Mr. Ronald Hubert Kelly

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  www.thepanamanews.com/pn/v_11/issue_14/news_01.html - [Cached Version]
  Published on: 11/14/2009    Last Visited: 11/14/2009  

  Back in May of 1979, Kelly was a Catholic priest in the small Newfoundland town of Piccadilly. He was arrested for and pleaded guilty to ten counts of sexually abusing five boys between the ages of 13 and 17.
  
  One of the boys was paid $5 to perform fellatio while Kelly sat at his desk in the parish office. Another time, Kelly visited a parishioner, who served him drinks, put him to bed and provided a boy to service his sexual desires. In another instance, two boys tried to lock the priest out of their bedroom at night, but were scolded by their mother, who let Kelly in for his idea of fun and games.
  
  After his arrest, Royal Canadian Mounted Police Constable Murray Urquhart testified years later before a government commission, Kelly was in denial.
  ...
  Two days after that, Seabright imposed a two-year suspended sentence, on condition that Kelly receive therapy at an Ontario center for the treatment of Catholic priests with emotional problems.
  ...
  The prosecution appealed the lenient sentence, but Seabright was upheld by a three-judge panel, which opined that Kelly was "no criminal in the common sense of the word."
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  After a few months of therapy, Kelly resumed his priestly vocation, this time in two Ontario parishes. After a couple of years of that, he was transferred to the central offices of the Archdiocese of Toronto and rose to become the top financial aide to Cardinal G. Emmett Carter. In that post he oversaw the construction of new churches, acquired land for cemeteries and managed the church's many real estate holdings. In 1984 he arranged for hotel accomodations for 1,000 dignitaries who came to town for Pope John Paul II's visit to Canada.
  
  The following year, Kelly received a pardon from the conservative government of then-Prime Minister Brian Mulroney.
  ...
  And in the course of the Hughes inquiry, Father Kelly's case came up. The record may have been sealed, but memories had not been suppressed.
  
  Complaining that his case had nothing to do with the infamous St. John's orphanage, Kelly took a leave of absence from the archdiocese, then shortly thereafter renounced his vows.
  
  With his knowledge of finance and real estate from working with the archdiocese, and with ties to business, media, labor and political leaders also acquired in the course of his priestly duties, Kelly went into the consulting and real estate businesses.
  
  Backed by Howard Johnson's executive Stephen Phillips and investments from the 240,000-member Canadian Commercial Workers Industry Pension Plan, Kelly began to buy and develop hotels, convention centers, resorts, shopping malls and food processing plants.
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  On the way up the economic scale to opulence, Kelly cultivated political ties across the spectrum. Ontario Premier Bob Rae, who went on to lead his left-leaning New Democratic Party to the most catastrophic election defeat in its history, was there to cut a ribbon at one of Kelly's real estate openings. Kelly hosted a Toronto fundraiser for Canadian Prime Minister Jean Chretien, who later ended a long political career by handing the reins of the Liberal Party to his successor Paul Martin.
  ...
  The Toronto Sun noticed the apparent business success and the humiliating sex abuse convictions, and went to talk with Kelly about these things in 1997. The result was a sympathetic article of the up from adversity by the bootstraps variety. In that article Kelly attributed his sexual misconduct to alcoholism and claimed that he had dried out after his arrest. Without much apparent skepticism the Sun thus gave the ex-priest a forum to pose as that mythical beast so often favored in certain religious circles, the reformed former homosexual. Kelly said that if the right woman came along he might marry. About his pedophile past he said "The way I deal with it is 'that's the past and I dealt with it' and I think I've gone for the right treatment ... and I've gotten on Like so many other North American capitalists, Kelly began to diversify offshore.
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  In 2001, the Americas International Bank folded, but not before the bank paid Kelly $3 million, which was deposited in the Banco Atlantico here. Last year a Bahamian court held that the payment amounted to a fraudulent preference, but Kelly is appealing.
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  In 2003, Kelly and RHK Capital began to default on their obligations.
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  The pension fund trustees claim to have cut their ties with Kelly, which their critics in the labor movement dispute by citing offices and telephone numbers shared by the fund and by RHK.
  
