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Shofar FTP Archive File: orgs/canadian/sirc/heritage-front/HF-VI-Funding


In this section, we examine CSIS funding of its Source in the Heritage 
Front. We do so using Human Source Branch files, both from Headquarters 
and Toronto Region, interviews with Human source officials and the source 
handler, and an interview with the Source.

   6.1 CSIS Payments to the Source

According to Service policy, Human sources ... shall not normally be 
offered any form of inducement or compensation, other than the assurance 
of confidentiality and payment in money or payment in kind, in exchange 
for providing operational assistance to the Service."

      6.1.3 Payments for Operational Assistance

CSIS pays sources for "operational assistance" usually information. It 
provides these payments according to an annual budget.

The Service reimburses sources for monies spent while assisting the 
Service. The Service accounts for some of the expenses as part of the 
monthly payments to the source. Trips by the sources, however, are 
accounted for separately. This is done, in part, because the Service 
provides travel advances.

The Service noted that, on average, expenses were $260 per month over 
the seven years, an amount which was, in their view, reasonable.

The Service compensated the Source from time-to-time for special trips. 
Usually, the Investigator would estimate the likely cost of the trip 
before the fact, and provide the Source with a cash advance. The Source, 
on completing the trip, would provide the handler with receipts, and the 
handler would then calculate the balance from the advance. All 
expenditures relating to trips, throughout the period, are rigorously 
accounted for by receipts.

The handler also compensated the Source for daily expenses. He usually 
claimed for regular expenses once a month[2].  These expenditures were, 
primarily, for meals, telephone use, and transportation.

Until January 1990, the "Source Financial Statements" would list items 
and the corresponding receipts obtained from the Source. Beginning in 
February 1990, the handler estimated expenses, and would periodically 
ask the Source for receipts.

According to the CSIS Operational Manual, to obtain authorization, the 
handler has to fill in the "Source Financial Statement", and the Human 
Source office has to review the statement and ensure that "receipts are 
attached or an explanation is given when receipts are not obtained".

According to the records we examined, the Source frequently divided up 
expenses with other Heritage Front members, and he was reimbursed 
accordingly by CSIS. For example, CSIS paid the source only $67 dollars 
on two Radisson Hotel invoices totalling $202 dollars.[3] The invoices 
had a hand notation that the bill had been split three ways. Such 
invoices, and hand notations, were common.

From time to time the Source would agree to pay dues and make 
contributions to the Heritage Front. For example, one telex shows that 
the Source listed people making donations, and put himself down for $40. 
Another telex shows that the Source obtained a "Nationalist Party 
citizenship card". Recipients "were to pay $50 on receipt of their 
card". All group members were asked to "donate some personal money" to 
defray the printing costs of the Heritage Front publication "Up Front". 
There is no evidence that the Source ever contributed to Droege's 
legal fees. 

According to the Source, as a Member of the executive, he was generally 
exempt from paying dues and paying for the magazine subscription. Many of 
the contributions took the form of paying for group meals, transportation 
or accommodation. He noted that he had made an initial contribution of $70 
to $100 dollars to the Heritage Front. On one occasion, he had had to come 
up with several hundred dollars for hall rental, of which all but $50 was 
reimbursed. He also said that he had pledged $75 to $100 to help defray 
the cost of the Metzger's trip, though this may have been written off 
against a lunch for Droege's lawyers. He paid 25% (probably $200 - $300) 
of the publication costs for the first issue of the Heritage Front 
magazine, "Up Front".  He provided $90 - $100 towards the Front hotline, 
but was reimbursed by Droege and, on a special occasion, he donated some 
money because Droege wanted the hotline to continue. Generally, according 
to the Source, he made no direct contributions, although he would buy 
T-shirts and the like from time to time.'

The Source said that he always claimed for what he spent, and he does not 
think that CSIS provided funds for the creation or maintenance of the 
Heritage Front through any other means.[5] He said that he was "cheap", 
and Front members knew "he would not part with a penny".[6]

The Source said that he sometimes paid lunch expenses, during Court 
hearings. Droege would ask him to pay the bill and would then reimburse 
him. In 1993, there were five or six times when the bill might have been 
$50 for sandwiches. The Source added that Droege reimbursed him 
dollar-for-dollar about 50% of the time.

The handler said that Droege and the Heritage Front collected money in 
a haphazard manner. He thought dues were between $25 and $50. The Source, 
like other leaders, would frequently duck paying dues. According to the 
handler, the Source contributed no more than $1,000 over five years in 
donations to the operations of the Heritage Front. This takes into account 
postage, letterhead paper, general office supplies, donations to the 
Heritage Front legal fund, and $25 here and there. The Source said that 
he may also have made a $25 contribution to the costs of Ken Barker's 
hotline. [7]

The handler discussed the treatment of dues and contributions as 
expenses. He noted that he was not required to itemize and account for 
specific expences but that he himself vetted expenses from time to time.

