Keith Hobbs worked as private investigator while serving as city mayor, court hears

Keith Hobbs worked as a private investigator while serving as Thunder Bay's mayor, court heard during his extortion trial on Wednesday.

The information was discussed in court Wednesday, during day 12 of the extortion trial against Keith Hobbs, his wife Marisa Hobbs, and city resident Mary Voss.

The three are each facing a count of extortion over their alleged attempts to force another person to purchase a house for Voss. OPP Det. Inspt. Martin Graham said earlier in the trial he believed the financial situation of Keith and Marisa Hobbs was at the centre of the extortion attempt.

They were pressuring the victim to buy the home for Voss (and pressuring Voss to accept it) so Voss could borrow money against the house, and then lend it to them. That, at least, is the theory of Graham.

The information about Keith Hobbs having a side job while serving as city mayor came out as the Crown closed its case on Wednesday. Court heard that Keith Hobbs was on retainer from former, and the late Thunder Bay lawyer Wallace Dubinsky.

Keith Hobbs, a former police officer, said Dubinsky was at the time, the lawyer for the Thunder Bay Police Association; that's how the two initially met.

Dubinsky later hired Keith Hobbs, while he was mayor, to watch over the Eaton's building, and a mechanic's shop and car dealership on Court Street.

However, Keith Hobbs was owed money, and was involved in a lawsuit with Dubinsky over that.

The court ruled information about that lawsuit was admissible as evidence, and then the Crown closed its case.

The defence case began with Keith Hobbs taking the stand.

He testified he knew of the alleged victim since 1976, but didn't know them well. They met briefly at a Christmas party in 2014, Keith Hobbs said.

However, in 2016, a relationship between them began to develop, when Keith Hobbs reached out to the victim to seek advice on a matter involving CIBC, court heard.

The victim suggested the initial meeting between the three take place at the victim's home, which Keith Hobbs felt was odd. Nonetheless, he and Marisa Hobbs visited the victim's home on Oct. 19, 2016.

The victim, Keith Hobbs testified, was inebriated at the time, and Keith Hobbs had to ring the bell a few times before the door was answered.

The victim announced "the mayor and his beautiful wife are here" when they entered the home.

The three didn't discuss professional matters much, Keith Hobbs said.

Keith Hobbs recalled the victim shouting profanity, and someone on the phone accusing the victim of sleeping with a woman.

The victim said to the person on the phone they had already received $3,000, Keith Hobbs testified. He said he learned at a later date the person on the phone was Heli Kijanen.

However, the victim insisted on taking pictures with Keith Hobbs, Marisa Hobbs, and Voss, who had arrived just before Keith and Marisa Hobbs left the house, court heard. Voss was told to wear a fur coat for the pictures.

No further meetings were scheduled at the time, but Keith Hobbs testified he asked Marisa Hobbs to get Voss's phone number in case she needed help. He was concerned about the victim's behaviour, he said.

The next meeting took place six days later, on Oct. 25, when Keith and Marisa Hobbs again went to the victim's home. Keith Hobbs testified he thought it was a private meeting, and was frustrated when more people showed up. The Hobbs' brought over dinner to that meeting.

Marisa Hobbs wanted to leave, but Keith Hobbs testified he wanted to look at the victim's collection of firearms. Hobbs said he was concerned, as even though the firearms were old, there was ammunition there, as well.

Those guns would eventually be seized, which Keith Hobbs said was one good things that came out of that night.

Neither Keith nor Marisa Hobbs drink due to health issues, court heard, but Keith Hobbs said they stayed at the gathering because of "curiosity," despite being uncomfortable.

However, he also told court he was frustrated that another person there, who was involved with the victim both professionally and romantically, knew about the CIBC matter, which Keith Hobbs believed would be kept confidential.

Keith Hobbs also told court he spoke to the victim about working for them as a security consultant on Oct. 25. However, he also told court he would not have replaced Craig Loverin, a friend of the victim's who also worked for them as a bodyguard.

Keith Hobbs said he kept going back to the victim's home out of concern for Voss, and an interest in resolving the CIBC matter, which could have included a financial reward of $2 million. "Who couldn't use $2M?" he said to the court.

The victim would later urge Keith Hobbs to allow them to purchase property near the victim's home. Keith Hobbs said he inquired about the land, but the city told him it's parkland and not for sale.

The victim, Keith Hobbs said, wasn't happy with the answer, and Keith Hobbs agreed to make further inquiries.

The victim also knew about their credit card debt, Keith Hobbs told court, and Marisa Hobbs continued to contact the victim about meeting to get advice about the CIBC matter.

At one point, Keith Hobbs said he arrived at the victim's home to find Marisa, who went there earlier, looking upset. The victim asks Keith Hobbs to look at their dishwasher.

"I don't know anything about dishwashers," Keith Hobbs told court, saying he found the request odd.

"Haven't you had enough [of the victim?]" Brian Greenspan, the lawyer representing Keith and Marisa Hobbs, asked.

Keith Hobbs replied that the victim was still considered a business associate.

A meeting between the three took place on Oct. 29, with the victim saying he'd write them a cheque for $10,000. It would be an advance for the CIBC deal.