  Meanwhile, if RHK Capital may arguably be insolvent its namesake is apparently in much better financial shape.
  
  Kelly bought one of the landmarks on the road to El Valle, the sprawling estate with the faux medieval wall once owned by former El Siglo publisher Jaime Padilla Beliz.
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  According to neighbors, Kelly employs six or seven men full-time to maintain the premises. But the compound that the pedophile ex-priest bought from the former necro-porn publisher is the smaller part of Kelly's real estate holding in El Espino. Kelly has also acquired a much larger, mostly wooded adjacent tract to the south of Padilla Beliz's old place and neighbors say that in all Kelly's holdings encompass at least a square kilometer and probably much more than that.
  
  But does Kelly have any legal right to be here at all? The unanimous consensus of legal opinion sought by The Panama News is that he does not.
  
  A spokesman for Migracion said that for any foreigner seeking a visa to live in Panama, a lifetime judicial history is required. He added that people with known convictions for child molesting are not allowed in Panama.
  ...
  Ronald Hubert Kelly has attended functions of the local Canadian Association, and is known to some members of the local gay community. But while there are those who are reputedly impressed by the wealth the man displays, both the Canadians and the homosexuals with whom this reporter talked about Kelly would prefer that he be expelled from Panama.

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  nassau.temp.lexi.net/articles/article536.php - [Cached Version]
  Published on: 7/20/2005    Last Visited: 1/18/2009  

  The fund's Bahamian investments were part of a multi-million-dollar lending spree to a former priest named Ronald Hubert Kelly, who had remade himself into one of Canada's top real estate tycoons in only a few short years.
  
  Kelly is an interesting story in his own right. As a small town parish priest, he pleaded guilty in 1979 to indecently assaulting five boys, was pardoned a few years later and went on to become a top aide to Toronto's Cardinal, Emmet Carter.
  
  He left the priesthood in 1990 and launched a meteoric career as a real estate developer. Risking his life savings to pull together enough financing to buy a bankrupt Toronto hotel, he went on to buy more properties and eventually began rubbing shoulders with Canada's business and political elite.
  
  Kelly's company, RHK Capital, acquired malls, hotels and office buildings across Canada and became the pension fund's biggest investment partner. According to the Toronto Star, the CCWIPP bankrolled Kelly's early hotel acquisitions and the union gained new members in return. By the time they parted ways a few years ago, the fund had invested over $200 million in Kelly's projects.
  
  High on the list was the $90 million acquisition and redevelopment of the landmark British Colonial Hotel in Nassau, which Kelly bought in 1997. The following year he borrowed more pension fund money to buy the bankrupt South Ocean Beach Resort for $18 million.
  
  Former finance minister Sir William Allen recalls that the government was pleased when contact was first made with Kelly on the British Colonial project: "At the time we were keen to get foreign investment and the BC was seen as a possible catalyst for the redevelopment of the city, which was even more depressing then than it is today...But it seemed to me that the critical mass required by the South Ocean project was never contemplated by RHK Capital."
  
  According to a former local banker, "The BC project had a very positive impact on the Bahamas. There are many reasons why it was not a roaring success, but most relate to the country and the way it frustrates developers in doing business. Kelly actually made a contribution and did not benefit personally."
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  And in early December, 1999 Ron Kelly hosted government leaders and VIP's (including his former boss, the Cardinal of Toronto) to a lavish opening party. It was a glittering affair, made even more so by the knowledge that the restoration had ended up costing over $90 million.
  
  "The resurgence of the British Colonial symbolises the resurgence of the Bahamas," Mr Kelly told the assembled high and mighty at the opening event. "The BC is the heart and soul of this country...and the whole concept was to preserve the history and integrity of the building. It is one of the big names in the global hotel market."
  
