Judge refuses bond in laundering case - Hearing takes place behind closed doors

www.nola.com Friday January 24, 2003 By Stephanie Doster Kenner bureau

During a closed-door detention hearing Thursday, a federal judge decided a Belle Chasse man charged with conspiracy to commit money laundering will not be released on bond, lawyers in the case said.

Harry Adair, 51, 116 F St., who said in court records that he works for a company in Harvey called Signal Resources, was among three people indicted Thursday by a grand jury on charges of conspiracy to commit money laundering. From Our Advertiser

Also indicted were Kenneth Vicknair, 52, 3212 Pansy Court, Marrero, and David E. Wallace, 49, 510 Folse St., River Ridge. Vicknair and Wallace were released on bond Tuesday -- $50,000 for Vicknair and $75,000 for Wallace -- after detention hearings that were open to the public. Attorneys would not say why Adair's hearing was closed, and Assistant Special U.S. Attorney Patricia Jones said she does not anticipate that other hearings will be held behind closed doors.

The three men were arrested last week on money laundering charges after meeting an undercover agent and offering to trade $150 million in Venezuelan promissory notes for what the agent told them was drug money, Secret Service officials said.

Also arrested was Chien C. Lam, 52, 7527 Freret St., New Orleans, but he was not named in the indictment. Prosecutors would not comment further about Lam. Lam, who is identified in a federal complaint as a martial arts instructor, was released last week on a $25,000 bond.

The investigation began in early January, when Secret Service agent Darren Vogt learned Adair wanted to sell $150 million in promissory notes issued by the Bank of the Republic of Venezuela, according to a complaint filed in federal court.

After several recorded conversations, the agent met the four suspects in a conference room at the Hilton Garden Inn, 4535 Williams Blvd. After examining a $5 million note and repeating that his money came from drug dealers, the agent told the suspects that he was ready to buy that note on the spot with a cashier's check, authorities said, and that he would buy the rest of the notes the following morning.

The four suspects were subsequently arrested.

Lyman E. Thornton III, first assistant U.S. attorney for the Middle District of Louisiana, said investigators are trying to determine if the notes are real and how they got into the country.