Toronto mayor tried obtaining crack tape: court documents



TORONTO // New court documents released Wednesday suggest Toronto Mayor Rob Ford may have offered $5,000 and a car to suspected drug dealers in exchange for a video that appears to show him smoking crack.

The information is contained in police wiretaps of alleged gang members who spoke about delivering drugs to Ford and having pictures of him using drugs. One alleged gang member is heard telling another that he rejected the offer for the tape and planned to meet the mayor and ask for “150” meaning $150,000.

On one wiretap on April 20, an alleged gang member is heard saying, “Rob Ford was smoking his rocks today” and that he would post a picture on Instagram. On another wiretap, one man says he has many pictures of Mr Ford “doing the hezza,” which police say is known to be slang for heroin. Another man suggests those pictures would be worth a lot, the document says.

On Wednesday, Mr Ford laughed and ignored questions as he left his office.

The Toronto, who’s become an international media sensation, acknowledged last month that he smoked crack in a “drunken stupor” about a year ago. He previously denied the existence of the video.

Mr Ford has refused to resign as mayor of Canada’s largest city and financial capital, despite mounting pressure after a string of incidents that have embarrassed Canadians, from public drunkenness to appearing in another video that showed him threatening “murder” in an incoherent rant. Toronto’s city council has stripped him of most of his powers.

He admitted that he smoked crack after police said they had obtained a video that appears to show him puffing on a crack pipe as part of an investigation into his friend Alexander Lisi.

The newly released court documents say police heard on the wiretaps that Mr Ford had his phone stolen or lost it at a home they believe to be a crack house and that Mr Lisi was trying to get it back.

Police say they overheard that Mr Lisi threatened to “put the heat on” the gang if he didn’t get Ford’s phone back and that the alleged gang members said they would not tolerate threats because they had a picture of Ford “on a pipe,” which police believed meant a crack pipe. Police say Mr Lisi gave the men marijuana in exchange for the return of the mayor’s phone.

City councilor Joe Mihevc said police need to examine the allegations that Ford tried to obtain the tape.

“The mayor can’t come out and say, “I’m sorry, I’m sorry, I’m sorry,”’ he said. “This man needs help. He needs a lot of help.”

Toronto Police Bill Blair declined to comment on the newly released documents. The wiretaps are evidence in the case against Lisi, who faces trial on drug and extortion charges. The mayor has not been charged.

“All of the evidence that was gathered in that case has been reviewed by investigators and with the Crown prosecutors in this case, and where reasonable and probable grounds to lay a charge exists, charges have been laid,” Blair said.

Police were in the midst of a drug and weapons investigation involving alleged members of the Dixon Bloods gang when the mayor’s name surfaced on wiretaps in March and April. Police didn’t open an investigation into Ford and Lisi until May, when US website Gawker and the Toronto Star reported that alleged drug dealers were shopping around the crack video.

* Associated Press

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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