  But even before the restoration ended, Kelly had run into financial problems. When he defaulted on his loan in July, 2000, the CCWIPP - through a subsidiary - stepped in to take over.
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  Ron Kelly - now said to be in Panama - will no doubt breathe a sigh of relief.

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  groceryworkers.org/News_Item.2005-07-09.6936571141/ - [Cached Version]
  Last Visited: 12/8/2007  

  The Star's own investigation, which started earlier this year, found extensive ties between Ronald Hubert Kelly, a former Canadian priest, who now lives in Panama, and the pension plan.Fund records and other regulatory filings show the plan invested more than $235 million alone with companies where Kelly had an interest from 1995 to 2002.They indicated the plan poured at least $142 million in the Caribbean ventures over a four-year period when Kelly played a role.Kelly also had ties to other risky businesses that the plan had invested in, including a now-bankrupt potato processing plant in Idaho and a shrimp factory in Newfoundland, which sank in 2001.
  
  The commission's report does not mention Kelly's background but he pleaded guilty in 1979 to 10 counts of indecent assault on five boys in Newfoundland.
  
  Kelly, now 62, did not serve any jail time and later worked for the Roman Catholic Archdiocese of Toronto.
  
  He left the archdiocese in 1990 after some details of his past became public and began building a real estate company in 1992 with heavy backing from the pension plan.
  
  A confidential consultant's report for the Bahamian government on two of Kelly's developments in the Bahamas shows they have lost millions of dollars.
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  Although it spent heavily in its Caribbean ventures with Kelly and his company RHK Capital, the plan has also invested millions more there since cutting ties with him a few years ago.
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  The commission's report, which followed a two-year-probe, also says the pension plan told the commission that Kelly's RHK Capital is bankrupt.
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  Financial records show the plan dealt with Kelly until at least 2003.
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  Kelly, whose RHK Capital still has a telephone number in the Toronto area, did not respond to numerous requests for an interview to answer questions about his roots with the pension plan in the 1990s, specific real estate investments, success rates and reasons for the eventual fallout with the fund.
  
  But Kelly told a promotional business magazine in the Bahamas in 2003 that his religious faith underpins his business work.
  
  He said part of his "religious experience was painful" without indicating his past as a priest.Kelly added he never set out to become a millionaire.
  
  "I am driven by different motivations," Kelly said, noting he is winding down his career a little bit.
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  In March 1997, Propco 34 issued a letter of commitment to lend $10 million (U.S.) to RHK Capital, the operating arm of Ronald Hubert Kelly.
  
  Kelly is a former Canadian priest, convicted in 1979 of sex offences in Newfoundland.He had become a key borrower of pension plan funds.
  
  It was a three-year loan at 11 per cent annually.Kelly's RHK Capital used it to buy the British Colonial Hotel in downtown Nassau out of bankruptcy.
  
  At one time, Canadian industrialist E.P. Taylor had a stake in the historic hotel.Built in 1900, it had turned into a "flophouse" before Kelly and the pension plan came to the rescue, according to a promotional review.After Kelly's company spruced it up, the hotel featured 291 rooms, a marble tiled lobby studded with palm trees, skylights, dance club, large pool, spa, lengthy beach and a business centre.Still the island's social and business centre, movie producers thought so much of the hotel they used it for scenes in two James Bond movies.
  
  By 2001, Kelly had run up a much bigger bill with the pension plan, with loans for the Colonial hotel property topping $43.5 million for principal and interest.
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  Kelly acknowledged in a Bahamian promotional magazine in 2003 that he exceeded his budget in the hotel's restoration."The bankers would say I was crazy as it ran over budget," he said.

