review” unsolved homicides and the cases of the missing women. This was mentioned in a report for the Oppal commission by Deputy Chief Jennifer Evans of the Peel Regional Police.

Evans noted that the staff sergeant wrote a proposal that read in part that “at least 3 (three) serial killers are believed to be operating in BC at this time”.
It took almost a year before a so-called “Joint Forces Operation” was launched in connection with investigating the disappearances of the missing women.
In a phone interview with the Georgia Straight on August 22, Chantler indicated that lawyers for the families hoped to ask Paulson about this March 2000 meeting.

“We would have wanted to probe the circumstances and find out exactly what they exactly said and what discussions were had, and why efforts weren’t taken to form a JFO earlier in those circumstances,” Chantler said.

Robert Pickton, a pig farmer from Port Coquitlam, was eventually arrested in 2002. He was convicted in 2007 for the deaths of six women whose remains were found on the farm. The Crown eventually stayed charges against him for the deaths of 20 other women.

Paulson was sergeant in charge of the RCMP’s southwest district major-crime section from 1999 to 2001. B.C.’s southwest region includes the Lower Mainland. Paulson’s office didn’t respond to a request for comment before deadline.

The final submission by the families’ lawyers also identified 16 other witnesses who were not called by the commission.

One of these is David Pickton, who lived with his brother Robert and was “well known to police” for being associated with the Hells Angels. According to the submission, the Picktons’ properties in Port Coquitlam were “known by the police to be hives of illegal activity, including cockfighting, illicit alcohol and drug use, prostitution and petty theft”.

The document states that “despite the RCMP’s frequent attendances there, possibly as many as 49 murders were perpetrated”.

Commission spokesperson Ruth Atherley told the Straight by phone that Oppal cannot comment because he’s preparing his report.

In their final submission, the lawyers for the families also note that there are “many theories” about why Pickton wasn’t stopped early on. One is in connection with the police investigation of the Hells Angels, whose members frequented the Picktons’ Piggy Palace booze can.

According to the lawyers, this could have “in some way played a role in the police departments’ failure to intervene in Robert Pickton’s activities”.
They also raise the possibility that “police knew more about the Picktons than they were willing to disclose publicly.”

As well, the lawyers state, “many believe…that Robert Pickton did not act alone.””
“VANCOUVERSUN article: July 19, 2000

Gaming firm Starnet battles legal problems

David Baines Vancouver Sun

Starnet Communications Int`l: RCMP investigation casts shadows on share price


It has been 11 months since RCMP raided the Downtown Eastside office of Starnet Communications International Inc., a Vancouver purveyor of Internet porn and gaming, but prosecutors still haven`t reached the point where they are even considering charges.

“The investigation continues to be actively pursued,” Insp. Michael Ryan, in charge of the proceeds of crime section of the Organized Crime Agency of B.C., said in an interview this week. “We are in the process of preparing a report for Crown counsel.”

The raid last Aug. 20 prompted front-page headlines, a massive sell-off of Starnet stock, a slew of shareholder class action suits and — because of a tenuous relationship between one of Starnet`s shareholders and former premier Glen Clark — fodder for a growing coterie of political conspiracy theorists.

It also prompted Starnet to move its head office to the more hospitable clime of Antigua, undergo a wholesale change of management and divest itself of its porn business.

The company also took a new strategic direction, concentrating on building the quality, rather than the quantity, of its gaming licensees to enhance long-term royalty income.

The results have been impressive: Revenues are booming, and profits are within grasp. But nearly $7 million US of the company`s money remains frozen in a Vancouver bank by court order, and the stock continues to sag under the ignominy and uncertainty of the RCMP investigation.

Starnet president Meldon Ellis, a Vancouver lawyer who was hired after the raid to dig the company out of the mud, denies he is frustrated by the pace of the police probe.

“Frustration is probably too strong a word. We understand the complexity of the investigation. Obviously many of our stakeholders are frustrated with the time it has taken. The general perception is that this is a cloud over the company that prevents it from realizing its full potential.”