He also noted that the Source was supposed to tell him about any 
contributions he made to the HF, and that any large amounts were to be 
approved first by Headquarters.'

In our review of the expenses files, we found no reference to any 
contributions or donations. In our review of the source administrative 
files, we found no applications to Headquarters for donations or 

   6.3 Loss-of-Employment Corpensation

CSIS officers stressed to the Source that the payments were temporary, 
and actively encouraged him to look for other work.  At one point, he 
was asked for "a monthly report detailing [his] efforts to find a job".

   6.4 The Source's Financial Situation

Evidence from many sources indicates that the Source did not spend 

A review of his 1989 and 1990 "meals" expense receipts indicates that he 
only infrequently (i.e. perhaps four or five times a year) "treated" anyone. 
Many of the available bills indicate that he paid (and was reimbursed for) 
only 1/4 or 1/3 of the bill. Most of the meal bills were for $50 or less. 
CSIS did not keep itemized receipts after 1990.

Nor was he generous with CSIS money. Be apparently gave few gifts that 
CSIS was specifically billed for; total miscellaneous expenditures for 
seven years are less than $260.

According to the handler, the Source did not have much to spend. Be earned 
between $35,000 and $40,000 per year from his employment, including car 
allowances and benefits. He supplemented this with odd investigation jobs. 
Considering the time spent in his employment and his work for CSIS, however, 
the handler indicated that he did not have much time for odd jobs. He did 
some skip tracing, but not very much or for very long: no more than $5,000 
in total.[12]

The handler said that the Source was thrifty, as were other Heritage Front 
members. Also, he was in some financial difficulty. He was always in debt 
because he used his credit card for expenses and maintained high debit 
balances. Also, his car (a 1987 or earlier year Ford) was always breaking 
down. Be owed money from a failed business as well. His common law wife 
was not working, and he had to support the family. According to the 
handler, the Source spent his money on himself not on the movement.[13]

The Source said that he had very little money. He was known within the 
Front as not wanting to part with a penny, and he certainly did not have 
enough money to finance or underwrite Front activities.[14]

In the CSIS Human Source files, we did not find any discussion of lavish 
spending by the source. The Service, of course, did not know precisely 
what the Source was spending his income on.

   6.5 CSIS Assistance To The Heritage Front

In our review of financial and source administrative files, we found no 
indication of any intention to financially support the creation, 
development, or continuation of the Heritage Front, or any other groups. In 
no files predating August 1994 did we come across any discussion of the 
potential of Service payments to assist the Heritage Front. To the best of 
our knowledge, it was never a subject of Service discussion.

According to the financial files, the Source did pay for vehicle rentals, 
shared accommodation and the like. These costs were then shared with other 
Heritage Front members. In the case of meals, the Source infrequently 
picked up the bill.[18] More frequently, receipts indicate that the source 
paid for a portion of the bill, and that the Service reimbursed the Source 
for this portion only. According to CSIS files, "many of the expenses were 
paid on a cost-sharing basis (one would pay one time and someone else the 

CSIS noted that the majority of the transportation and meals costs were 
paid to the Source as business expenses incurred on their behalf and in 
no way supported the Heritage Front.[24]

We asked Al Overfield and Wolfgang Droege if anyone made significant direct 
contributions. They indicated that everyone would share in costs, and that 
this meant at times giving as much as a few hundred dollars at a time, but 
that, in the words of Wolfgang Droege, there were "no large lump sum 
payments ". Al Overfield said that the Heritage Front was perpetually 

      6.5.1 Other CSIS Fundinq of the Heritage Fund

We found no other indication of any funds being provided to the Heritage 
Front by CSIS.

      6.5.2 Funding of American White Supremacists

When the Metzgers were deported, they were unable to take their flight 
from Toronto, and had to have a ticket reissued. This resulted in an 
additional expense. The Source paid his share of the additional expense, 
and the handler is not certain whether he was reimbursed by Droege.[25] 
We found no other indications of funds provided to white supremacists.