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  www.shamrockcorporation.com/news/2005/07_05/07_11_05.ht - [Cached Version]
  Published on: 7/11/2005    Last Visited: 5/19/2007  

  The Star's own investigation, which started earlier this year, found extensive ties between Ronald Hubert Kelly, a former Canadian priest, who now lives in Panama, and the pension plan.Fund records and other regulatory filings show the plan invested more than $235 million alone with companies where Kelly had an interest from 1995 to 2002.They indicated the plan poured at least $142 million in the Caribbean ventures over a four-year period when Kelly played a role.Kelly also had ties to other risky businesses that the plan had invested in, including a now-bankrupt potato processing plant in Idaho and a shrimp factory in Newfoundland, which sank in 2001.
  
  The commission's report does not mention Kelly's background but he pleaded guilty in 1979 to 10 counts of indecent assault on five boys in Newfoundland.
  
  Kelly, now 62, did not serve any jail time and later worked for the Roman Catholic Archdiocese of Toronto.
  
  He left the archdiocese in 1990 after some details of his past became public and began building a real estate company in 1992 with heavy backing from the pension plan.
  
  A confidential consultant's report for the Bahamian government on two of Kelly's developments in the Bahamas shows they have lost millions of dollars.
  ...
  Although it spent heavily in its Caribbean ventures with Kelly and his company RHK Capital, the plan has also invested millions more there since cutting ties with him a few years ago.
  ...
  The commission's report, which followed a two-year-probe, also says the pension plan told the commission that Kelly's RHK Capital is bankrupt.
  ...
  Financial records show the plan dealt with Kelly until at least 2003.
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  Kelly, whose RHK Capital still has a telephone number in the Toronto area, did not respond to numerous requests for an interview to answer questions about his roots with the pension plan in the 1990s, specific real estate investments, success rates and reasons for the eventual fallout with the fund.
  
  But Kelly told a promotional business magazine in the Bahamas in 2003 that his religious faith underpins his business work.
  
  He said part of his "religious experience was painful" without indicating his past as a priest.Kelly added he never set out to become a millionaire.
  
  "I am driven by different motivations," Kelly said, noting he is winding down his career a little bit.

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  www.abacouncensored.com/forum/viewtopic.php?t=879&highl - [Cached Version]
  Published on: 5/4/2007    Last Visited: 5/4/2007  

  What is strange about this deal is the amount of Crooks, Criminals and Bungy Bandits involved--Ronald H. Kelly, a Former Priest, a Swindler and Fraud Expert, who had ripped off the Retired Communities Pension Fund in Canada, his side kick, Mr. Rowe, Hubert Ingraham, Morley and Brown.

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  www.ufcw.net/articles/docs/sins_of_the_father.html - [Cached Version]
  Published on: 1/29/2001    Last Visited: 11/13/2005  

  Ron Kelly, real estate tycoon and recipient of hundreds of millions of dollars from UFCW Canada's pension fund, CCWIPP, has been found guilty of receiving a fraudulent transfer of $3 million from a Bahamas-based bank shortly before it collapsed in 2001.
  
  According to a report in the Bahamas Tribune and KYC News, Kelly originally tranferred the $3 mil from bank in Panama to buy a 50% stake in the Americas International Bank in the Bahamas in March 2001.In September of that year, he transferred the $3 million back to the Banco Altantico (Panama) to pay down a substantial portion of his overdraft there.A month later, the AIB went under.
  
  A liquidator appointed to oversee the wind up of the Bahamian bank challenged the legality of the transfer on the basis that it gave Kelly, who must have known of the bank's imminent collapse, unlawful preference over other creditors.The liquidator also alleged that some the "AIB's clients appeared to have used the bank as a vehicle to launder funds from fraudulent Ponzi schemes.At least one of these allegedly had ties to the Tampa-based Traficante family, one of the US' leading organized crime gangs".
  
  According to the reports, Kelly denied that he was a Director and shareholder in the business and claimed that the $3 milion was being held in escrow while he waited for regulatory approval of his status as a shareholder and that the money was returned to him when approval was not given.He filed 100 pages of affidavits and exhibits in his defence.
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  "The evidence does not support Mr Kelly's case", he stated.
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  Kelly is reported to have developed a professional relationship with the Gary Christie over a seven-year period in which Kelly invested heavily in Bahamas' businesses such as the British Colonial Hotel and the South Ocean Beach Resort.
  