Although the search warrant information disclosed that police were probing allegations of illegal gaming and pornography, Ellis says the focus is clearly on gaming.

“I`d be surprised if the RCMP would say otherwise. Clearly in terms of the work that`s been done, the focus has overwhelmingly been on gaming operations.”

Ellis also said there was never any substance to reports that Starnet was harbouring or distributing child pornography. “I don`t want to see those two words in a Starnet story again,” he said.

Starnet, listed on the OTC Bulletin Board in the U.S., started business in 1996 as a provider of Internet porn. It broadcast live sex performances from its Carrall Street offices and the No. 5 Orange strip club on Powell Street.

Originally there were about 20 million shares outstanding. Half were owned by Murray Partners (BVI) Inc., a British Virgin Islands company composed of several discretionary trusts, some of which were beneficially owned by Starnet`s officers and directors. The company refused to say who owned the rest, sparking rumours they belonged to unsavory characters.

Fuelling the rumours was the fact that an another early shareholder was Ken Lelek, who runs a stripper booking agency and is a former associate of Lloyd Robinson, a high-ranking Hells Angel.

Although Lelek is neither an officer or director of Starnet, the RCMP search-warrant information suggested he was still closely associated with the company at the time of the raid.

In 1997, Starnet branched into gaming and, through its software development subsidiary, Softec Systems Caribbean Inc., developed what is generally recognized as leading gaming technology.

It obtained a gaming licence from Antigua and operated its own gaming sites through another subsidiary, World Gaming Services Inc., but quickly realized it could make more money licensing its gaming technology than running its own Web sites.

It started selling turn-key gaming systems for up-front fees of $100,000 each and royalties ranging from 10 to 40 per cent of gross revenues (wagers less payouts).

In rapid-fire succession, it registered nearly 50 licensees. Although Starnet refused to accept wagers from Canadian and U.S. residents due to uncertainty over gaming laws in those countries, there was nothing to stop its licensees from doing so.

By July 1999, investors had visions of an endless stream of royalty income pouring into Starnet`s coffers. They bid the stock price to $26 US, giving the company a market value of about $750 million.

“There was a lot of excitement with dot-com and Internet companies, and Starnet obviously enjoyed the short-lived fruits of the excitement around those kinds of stocks,” says Ellis.

Within days, the company became embroiled in a dispute with its largest licensee, Claude Levy of Las Vegas Casino Inc., who claimed Starnet`s technology didn`t perform as advertised. The stock slumped to $13, prompting Starnet to sue Levy for libel. Levy responded with a lawsuit claiming breach of contract.

In August, RCMP officers, after satisfying themselves that they could place bets from Canada with Starnet licensees, stormed the company`s office and simultaneously raided the homes of six senior officers and directors.

Adding to the media excitement was the fact one of Starnet`s original shareholders, Steve Ng, was a co-applicant with Dimitrios Pilarinos for a casino licence at the North Burnaby Inn.

Pilarinos was a neighbour and friend of then-Premier Glen Clark`s and did renovation work on Clark`s house, apparently without charging for his labour.

Pilarinos and Ng subsequently received B.C. government approval for a gaming licence at the North Burnaby Inn, even though their application scored less than several competitors, suggesting Clark had intervened on behalf of his friend.

Although this had no material impact on the company`s operations, it ensured the boldest possible headlines. The stock plunged to $4, prompting a half dozen class-action lawsuits from shareholders claiming they had not been adequately warned of the risk of running a gaming operation from Canada.

Meanwhile, a Starnet official walked into the main office of CIBC in Vancouver and asked to transfer $6.9 million US in two company accounts to Antigua. The bank refused to release the funds, and Crown prosecutors subsequently obtained an order freezing the accounts pending completion of the investigation.

In October, Ellis — Starnet`s in-house corporate counsel — was appointed president and CEO, replacing Mark Dohlen. It was one of several changes that would lead to a complete change in management. Several key developments followed:

l Starnet sold its on-line adult entertainment business to Kiama Ltd., a company domiciled in the tax and secrecy haven of the Jersey, Channel Islands. Purchase price was $2.3 million US ($460,000 up front and the balance over three years).