The victim, Keith Hobbs said, smelled of alcohol, but seemed coherent, and Keith and Marisa Hobbs did go to the home to get the cheque, and while the cheque was initially accepted, Keith Hobbs said he "felt a little queasy" about it, and decided not to cash it.

The victim still agreed to write a letter to CIBC on behalf of Keith Hobbs. There would be no fee attached for writing the letter.

Keith Hobbs also testified about an incident involving Heli Kijanen: he received a phone call from her, saying the alleged victim had taken a cab but didn't pay the fare. She requested he do it for the victim, and the payment was made the next day.

The owner of the cab company didn't want to press charges, Keith Hobbs told court. He then spoke with now-retired Thunder Bay police chief J.P. Levesque about the matter, telling Levesque there was no need for charges against Kijanen.

Keith Hobbs and Levesque had an agreement in place to call each other directly when such matters arose.

Keith Hobbs also said he'd hoped the victim would repay the favour he did for the alleged victim.

Hobbs said he, along with Marisa and Mary Voss all had a barbeque at the alleged victim's home on November 13. It was a nice evening, he said, with "nice steaks, nice conversation."

The next day, Hobbs said he first watched a series of videos that showed the victim acting in a threatening matter.

He got emotional on the stand while discussing the matter. After seeing the videos, he and Marisa became concerned for the safety of Voss, and she was invited to stay at their home, Keith Hobbs testified.

They repeatedly discussed having Voss go to the police about the victim's behaviour, but Keith Hobbs admits he didn't know what to do.

Keith Hobbs says he first heard about the plan for the victim to buy a house for Voss on Nov. 15, 2016; however, he testifies he was told the idea first came up a few months earlier, in July of that year.

Voss, Keith Hobbs told court, was pre-approved for a $200,000 mortgage, and the victim had already offered to buy her a $250,000 home. Hobbs suggests Voss ask for the $250,000 in cash, and that way, she could combine everything and get a $450,000 home.

Then Keith Hobbs said Graham, who was also in the courtroom, has been staring at him and shaking his head. Graham, Keith Hobbs said, is "intimidating," and Greenspan suggested Graham leave the courtroom.

Graham was allowed to remain, although the judge did condone any type of behaviour that could be seen by a witness.

Testimony covered negotiations between Keith and Marisa Hobbs and the victim, over the purchase of a house for Voss. During this time, Keith Hobbs told court, it was thought that Voss would be entitled to some of the victim's assets, since they had been living together since 2013.

Keith Hobbs suggested the victim give Voss one of the homes they already owned, and the victim said they were drafting up an agreement for the purchase of a house. Keith Hobbs said he didn't know what, specifically, the agreement contained.

There was also conflict between Keith and Marisa Hobbs. Text records show they would tell each other to "go to hell," and argue over who was the better negotiator.

He did testify, however, that he didn't have any personal financial interest in Voss getting a home, and the text records prove that. The victim offered to loan money to Keith and Marisa Hobbs, but the offer was declined.

"If I were an extortionist, I would have taken the money and reneged on the loan," Hobbs told court.

Hobbs also denied allegations that he threatened the victim in a phone call on Nov. 17. He wasn't part of any call involving the victim that day, he said.

Nov. 17 was also the day Keith Hobbs gave Loverin a copies of the videos of the victim. However, in court on Wednesday, Keith Hobbs testified that was intended to show Loverin the type of person he was working for.

He told Loverin not to get in trouble doing the victim's "dirty work."

Meanwhile, negotiations continued, with Marisa Hobbs being told by the victim to go look at houses with Voss, Keith Hobbs testified.

Another house-purchase agreement was drafted up, this time by Keith Hobbs, with the victim's approval. The victim would need to approve the purchase of a specific home, but they'd need to be sober at the time, as well; earlier testimony indicated the victim was drinking heavily at this time.

A clause in the agreement allowed Voss to stay at another home owned by the victim; she had still been staying at the Hobbs home, but they were running into space issues, court heard, and a non-disclosure clause was included, as well.

Everyone signed the document. Keith Hobbs told court he interpreted the victim's participation as an effort to buy their way out of trouble.

Keith Hobbs told court he still intended to give the signed agreement and USB sticks containing videos of the victim to Thunder Bay Police Chief JP Levesque, after the documents were signed.

But then, Voss spoke to Marisa Hobbs about a physical altercation involving her and the victim. Voss ended up back at the Hobbs home, and this was when he told the victim "pack your toothbrush and your pyjamas, you're going to jail."

However, Keith Hobbs testified he then grew concerned when he saw Loverin's vehicle in the victim's driveway.

Discussion again turned to the videos. Keith Hobbs denied allegations that he had provided the videos to another officer who owed him a favour.

He said police didn't even have the videos until Nov. 19, when officers went to his house and were given them. He also gave them the agreement the parties had signed.

Greenspan asked Keith Hobbs why he waited to go to the police, given his long-running concern for Voss. Keith Hobbs replied that he was conflicted over what he should do.

Greenspan ended his questioning, and Voss's lawyer George Joseph began his cross-examination, saying Voss eventually went to police, and reported the alleged victim for another crime.