  The hundreds of millions of dollars Kelly pumped into these businesses came from the UFCW's Canadian Commercial Workers Industry Pension Fund.
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  There's a common thread that winds it's way through many of these investments - Ron Kelly, former Catholic priest and real estate tycoon whose empire was built on the backs, or at least the pension money, of thousands of UFCW members.The Bahamas property was one of a number of Caribbean hotels Kelly purchased in the late 1990's.AFM was a business he is believed to help found and one that swallowed up a number of hotels he purchased in the early 1990's (with CCWIPP funds).The office building at 135 Queen's Plate contains a nest of businesses with connections to Kelly or CCWIPP or both.
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  Within a few months of his quiet departure from the priesthood in 1990, Ronald Hubert Kelly got a his first big break when a company he'd set up, called Kelloryn, purchased a bankrupt Toronto hotel.Fifteen million dollars of the financing he needed to buy what was then the Skyline Triumph Hotel, was provided by the CCWIPP through two corporations that it "beneficially owned" - I.F. Propco Holdings 14 Inc. and I.F. Propco Holdings 16 Inc.The UFCW's end of the bargain was voluntary recognition for the workers at the hotel. [For a more detailed account of the UFCW's involvement with Kelloyrn see another of our featured articles].Kelly would go on to purchase six other bankrupt or financially troubled Canadian hotels.By 1997 he had built an empire worth $500 million.His interests included hotels in Canada, Jamaica and the Bahamas, shopping malls in London and Ottawa Ontario, various other commercial and residential holdings across Toronto, London, Ottawa, Hamilton and Peterborough and a fish processing plant in his native Newfoundland.
  
  UFCW Pension Plan Trustees Put Their Hands Together for Father Kelly
  
  Although the extent of the CCWIPP's involvement with Kelly and his companies is not known, from what we can tell, Kelly has received more than $100 million from the pension plan over the past decade and his relationship with UFCW and CCWIPP officials has been especially close.
  ...
  Ron Kelly's Vulgar Displays of Power
  
  But behind Kelly's business successes there was another story.In 1997, he discussed it publicly with a Toronto newspaper.
  
  Kelly has never spoken publicly about the past or present and reluctantly agreed to an interview, saying: "I guess it's better to talk than let you take a shot in the dark."
  
  In 1979, Kelly pleaded guilty to 10 sexual assaults on five boys, ages 13 to 18, in the remote Newfoundland community where he'd been parish priest for six years.Court transcripts show the assaults mostly involved Kelly's fondling of teens while he was in a drunken haze.In the most serious case, a sober Kelly had a boy perform fellatio and afterwards gave him $5.The Toronto Sun, July 20, 1997
  
  Despite the serious nature of his offences, Kelly never did any jail time.Four days after his arrest, he entered a guilty plea and for his transgressions and received a suspended sentence of two years less a day.
  
  A condition of this exceptionally lenient sentence was that he took treatment through a church-run facility for wayward priests in a small community outside of Toronto.
  
  After completing his stint in the treatment facility, he was transferred to a parish in Mississauga, another community outside of Toronto.In 1985, he was granted a full pardon of all 10 convictions, effectively clearing him of a criminal record.
  
  Kelly did well for himself in the big city.By 1984 he was acting rector of historic St. Michael's Cathedral and was part of the welcoming committee for the papal visit to Toronto.By 1990, he was vice-chancellor of temporal affairs in the Archdiocese of Toronto and a key aide to Cardinal G. Emmett Carter.That year his name was raised at the Hughes Inquiry, a commission of inquiry into widespread sexual abuse of young boys at the Mount Cashel Orphanage in Newfoundland in the 1970's.Although he would claim that he had no idea why his name had come up in the course of the Inquiry, Kelly almost immediately took a leave of absence and never returned to the church.He would run from the rectory and dive right into the UFCW's enormous pension fund.
  ...
  When Kelly was appointed parish priest in Our Lady of the Cape, Nfld., in 1973 the Roman Catholic church still ran the villages - they have names like De Gras, Piccadilly - like company towns.In Kelly's parish, for instance, the church ran the schools, the clinic, even the ambulance.
  