Ellis insists he does not know the identity of the purchasers, other than they “have had experience in adult entertainment industry” and are arm`s-length to anyone at Starnet.

l Starnet separated its software design and development function from its gaming operations. Now operating under the name Inphinity Interactive Inc., it has moved from its Carrall Street location to premises at 1401 West Eighth Avenue, where it employs about 100 people.

l A subsidiary, Starnet Systems Inc. (formerly Softec Systems Caribbean), was established to acquire the intellectual property developed by Inphinity and license it to gaming operators. It is located in Antigua, where Ellis also maintains his permanent address.

l World Gaming, also located in Antigua, now acts as a division of Starnet and operates gaming sites mainly to test new marketing strategies and products.

Ellis said moving from Carrall Street, where the adult porn business is still being conducted, helps remove any perception that Starnet still has ties to that business, and moving all gaming operations offshore renders moot any suggestion that Starnet is still conducting illegal gaming (or any gaming, for that matter) in Canada.

Meanwhile, the company has been dealing with its legal problems:

l With regard to Starnet`s defamation suit against Levy, Ellis said a Belgian court entered default judgment against Levy and ordered him to cease making defamatory statements.

l Ellis also says B.C. Supreme Court ruled Levy would need to take his allegations that Starnet provided a defective gaming service to arbitration, as stipulated in his contract with Starnet. He says the claim has no substance.

l The U.S. class-action suits, which claim Starnet did not adequately advise shareholders of the legal risks of conducting an Internet gaming operation in Canada, have been consolidated under one of the plaintiffs` counsels. Ellis says Starnet will now begin settlement talks.

“These are normal-course class-action suits driven by law firms rather than the shareholders,” says Ellis. “The significant thing is that hundreds of shareholders have come forward to say they fully understood the nature of the [legal] uncertainty and the inherent risk of operating in this business sector.”

l The company settled a wrongful dismissal suit by former president Jason Bolduc by paying him $75,000 US. Bolduc continues to serve as a director.

In other developments, Murray Partners, the BVI company which owns the control block of shares, was disbanded. Ellis says it removes the mystery and makes the company`s ownership more transparent. The largest shareholder is now Bolduc with 1.4 million shares, or just over four per cent.

Meanwhile, the company`s focus on good quality licensees appears to be bearing fruit.

Total revenue for the nine months ending March 31 was $12.3 million, nearly triple the same period a year earlier. Of this amount, $2.9 million was gleaned from up-front fees and $9.4 million from royalties and fees.

After provision for bad debts of $1.4 million (to reflect the poor quality of some of its licensees) and legal expenses of $1.9 million (to handle the myriad legal problems), the company lost $3.7 million on gaming operations, compared with a profit of $419,000 the previous period.

“If we took all the adjustments out, we would have run at about a wash,” said Ellis.

He said that, despite the company`s problems, revenues are growing at about 100 per cent per year.

“We have developed top-rate team in Vancouver, totalling 100 high-tech professionals. The company is transforming itself into a high-quality, well-run Internet enterprise. Over time, that will be the story that emerges from all this.”

On Tuesday, Starnet`s share price jumped by $1.31 to $3.94 US on heavy volume of 1.5 million shares after announcing it will introduce a new line of online lottery, bingo and casino games in August. With 32 million shares outstanding, the company`s total stock market value is about $125 million, or roughly 16 per cent of its former value.


Starnet CEO heads to court; hiring continues; sweet deals in Antigua
Friday Aug 27 1999
by Brent Mudry

In the first legal challenge to the Starnet Communications International police raid, Starnet chief executive Mark Dohlen has launched a court action seeking to assert solicitor-client privilege over certain documents and records seized during searches of Starnet’s corporate headquarters and his personal residence a week ago. In a motion filed Thursday in the Supreme Court of British Columbia, prominent Vancouver criminal defence lawyer Ian Donaldson seeks to block police access to sensitive records seized by members of the RCMP and the Co-ordinated Law Enforcement Unit on Aug. 20. 

