Commission of Inquirv into Monev Laundering in British Columbia

The Honourable Mr. Justice Austin F. Cullen. Commissioner

Sunnlemental Submissions

Application for Standins on Behalf

of James (Jim ) Liphtbodv. President & British Columbia Cornoration

Introduction

1 These are the supplemental submissions of James (Jim) Lightbody's, President and Chief

Executive Officer of the British Columbia Lottery Corporation (the "BCLC"), application

for standing before the Commission of Inquiry into Money Laundering in British

Columbia (the "Commission").

2 In the Commissioner's Applications for Standing- Ruling #1 issued September 24,2019,

at paragraph 1 1, the Commissioner set out certain relevant considerations to guide the

determination of whether an applicant has a sufficient interest in the subject matter of the

Inquiry to be granted standing ("Ruling #1). It is the applicant's position that he meets the

test to be granted standing when these considerations are reviewed.

Applicant's rights or interests

3. The first three considerations at paragraph 11 of Ruling #1 address the applicant's rights

or interest as follows:

a. the nature and extent of the applicant's rights or interest;

b. why standing is necessary to protect or advance the applicant's rights or

interest;

c. whether the applicant faces the possibility of adverse comment or criticism with
respect to its conduct;

I
4 Mr. Lightbody is the President and CEO of BCLCI. It is fair to say that the First German

Repoft2, review and consideration of which is part of the Commission's mandate, is

highly critical of BCLC's anti-money laundering policies and procedures. Given Mr.

Lightbody's position at BCLC, it is also fair to say that any adverse comments or
criticisms of BCLC reflect directly upon Mr. Lightbody's professional and personal

reputation.

5 Mr. Lightbody has faced criticism in the media. By way of example, breaker.com

o'It's brutal- BCLC CEO calls

published a story about Mr. Lightbody titledooExclusive:

spin doctors for help amid casino money laundering scandal".3

6. Mr. Lightbody faces the possibility of further adverse comment or criticism during the

course of the Commission that could affect his reputational, privacy and/or legal interests.

Standing is therefore necessary, as full participatory rights in the Commission will ensure

that Mr. Lightbody's counsel has the ability to properly safeguard his interests.

How the Applicant's participation will contribute to the Commission's work

7 Considerations (d) through (f) of paragraph 11 of Ruling #1 address how the applicant's

participation will contribute to the Commission's work as follows:

d. how the applicant intends to participate, and how this approach will assist the
Commission in fulfilling its mandate;

I He is currently on a medical leave of absence'

Casinos Conductedfor the
' Dirty Moneyi An Independent Review of Money Laundering in Lower Mainland("First
Attorney Geierat of British Columbia, Peter M. German, Q.C., March 31 , 2018 German Report").
3
https:i/thebreaker.news/miscellany/bclc-damage-control/ published March 26,2019. It should be noted that the
pi.stCirman Report..feii to Bob Makin of breaker.com in the acknowledgments section as a reporter who
"continues to moit ably perform a political oversight role" (First German Report atp. 4)'

2
 e. whether and how the applicant's participation will contribute to the
thoroughness and fairness ofthe process;

f. whether the applicant has expertise and experience relevant to the

Commission's wotk;

8 Mr. Lightbody, having been in a leadership position with BCLC since 20114, has

experience and knowledge relevant to the Commission's wotk that will contribute to the

thoroughness of the process. First, Mr. Lightbody can offer his perspective and insight on

governmental oversight of BCLC's operations and procedures as it existed under the

former Ministry of Finance versus under the current Ministry of the Attorney General.

9 Second, Mr. Lightbody can provide context and background information with respect to

BCLC's interactions and relationships with the regulators over the years being both

GPEB and FINTRAC.

10. Third, Mr. Lightbody can educate the Commission as to the business model under which

casinos are operated in BC and the roles of the various players within that business

model. This is a unique business model that is poorly understood in the general
community.

11. Fourth, Mr. Lightbody has been the Chair of the BC Horse Racing Industry Management

Committee for approximately five years. He can assist the Commission by explaining the

roles of the various parties within the horse racing industry and BCLC's role within that

industry.

a
has been President and CEO since February 2014. He was Vice President
Mr. Lightbody joined BCLC in 2001, He
of Casinos and Community Gaming from 2011 until January 2014.
4
J
t2 Mr. Lightbody intends to fully participate in the Commission through counsel. His

participation and knowledge will assist the Commission in fulfilling its mandate to make

findings of fact and recommendations with respect to money laundering in British

Columbia. Moreover, Mr. Lightbody's participation will contribute to the fairness of the

process, as he is owed a high degree of procedural fairness in consideration of the Bakers

factors, as addressed in his previous standing application'

Overlap or participation in another capacity

13. Considerations (g) and (h) of Paragraph 1 1 of Ruling #1 address whether there is overlap

in the applicant's interest or whether the applicant might participate in another capacity:

g. whether and to what extent the applicant's perspective or interest overlaps or

duplicates other applicants'; and

h. whether the applicant may more appropriately participate in another capacity

for example, as a witness who may testify instead of being granted formal
-
standing.
-

14. Mr. Lightbody's perspective may overlap to a certain extent with BCLC's perspective.

However, because Mr. Lightbody has been involved with BCLC for a number of years,

he has a personal perspective on matters relevant to the Commission and will be able to

instruct his own counsel on those matters that BCLC will not be privy to.

15 Mr. Lightbody's participation in the Commission as a witness on behalf of BCLC would

not be sufficient to protect his reputational and personal interests. In particular, counsel

for BCLC owes an undivided duty of loyalty to BCLC; therefore, if a conflict should

t Baker v. Canada (Minister of Citizenship and Immigration),

1199912 SCR 817

4
 arise between Mr. Lightbody's personal or reputational interests and BCLC's corporate

interest, Mr. Lightbody's interests will not be properly safeguarded'

Conclusion

I6 It is respectfully submitted that Mr. Lightbody should be granted standing to participate

in the Commission through his counsel to the fullest extent possible having regard to the

factors identified atparugraph 11 of Ruling #1. This would contribute to the thoroughness

and fairness of the Commission and assist the Commission to fulfill its mandate.

ALL OF WHICH IS RESPECTFULLY SUBMITTED

Dated at Vancouver, British Columbia this 15th day of October 2019,

Ea,z%.,fo Coun$i for Jim Lightbody,

Robin N. McFee, Q.C.