  Young, good-looking, and "able to talk to anyone", Kelly was a local hero.
  
  As Const.Murray Urquhart, the RCMP officer who investigated Kelly's case, says, "The people are devout.It was a very special thing when the priest came to visit."
  
  And visit Kelly did.His modus operandi was to pay an unexpected call to a parishioner's - he was usually drunk - and have a few more drinks, whereupon he would suggest he sleep over.
  
  In one of the cases to which Kelly later pleaded guilty - in May 1979, he was convicted on 10 counts of indecent assault on five boys - two boys refused to open their bedroom door to him, but their outraged mother insisted they do so.
  
  Did the UFCW's CCWIPP Trustees care?What about then- UFCW Canadian Director, Tom Kukovica?Did he know or care about the history of the man whose company would be the "investment destiny" of millions of dollars worth of union members' pension funds?
  
  Granted, by the time the CCWIPP Trustees began their association with Kelly he had already been pardoned, but it did not mean that he did not commit the offences to which he had pleaded guilty.
  
  It just meant he no longer had a criminal record.
  
  Did they consider what the pension plan members might think about their association with him if the members ever became aware of his disturbing past?
  
  Given the range of investment options available to a large pension plan, they could easily have passed Kelly over in favour of other entrepreneurs seeking capital.
  ...
  Why, the UFCW is even a tenant of Kelly's.UFCW Local 351 (the current incarnation of the old Textile Processors' Local 351) is located in a building that at one time belonged to RHK.
  
  Our Father who art in - Panama?
  
  Where is Ron Kelly now?All of the Kelloryn Hotels that he acquired in the 1990's ended up with AFM Hospitality and have been sold off.
  
  The last of these, the former Skyline Triumph, into which the CCWIPP put $15 million in 1992, was sold last year for $12 million.Kelly unloaded two large financially troubled shopping malls to the CCWIPP's Propco companies in 1999 and 2000.
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  An unconfirmed report has Ron Kelly in the tax haven of Panama.

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  Apartments provide highest profits of any real estate... - [Cached Version]
  Published on: 7/5/1996    Last Visited: 3/29/2009  

  "It was a big leap for us," says Ronald Kely, president of RHK Capital, which purchased 803 Bramalea apartments and townhouses for $47.7-million, boosting its apartment portfolio to about 900 suites.

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  Business & Economy Briefs - [Cached Version]
  Published on: 8/7/2005    Last Visited: 8/21/2005  

  Father Kelly off Roman Corporation board
  
  Convicted Canadian child molester Ronald Kelly, a former Catholic priest who is alleged to have skimmed millions from a union pension fund and was found by a Bahamian civil court to have committed what amounts to money laundering here but who has nevertheless been permitted by the Panamanian government to live on a large estate on the road to El Valle, sits on one less corporate board of directors.In the wake of renewed scandals about Kelly that have been the stuff of headlines in Toronto newspapers the Roman Corporation, a Toronto-based company in the cardboard packaging business, has accepted Kelly's resignation from its board.

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  Full Disclosure :: the UFCW Canada Pension Plan :: 01 - [Cached Version]
  Published on: 8/30/2003    Last Visited: 1/20/2008  

  Since 1992 CCWIPP has helped a Toronto area entrepreneur named Ronald H. Kelly finance the purchase of numerous hotels, resorts, office buildings, shopping malls and even a fish processing plant.Kelly's enterprises stretch across Canada and as far away as Jamaica and the Bahamas.
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  Investments in ventures related to Ron Kelly have more than quadrupled (from $55,105,000 in 1995 to $259,327,000 in 2001).
  ...
  connected with Ronald H. Kelly
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  Sins of the Father will introduce you to Ron Kelly, a guy who has benefited in enormous ways from CCWIPP investments.Kelly is a former Catholic priest with a murky past who became a real estate tycoon, thanks in large measure to CCWIPP.

