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Former top Liberal party man in Quebec charged with fraud, influence-peddling

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MONTREAL - The RCMP has charged a former top Liberal organizer in Quebec with fraud in connection with the sponsorship scandal.

Benoit Corbeil was arrested Friday morning on charges of influence peddling, fraud and conspiracy against the Liberals and the federal government between 1997 and 2000.

Corbeil, the director of the federal Liberals' Quebec wing from 1999 to 2001, is accused of conspiring to defraud the party of $100,000 during his tenure by authorizing payment of false invoices.

He was to appear in court Friday afternoon.

Corbeil admitted during the sponsorship inquiry he distributed cash-stuffed envelopes to party volunteers in advance of the 2000 election, but he said the amount was limited to $50,000.

Former ad man Jean Brault told the inquiry he worked with party officials, including Corbeil, to divert $1.1 million in cash to the party in exchange for sponsorship contracts.

RCMP Cpl. Luc Bessette said Friday that investigators acted on a tip that Corbeil received a large sum of money in return for favours related to a real estate transaction involving federal land.

The RCMP says Corbeil received the money from a now-deceased quarry owner after the Liberal organizer claimed he could influence the government.

"It is very important to note that the RCMP is continuing its investigation into the anomalies surrounding the sponsorship program," Bessette said.

"Other charges may follow."

Justice John Gomery's inquiry into the sponsorship affair found the federal program sent $150 million to Liberal-friendly ad agencies and other middlemen during the Liberal reign in Ottawa.

http://start.shaw.ca/start/enCA/News/NationalNewsArticle.htm?src=n041829A.xml
 
Former Liberal organizer gets 15-month jail term
$20,000 fine, $117,000 restitution

http://www.cbc.ca/canada/montreal/story/2009/12/04/quebec-benoit-corbeil-federal-liberal-corbeil.html


A former high-ranking Liberal Party official has been sentenced to 15 months in jail for his role in producing fake invoices while working for the federal party.
Benoit Corbeil, a former Liberal Party director, was also fined $20,000 and ordered to repay $117,000 he took from the party.
Corbeil had pleaded guilty in June to fraud and influence peddling, in a case unrelated to the federal sponsorship scandal.

He admitted accepting a $50,000 kickback and producing $117,000 in fake invoices while he was working with the federal party's Quebec wing in the late 1990s.
Corbeil confessed that he wielded his influence on behalf of a businessman who wanted to buy a tract of federally owned land in Saint-Jean-sur-Richelieu, southwest of Montreal.

The charges arose from a police investigation launched in tandem with the RCMP probe into the sponsorship scandal.
In his last court appearance, Corbeil pleaded with the judge to let him get on with his life instead of sending him to jail.

Corbeil's lawyer argued he never pocketed the kickback money because it was cycled back to the Liberal Party. The party has said it never saw the money.
 
Liberals; the gift that keeps on taking:

http://www.theglobeandmail.com/news/politics/fake-invoices-paid-for-gaglianos-personal-expenses-rcmp/article1393400/

Fake invoices paid for Gagliano's 'personal expenses': RCMP

Former public works minister Alfonso Gagliano testifies before the Gomery commission into the federal sponsorship scandal in Montreal on May 31, 2005. REUTERS
Warrant alleges $117,000 fraud was planned by former Liberal bagman Giuseppe Morselli

Ottawa — From Wednesday's Globe and Mail
Published on Tuesday, Dec. 08, 2009 7:21PM EST

Last updated on Wednesday, Dec. 09, 2009 9:08AM EST

The reputation of the Liberal Party's Quebec wing, already damaged by past allegations of financial wrongdoing, has been further wounded by new information about a fake invoice scheme that was used to pay for former minister Alfonso Gagliano's “personal expenses” during trips abroad, according to RCMP allegations.

In a newly released wiretap warrant, the Mounties alleged that a $117,000 fraud was planned by former Liberal bagman Giuseppe Morselli, who used the money during trips with Mr. Gagliano in Italy and Florida.

Mr. Gagliano was the Liberal Quebec lieutenant at the time the scheme operated in 1999 and 2000. There is no evidence that he was aware of the source of the money.

The RCMP learned of the fraud two years ago from informant Alain Renaud, a former Liberal lobbyist who was involved in the transactions. His information led the RCMP to lay fraud charges last year against former Liberal official Benoît Corbeil, former director-general of the Liberal Party's Quebec wing. He pleaded guilty and was sentenced last week to 15 months in jail and a full reimbursement.

Court documents show that Mr. Renaud provided more information on the scheme to the RCMP during videotaped interviews, alleging it was set up by Mr. Morselli, a long-time political supporter of Mr. Gagliano.

According to court documents, the system worked as follows:

Art Tellier, a company owned by Mr. Renaud's brother, sent six fake invoices to the Liberal Party of Canada (Quebec);

Mr. Corbeil approved the payment and signed off on cheques to Art Tellier;

Mr. Morselli then laid his hands on the money by sending fake invoices to Art Tellier.

According to information in the 2007 warrant application, Mr. Renaud told the Mounties that the scheme was hatched at a meeting with Mr. Corbeil and Mr. Morselli.

