Peter Nygard argues for release from jail amid COVID-19 fears during 2-day bail hearing

Two former employees of Nygardcompanies told a Winnipeg court on Tuesday they're willing to put up hundreds of thousands of dollars as sureties for Peter Nygard, if the former fashion mogul is released on bail.

Greg Fenske, a former Nygard top executive, and Steve Mager, former director of construction for Nygard International, said they'd check in on Nygard daily and track comings and goings by motion-activated cameras, if the 79-year-old is released from custody pending an extradition hearing.

WATCH | Peter Nygard argues for release from jail amid COVID-19 fears:

Peter Nygard argues for release from jail amid COVID-19 fears

4 years ago

Duration 1:57

Two former employees of Nygard companies told a Winnipeg court on Tuesday they're willing to put up hundreds of thousands of dollars as sureties for Peter Nygard, if the former fashion mogul is released on bail.

"Before you this morning is a 79 year old man [a] frail man, almost 80 years old," said Jay Prober, one of Nygard's defence lawyers, who addressed the Manitoba Court of Queen's Benchvia phone conference Tuesday morning.

"We will be arguing that keeping him in jail at these times of theCOVID pandemic isnothing short of a death sentence and amounts to cruel and unusual punishment."

Tuesday was the first day of a two-day bail hearing for Nygard, who was arrested in Winnipeg on Dec. 14, 2020, andremains in custodyawaiting extradition to the U.S. for allegations he sexually assaulted dozens of women and girls over a 25-year period.

Nygard appeared in court via video link from Headingley Correctional Centre, taking notes during proceedings. Prober told court the defence has a "rock-solid" bail plan, should his clientbe released.

Nygard could live in the same million-dollar home in Winnipeg's Royalwood neighbourhood where he lived for three months before his arrest, court heard. The house is owned by a numbered company Fenske formed last year to effect its purchase.

Fenske,who lost his job when several Nygard companies went into receivership in March 2020, said he wouldcheck in on Nygarddaily and would be alerted if anyone arrives at or leaves the property bymotion-activated cameras.

Fenske now acts a consultant to Nygard onreceivership and pays himself $2,000 per week through his own numbered company.Hehas offered to put up $900,000 as part of his role as Nygard's surety to secure his release.

In court Tuesday, he admitted to deleting more than a thousand company documents and emails after a subpoena was issued by a U.S. grand juryfor company documents.

But Fenske said he didn't understand the court order applied to the emails he deleted, and knew they could later be recovered.

"I believe in Mr. Nygard's innocence," he said. "I believe that for a number of months, we were working towards a process that would see us be able to reacquire some of the assets of the company and formulate a business."

Crown questions suitability of sureties

The bail hearing was originally scheduled for Jan.6, but was moved to Jan.19-20 after the lawyer forCanada's attorney general, Scott Farlinger, told court he needed more time to co-ordinate with his American counterparts and review material submitted by Nygard's defence, which Farlinger said came late.

The Crown attorneytold court he plans to oppose Nygard's release on all grounds, and raised concerns about the defenceplans for Nygard's release and the suitability of Fenske and Mageras sureties.

Mager, aformer Hells Angels associate,said he would be willing to put up the $300,000equity in his two homes to free the fashion designer.

WATCH | Former Hells Angels associate among Peter Nygard's character references:

Former Hells Angels associate and cocaine dealer among Peter Nygard's character references

4 years ago

Duration 2:03

A convicted drug dealer and former gang member is willing to put up $300,000 surety in order to help secure a release on bail for fashion mogul Peter Nygard.

Mager told court he met Nygard at a poker tournament years ago, and said in an affidavit Nygard gave him a "second chance" despite his criminal record. Mager earned $130,000 a year as the director of construction for Nygard International before the company went into receivership.

On Tuesday, court heard that if Nygard violated any orders on his bail, Mager could lose his house.

Health concerns in jail: Nygard

Farlinger suggested the house where Nygard would live was ultimately paid for by Nygard himself, through a company called Edson's.

Fenske told court multiple times he doesn't know who owns Edson's, and saidthat if Nygard is released, he wouldn't have access to personal funds.

Nygard was indicted by a U.S. grand jury last year.In the indictment, authorities allegedNygard frequently targeted women and minor-aged girls who came from disadvantaged economic backgrounds and/or who had a history of abuse.

The indictment said he controlled his victims through threats, false promises of modelling opportunities and other career advancement, financial support and by other coercive means.

In an affidavit to support his bail application,Nygard saidhis health has deteriorated since his arrest and that he fears he will get COVID-19 in jail and die.

He said the food he's given in jail is mostly sugarand "whitecarbs,"whichNygardsaid he quit eating 10 years ago. He said he became violently ill after having his first meal in custody.

A spokesperson for the Department of Justice Canada said U.S. authorities have untilFeb.12to make a formal request for Nygard's extradition. ThenCanada will have 30 days until March 15 to decide whether or notto issue an Authority to Proceed.

Nygard has always maintained his innocence and has accused the women of lying as part of a conspiracy to tarnish his reputation.

Court of Queen's Bench Justice Shawn Greenberg is hearing the bail proceedings.