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  Full Disclosure :: the UFCW Canada Pension Plan :: 02... - [Cached Version]
  Published on: 11/1/2003    Last Visited: 1/20/2008  

  CCWIPP first became involved with the two hotels, the British Colonial Hilton and the South Ocean Bay Resort in 1997 when Propco 39 put up $18 million to finance the purchase of the British Colonial Hotel by RHK Holdings - the company operated by ex-Catholic priest Ron Kelly.
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  This table (Analysis of Investments related to Ronald Kelly, 1995 - 2001) shows the amounts and the investment corporations that were used to move the funds to RHK.
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  It was headed by Ronald Kelly, a man whose enterprises would become CCWIPP's major borrowers.
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  The evidence establishes that Kelloryn is a single-purpose corporation, incorporated to purchase the assets of the hotel, The Company was initially incorporated on August 17, 1992, with Ronald Kelly as its sole director.On that same date Ronald Kelly was appointed president, chief executive officer, secretary and, treasurer of the company.Kelloryn has issued one hundred thousand common shares, thirty thousand of which are held by Ronald Kelly, either directly or through a holding company.
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  A shareholders agreement of same date was entered into between Ronald Kelly, Propco 14 and Kelloryn the terms of which were not placed before me, on May 12, 1993, Propco 16 advanced to the company a loan in the amount-of eight million dollars.
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  A shareholder's agreement of same date, which by its terms supersedes the previous shareholder's agreement of October 7, 1292, was at that time entered into between Ronald Kelly, Kelloryn, Propco 14 and Propco 16.
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  On November 24, 1992, Mr. Ahee was also elected as a director of the company, along with five others - Edward McConnell, Clifford Evans, Howard Preston, Ronald Kelly and Hubert Kelly.
  ...
  Mr. Ronald Kelly testified that Mr. McConnell was a former business partner of his, that Mr. Preston and Mr. Evans (the latter having been the previous Canadian Director of the International) were appointed to the Board of Directors by Propco's 14 and 16, and that Mr. Hubert Kelly was his brother and partner.
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  At the center of the web are Cliff Evans and Ronald Kelly - CCWIPP's biggest investment partner.
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  Kelloryn Holdings was only one of Ron Kelly's businesses.In the early 1990's he also set up RHK Holdings (RHK Capital as of 1999), a company that was to become CCWIPP's biggest investment "partner".By our last estimate, in excess of $200 million of CCWIPP funds are sitting in investments that are either directly related to Kelly and his businesses or in businesses that at one time belonged to Kelly and have since been taken over by CCWIPP's Propco investment corporations.
  
  The CCWIPP Trustees' ongoing association with Kelly is bewildering considering the returns realized on their investments in his enterprises and in light of his scandalous past.In the entire cast of characters associated with CCWIPP none is more loathsome than the former Father Kelly.
  
  In 1979, when Cliff Evans was giving birth to CCWIPP, Father Kelly was copping to ten counts of sexual assault on young boys.
  ...
  Although Father Kelly was not one of the Christian Brothers at Mt. Cashel, his predatory acts in the small Newfoundland village where he was a parish priest in the 1970's earned him an entire chapter- Fatherly Treatment - in Harris's book).Here's an excerpt that will provide insight into the guy that the CCWIPP Trustees warmed up to.
  
  After talking to the first complainant, who had been fourteen when the priest sexually assaulted him, the RCMP investigators also realized that in all probability one of Father Kelly's favourite community pursuits was young boys.Sitting alone with these boys in their squad car, LeBreton and Urquhart listened in disbelief as a parade of Father Kelly's male victims described their sexual encounters with the often drunken priest.
  
