A prosecutor is urging a judge to order the forfeiture of a million-dollar house overlooking a suburban Halifax lake, as the 49-year-old homeowner faces sentencing for drug, money-laundering and proceeds of crime offences uncovered during a major police investigation.

Gary (Boo) Boudreau was in provincial court Monday in Halifax as lawyers continued arguments over whether the home he built on Kearney Lake should be forfeited, along with a pontoon boat, a hot tub and $47,620 in cash found during the 2020 police search of the house.

Federal prosecutor Lee-Ann Conrod told the court that if Boudreau is allowed to retain the home, he would be able to serve a prison term and then “return to enjoy the comforts of his criminal labours” following his release.

Boudreau was convicted of charges last August following a multi-day trial stemming from an RCMP investigation into cocaine trafficking and illegal cannabis production that eventually led to more than a dozen arrests in late 2020 and early 2021.

Investigators installed listening probes in two vehicles, wiretapped phones, reviewed extensive financial records and did covert surveillance on several suspects. Those efforts included an officer who used binoculars to peer across the lake and into Boudreau’s kitchen.

Boudreau was convicted of money laundering, possession of proceeds of crime, possession of cocaine for the purpose of trafficking and conspiracy to traffic, and possession of “cut,” chemicals used to dilute cocaine, increase the quantity and maximize profits.

Judge Elizabeth Buckle found Boudreau used funds from his illegal activities to help pay for land and build his home, which included an in-ground swimming pool.

Prosecutors are seeking a 13-year prison sentence for the multiple offences. The defence has not yet indicated what sentence it will argue. The case returns to court in late May.

During trial, the court heard that Boudreau owns a drywalling and insulation company. Defence lawyer Pat MacEwen has argued the home should not be forfeited as the court found it represents an intermingling of proceeds of crime with money earned from legitimate business.

In written submissions to the court, MacEwen said forfeiture provisions in the Criminal Code are intended to ensure “crime doesn’t pay,” but he argued they are not meant to be punitive. He said if the entire property is forfeited, the amount would “far exceed” the proceeds of crime.

Instead, MacEwen said, there should be a partial forfeiture where Boudreau pays a fine of between $100,000 and $150,000 but retains the house.

Given the judge’s findings following trial, MacEwen agreed the pontoon boat, the hot tub and the cash, the bulk of it found in a Walmart bag and a Louis Vuitton bag, are subject to forfeiture. He argued against certain additional amounts sought by the Crown.

Conrod pointed Monday to the home’s assessed value, which has nearly doubled to about $1.1 million since it was built in 2020. She said Boudreau has used the property as security for “other wealth acquisition.” 

After the house was constructed, she said, Boudreau refinanced a home-equity line of credit from TD Bank for roughly $700,000, and then wired nearly $300,000 to Bit-now, a cryptocurrency exchange.

Allowing Boudreau to simply pay a fine instead of losing the home would leave him with “pretty significant benefits,” Conrod told the court. With the property’s value rising, he would retain the equity “built up on the foundation of proceeds of crime,” she said.

“The home on the lake with an in-ground pool, hot tub and pontoon boat are conspicuous symbols of wealth and consumption readily apparent to the community at large,” Conrod wrote in a brief.

“When drug dealers are not appropriately punished for living off the proceeds of crime, it offends the community’s sense of justice and fairness.”

When police searched Boudreau’s home on Dec. 9, 2020, they found a shotgun in a bedroom. Boudreau didn’t have a licence and was prohibited from possessing firearms. He pleaded guilty to gun charges, as well as to illegally distributing cannabis related to illicit grow-ops.

Boudreau has a dated criminal record for cocaine trafficking and proceeds of crime. In 2002, he was among several people arrested for a Spryfield drug trafficking ring that attempted to smuggle contraband into two correctional facilities in Nova Scotia. 

The prosecution said a pre-sentence report prepared for the current case found Boudreau discloses no issues with drug or alcohol dependency, or problems with gambling or his mental or physical health, leading the Crown to conclude his crimes were motivated by greed.

The brief filed by Conrod said Boudreau led a “comfortable life,” owned three properties and, according to the pre-sentence report, enjoyed spending time with family, going to the gym, walking his dogs and playing pickleball.

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