According to the files, Sean Maguire, another American white supremacist, 
came to Canada with $25,000 to deposit in banks.  He deposited most of 
the money in various banks, and left the remainder at Grant Bristow's 
home. The Source told us that Bristow later returned an unspecified amount 
to Maguire.[26]

We asked Wolfgang Droege about possible funding. Be indicated that he had 
no direct knowledge of any such funding. He noted that Maguire had called 
him up to complain that Bristow had not returned $40,000 he had left with 
Bristow as an investment. He said that Bristow subsequently returned the 

We asked Metropolitan Toronto Police Officers about the funding of foreign 
white supramacists They stated that they saw no money or information going 
to or coming from south of the border; people in the movement were 
supported by UIC, welfare, donations, subscriptions, and some jobs.[27]

   6.6 Value of Information and Assistance

Over a seven year period, the Source was paid less than $80,000 for 
actually assisting the Service.

The evaluation of the worth of a Source is always subjective. However, 
the Source provided a great deal of information.

According to a CSIS assessment:

   "Between the Years 1989 and 1994, Human source coverage has provided 
   the Service with a high volume of quality information concerning white 
   supremacist activities in Canada, the United States and, to some 
   extent, Europe. This coverage enabled the Service to monitor 
   developing trends within the violent racist movement as well as to 
   warn of potential public confrontations involving violence...

   CSIS information primarily from fthe Sourcel led to the arrest and 
   deportation of a number of leading international white supremacists:

   Steve EAMMOND (01/91)
   Sean HAGUIRE (09/91)
   Tom METZGER (06/92)
   John METZGER (06/92)
   David IRVING (ll/92)
   Dennis MAHON (93/01)

   CSIS also provided information to the police which led to the arrest 
   of Ken Barker, a Heritage Front member, who was charged with armed 

   Since 1989, CSIS has produced over 80 threat assessments on the 
   activities of white supramacists [28] We have provided advance 
   information to police and government officials on the potential 
   for violence at demonstrations and other events.

   In addition, the Service has produced 10 detailed CSIS Reports on 
   the status of the white supremacist and organized racist community 
   in Canada. "[29]

The Source also provided police with information that may
have saved individuals from harm. For example, the handler told
police about a Skinhead plot to disrupt an anti-racist march by
hurling bottles and rocks from downtown Toronto rooftops. Police
subsequently manned the rooftops. He frequently reported on
activities involving guns and other weapons, providing information
which was passed to the Metropolitan Toronto Police Force.

The handler was asked about the value of the operation.  He indicated 
that he saw it as having severely damaged the right wing in Canada and 
the USA and "they know it". He stated that the organization is turning 
in on itself. He added that if an organization like The Order in the 
United States had started up in Canada, CSIS would have been in a 
position to know about it.[30]

We do not know for sure that the Source was the direct cause of the arrest 
of any HF members. According to the Metropolitan Toronto Police, however, 
in 1993 they and the Ottawa Police arrested about 15 members of the EF and 
the Church of the Creator (COTC) for various offenses.[31]

   6.7 Conclusions

There is no indication that CSIS consciously provided funding for the 
creation, development or nurturing of the Heritage Front. Indeed, CSIS 
Human Source files suggest that CSIS officers never discussed the impact 
of funding on the growth of the Heritage Front.

There is no way of determining objectively if the Source was overpaid. 
However, only about $79,000 was paid for information, the rest being for 
expenses, and loss-of-employment compensation.

The Source was paid at the rate of $30,000 annually for fifteen months, in 
compensation for losing his job. This payment based on an estimsted 
employment income of $41,000.

Service accounts suggest that expense monies from the Service were by and 
large not spent on other Heritage Front members; though some money was 
most certainly spent for shared vehicle expenses and the like. The CSIS 
financial records indicate that CSIS never paid for airline tickets for 
other Heritage Front members.

We do not know, with certainty, what the Source decided to do with the 
money he obtained from CSIS. He and his handler indicate that he was a 
penny pincher, and had substantial bills to pay.

The Source said that he made minor contributions and donations to the 
Heritage Front. Service financial records, however, contain no entries 
for donations and contributions. 


2. In a few cases, the Source would make no claims for a month.
3. Source Financial Statement, April, 1989.
4. SIRC interview of Source
5. SIRC interview of Source 
6. SIRC interview of Source 
7. SIRC interview of Source
8. SIRC interview of Handler 
12. SIRC interview of Handler
13. SIRC interview of Investigator
14. SIRC interview of Source
18. We have detailed expenditures and receipts for 1989 and 1990.
24. Correspondence from CSIS, November 18, 1994
25. SIRC interview of Handler.
26. SIRC interview of Source.
27. SIRC interview of the Metropolitan Toronto Police Force.
28. According to the Service, wwhile it is not possible to quickly
    attribute the contents of specific assessments to [the Sourcel, the
    intelligence from this individual is seen as a significant
    contributor". Staff estimates that about half derive from, or are
    likely to derive from, the Source.
29. "value added", undated.
30. SIRC interview of Handler
31. SIRC interview of the Metropolitan Toronto Police Force.

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