  One sixteen-year-old described how Father Kelly had called his house at 4 a.m. in the fall of 1978 summoning him to the rectory.When he arrived, Kelly who had already been drinking gave his young guest two glasses of rum before taking him upstairs, ostensibly to watch television.Dragging the boy to the bed, the priest tried to put his hand into his reluctant companion's pants.Unsuccessful, Kelly then groped at the boy's privates through his jeans, exclaiming rather quixotically, "I do not love that, but I love your heart."
  
  Another boy told police about an incident that had taken place during De Grau's annual Garden Party in August 1978.The boy was sent home by his parents for fighting.A little while later, Father Kelly showed up and got into bed with him.Almost immediately, the priest tried to force his hand into the boy's pants.Kelly's own pants were undone and he thrust his exposed penis near the face of his prone companion.The boy pretended to be asleep, and half an hour later Father Kelly got up and left.When the boy later told a friend what had happened, he was advised not to repeat the story to anyone, "because a Priest is a high man" and no one would believe him.
  
  A fifteen-year-old who had been with Father Kelly on at least three separate occasions told police that he and the priest had performed mutual fellatio in the rectory, after which the boy was given five dollars.On one of these occasions, Father Kelly showed no signs of having been drinking.
  
  Perhaps the strangest case involved a young boy who had been sexually assaulted by Father Kelly on a number of occasions with the inadvertent blessing of his mother.After showing up drunk at the boy's home one night, Father Kelly was put to bed by the lady of the house.The priest then asked that her thirteen-year-old son be sent to sleep with him.His hostess obliged, and no sooner had the boy got into bed with the priest than Kelly began fondling his genitals.Kelly told the boy how much he loved him and how much money he had in the bank and that it was the anniversary of his entering the priesthood - all the while continuing his unwelcome stroking.
  
  On another occasion, the same boy was awakened at three or four o'clock in the morning by muffled conversation between his family and Father Kelly.The priest presently appeared in the bedroom, and although the boy's mother tried to convince him to sleep in another room, he climbed into the lower bunkbed with the thirteen-year-old and immediately began fondling the boy after his hostess left.Father Kelly also asked his companion's brother, who was sleeping in the upper bunkbed, to join them; he then lay between the two boys fondling their privates and talking to them.On his way out of the house, he gave one of the boys ten dollars.
  
  A few months later, the same two boys watched in growing apprehension as Father Kelly and their parents played cards late into the night.The priest drank steadily from a bottle of Bacardi rum.When their mother sent them to bed at 4:30 A.M., the boys pushed their bed up against the door so the priest couldn't get into their room.But their sleep was soon disturbed by someone banging on the bedroom door.The frightened boys then heard their mother's voice telling them to let the priest in.
  
  After Kelly had gotten under the covers with them, one of the boys got up and, putting on his jeans, told the priest he had to use the washroom.When he returned, he left his Jeans on and purposely lay on top of the covers because Father Kelly was under the blankets, wide awake and waiting for him.Despite his precautions, the young boy soon felt the priest groping at his privates and telling him, "I don't care what's below, it's what's in your heart that counts."
  ...
  With the intervention of the church and a sympathetic judicial system, Kelly got off light.He received a suspended sentence and a trip to a treatment center for wayward priests outside of Toronto.
  
  Eventually he was sprung into a parish in suburban Mississauga.By 1984 he was acting rector of historic St. Michael's Cathedral and was part of the welcoming committee for the papal visit to Toronto.By 1990, he was Vice-Chancellor of Temporal Affairs in the Archdiocese of Toronto and a key aide to Cardinal G. Emmett Carter.That year his name was raised at the Hughes Inquiry, a Royal Commission into sexual abuse at the Mount Cashel Orphanage.Kelly almost immediately left the church and never looked back.In 1985 he obtained a pardon which cleared his criminal record.Within a few years he would become a real estate tycoon, thanks mainly to the Canadian Commercial Workers Industry Pension Plan.
  
  The following articles, which appeared in the Toronto Sun in 1997 describe in some detail, his rise from disgraced priest to real estate mogul and the people who helped him do it.

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