PING!
Posted on 01/31/2006 7:49:12 AM PST by GMMAC
Charges laid in DND computer billing case
Ex- bureaucrat, two businessmen charged in $100M scam
Glen McGregor
The Ottawa Citizen
Tuesday, January 31, 2006
A former Department of National Defence bureaucrat and two Ottawa area businessmen were charged yesterday after a lengthy investigation into what the RCMP alleges was a complex billing scheme that cost the federal government more than $100 million.
Paul Champagne, a former DND contracts manager, was charged with seven counts, including fraud, breach of trust by a public officer and money laundering. The RCMP accuse him of obtaining more than $105 million from the government under false pretences.
Peter Mellon is charged with 10 counts, including fraud, laundering proceeds of crime and uttering a forged document.
Ignatius (Cholo) Manso is charged with seven counts, including fraud.
Mr. Manso and Mr. Mellon are from the Ottawa area and are described by an RCMP spokeswoman as third-party vendors.
The criminal charges come after a 21/2-year probe by the RCMP's commercial crime unit into the computer maintenance contracts between DND and Hewlett-Packard.
The RCMP was called in by DND in 2003 to investigate irregularities involving billing procedures, unauthorized purchases and inflated equipment costs.
The RCMP investigation uncovered what the force said was a "strong indication of a multimillion-dollar fraud, breach of trust and proceeds of crime offences by Mr. Champagne and several third-party vendors" spanning a 10-year period.
"It was a very complex and convoluted scheme," said RCMP spokeswoman Cpl. Monique Beauchamp. "It would involve direct billing and third-party billing through DND and H-P."
She declined to give further details, citing the upcoming court case and an ongoing investigation.
Mr. Champagne was fired by DND in 2003 over alleged billing irregularities involving supplier Compaq Canada, which was later acquired by Hewlett-Packard.
The company repaid the government $145 million and launched a $107-million lawsuit against Mr. Champagne, accusing him of theft and fraud. None of the allegations have been proved in court. The civil action is still before the courts, the RCMP said.
At the time, Mr. Champagne's neighbours in the Ottawa suburb of Dunrobin marvelled at the former public servant's enormous mansion, which featured an indoor pool, gym, tennis and basketball courts and a four-car garage.
He was also reported to have a home in Florida and a $2.1-million beachfront home on the Caribbean island of Providenciales, in the Turks and Caicos.
None of the men charged could be reached for comment last night. Sally Burks, the last known lawyer for Mr. Champagne, could not be reached either.
Mr. Champagne voluntarily appeared at RCMP offices to be arrested last week and was formally charged yesterday, said Cpl. Beauchamp.
All three men were released on promises to appear. Mr. Champagne will appear in court on the charges on March 30, while the other two appear March 22.
In a press release issued last evening, the lead RCMP investigator in the case, Denis Desnoyers, is quoted as saying that "it is unfortunate that reputations of legitimate companies were affected as a result of the criminal activities."
But the RCMP did not say with which companies Mr. Mellon or Mr. Manso were involved.
Cpl. Beauchamp said Mr. Manso is a former DND officer and a businessman who met Mr. Champagne through the department. She described Mr. Mellon as a "long-time acquaintance" of Mr. Champagne's.
The investigation is continuing, Cpl. Beauchamp said.
© The Ottawa Citizen 2006
PING!
Well, sure. But it's CANADIAN dollars, so not such a big deal, really.
Liberals?
Let the cleanup begin!
1 Canadian dollar = 0.871004 U.S. dollars
Time for a trip to the U.S.!
If I wasn't married, I couldn't even spend that much money.
Finally!
Can't wait for the FREE press and FREE media to make hay while the sun shines in Canada.
You know it! I haven't been down to the States in years, I wouldn't mind spending a couple weeks amongst some sane people. I'll pick a red state, I'll consider it not only a holiday, but a holiday away from leftist wierdos.
Lots of desert sun and fishing too.
Tons of Canucks there from the prairie provinces.
Good Golfing too, no?
And free buses to Laughlin Nevada to the casinos.
And I believe in February the biggest garage sale in the world is going on just to the south.
Thousands of people park out in the desert and travel from there to the rock and jewelry shows and flea markets in Phoenix and LV and Tucson.
http://rentalo.com/80205/desertparadise.html
Also,
http://www.lakehavasuvacationrentalsandhomes.com/Nav.aspx/Page=/ListNow/Default.aspx
This country just may be in for the BIGGEST CLEAN UP it has ever experienced. I expect that it could get so BIG that this country will reject a Liberal government for the next 100 years. I doubt it will take much digging either. One will be without any doubt why the Liberals have fought like Wounded She Cats to "stay" in power!!
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