Certain disputed files have been sealed in court pending resolution of the privilege claim. An initial court hearing has been scheduled for Tuesdaymorning on the search warrant challenge. 


In an unrelated Starnet matter, the Vancouver-based Internet gambling and
pornography company appears eager to mount a new hiring spree, recruiting staff in numerous positions, including its porn division, which it hopes to quickly sell off.

In a large ad on Thursday in The Georgia Straight, a Vancouver weekly
entertainment newspaper, Starnet is soliciting a marketing representative for its
entertainment division, amongst numerous other posted jobs. “Do you have the
ability to ‘think outside the curve’?,” Starnet asks in its porn-peddler posting. The company states that this position requires strategic thinking and implementation,directly relating to Redlight.com and Adultv.com. 

Queasy web-surfers may want to take a pass on these sites, at least Redlight.com, which offers a much harder-core home page than Starnet’s main porn sites, Sizzler.com and Chisel.com. Redlight.com’s home page offers an extremely explicit mix of “teaser” shots, including a graphic live-sex video clip. While Starnet wants to dump its porn business, its latest ad seeks a marketer to maintain continual market research of new forms of advertising and demographics, with “overall participation in the team effort.” The Thursday recruitment ad came three days after Starnet’s Monday disclosure that it hopes to quickly auction off its adult entertainment division assets, with documentation to be complete in 30 days.

This Redlight.com site happens to be the same Starnet site targeted by the police in their proposed single criminal count of adult pornography. While no charges have yet been laid against Starnet or any directors or employees, the “information to obtain,” a court-filed document supporting the search warrant, notes eight proposed counts, including one of possession, for the purpose of publication, distribution or circulation, computerized pictures depicting obscene acts. The police note that “Fetish,” one of Redlight.com’s seven sections, shows 84 images of nude bondage, women with clamps on body parts, women with horse bridles and bits in their mouths, and women hanging by their arms from straps or belts.

The latest Starnet recruitment ad also suggests it is “business as usual” at Starnet, despite the week-ago raid by more than 100 officers from the RCMP, CLEU, the Ontario Provincial Police, the United States Customs Service and the U.S. Internal Revenue Service.

The Georgia Straight ad seeks a WorldBroadcasts.com manager, an Internet marketing manager, HTML programmers, graphic designers, an investor relations administrative assistant, an adminstrative assistant of production and sports odds analysts. Starnet seeks “open-minded, innovative people who enjoy working in a dynamic, fun, team atmosphere and are able to work creatively under pressure.” 

“In 1983, Dick joined the Metropolitan Police as a constable. In 1993, she joined the accelerated promotion course at Bramshill Police College, and in 1995, transferred to Thames Valley Police as a superintendent. She was operations superintendent at Oxford, and later served as area commander in Oxford for three years. In 2000, she completed the strategic command course and, in 2001, she was awarded an M.Phil in criminology from the University of Cambridge (Fitzwilliam College), graduating with the highest grade in her class.[5]

In June 2001, she returned to the Metropolitan Police as a commander where she was head of the diversity directorate until 2003. She then became the head of Operation Trident, which investigates gun crimes within London’s black community.

In the immediate aftermath of 21 July 2005 London bombings, she was the gold commander in the control room during the operation which led to the death of the Brazilian Jean Charles de Menezes, wrongly identified as an attempted suicide bomber, on 22 July 2005.

In September 2006, the Metropolitan Police Authority announced her promotion to the rank of deputy assistant commissioner, specialist operations. On 30 June 2009 the Metropolitan Police Authority further announced her promotion to assistant commissioner in charge of the Specialist Crime Directorate.[6] According to a BBC radio documentary, she is a supporter of the charity Common Purpose UK, having attended a course in 1995/96 while serving in Thames Valley Police[7][8]
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