“The conspiracy was undertaken at the request of Giuseppe Morselli, who told Renaud and Corbeil that he took care of minister Alfonso Gagliano's affairs,” the warrant application said. “The [Liberal Party of Canada (Quebec)] money was to be used to pay for Gagliano's personal expenses during one trip to Florida and one trip to Italy.”

Mr. Renaud received immunity from prosecution for his collaboration with police, as well as payments of at least $80,000 for his role in the conviction of Mr. Corbeil.

His allegations regarding Mr. Morselli and Mr. Gagliano are unproven, and there is no evidence that Mr. Gagliano was aware of the transactions.

In addition, a definitive conclusion on the use of the money is hard to come by because Mr. Morselli died in 2006. (At his sentencing hearing, Mr. Corbeil said the money was used by Mr. Morselli for unauthorized partisan spending.)

The Mounties interviewed Mr. Gagliano as part of their investigation into the sponsorship scandal a few months ago, but sources said he is not a suspect in the ongoing probe. Mr. Gagliano's lawyer said this week that Mr. Gagliano would not comment on this story.

Mr. Gagliano was minister of public works from 1997 to 2002.

The Gomery inquiry into the sponsorship scandal heard revelations in 2005 that Mr. Morselli received cash payments in a Montreal restaurant from Jean Brault, the president of Groupaction Marketing and Mr. Renaud's former employer.

At the time, Mr. Morselli had a business card that listed him as the vice-president of the Quebec wing's finance committee. Witnesses at the inquiry said Mr. Morselli derived his authority from his close relation with Mr. Gagliano.

In his final report, commissioner John Gomery concluded that Mr. Gagliano “tolerat[ed] the improper methods employed to finance the activities” of the Liberal Party in Quebec. Mr. Gagliano challenged the finding of blame, but lost in federal court.
 
Wow, and more details to come:

http://www.theglobeandmail.com/news/politics/inside-the-sponsorship-scandal-how-the-mounties-got-their-man/article1521009/

Inside the sponsorship scandal: How the Mounties
got their man


Part 1: Betrayal and Blind Luck — How Benoît Corbeil became the only Liberal brought to justice in one of the biggest scandals in Canadian history
Daniel Leblanc

From Friday's Globe and Mail Published on Friday, Apr. 02, 2010 4:00AM EDT Last updated on Friday, Apr. 02, 2010 11:57AM EDT

Pulling up in front of his friend’s condo in east-end Montreal, Alain Renaud hopped out of his 2003 Ford Windstar with dinner in hand: a grocery bag containing linguini, scallops, butter and parmesan. It was a festive occasion, after all. Benoît Corbeil, his “petit frère,” was turning 44 the next day.

The two men dedicated their evening to cooking and banter. They talked about their daily lives – kids, buying furniture at The Brick, how bad the traffic jams were. And thanks to Mr. Renaud, they reminisced about the old days in Liberal Party politics.
But after a while, the birthday boy began to complain: “Geez, Alain, you’re getting annoying.”

He was tired of digging up the past, not that the present was much fun for Mr. Corbeil in the summer of 2007. For weeks, investigators had been calling on his friends, family and neighbours to pass around documents and ask pointed questions. He told Mr. Renaud he didn’t know what was going on but was afraid the police had someone spying on him, “someone who is damn well out to get me.”

He was right – the Mounties were after him. It would take more than two years, but last December, the former director-general of the Quebec wing of the federal Liberal Party was sentenced on charges of fraud and influence peddling.

The case against him was the work of Operation Carnegie, the special RCMP unit set up to investigate one of the great scandals of Canadian history: the squandering of $100-million in federal sponsorship money. This sordid affair proved to be a death sentence for the “natural governing party;” it eradicated the Liberals’ power base in Quebec, tarnished their image nationally and, just over four years ago, ushered in the Conservatives led by Prime Minister Stephen Harper.

Benoît Corbeil is the only Liberal official ever brought to justice by Operation Carnegie, and because he pleaded guilty, avoiding the need for a trial, there has been no detailed account of how he was caught. But now, after months of research involving thousands of pages of exclusive documents and interviews with confidential sources, as well as Mr. Corbeil himself, The Globe and Mail has pieced together the climactic episode in the most important political-crime story of a generation.

Starting today, a special three-part series will chronicle the combination of blind luck, betrayal and bold police work that helped the Mounties get their man.

And the story isn’t over: Not only does the RCMP even now cling to the hope that other offenders will be punished, next month Mr. Corbeil will be back in court. Although given 15 months in jail and fined $137,000, he remains free pending his appeal – despite the guilty plea, he feels the price he has to pay is too high.

The trouble with corruption

The scandal is rooted in federalism’s close call with the 1995 referendum on Quebec sovereignty. In a bid to raise Ottawa’s profile in the province, the government of Jean Chrétien quietly decided to spend $50-million a year on a massive campaign of public advertising.

By early 2002, however, with the clock winding down on Mr. Chrétien’s term in office, it was clear that much of the money had disappeared, or been wasted by advertising firms that had reaped millions in profit for doing shoddy work – or no work at all. The launch of an RCMP investigation into the scandal in May, 2002, further reinforced the sense that the program had gone off the rails.

Within two years, the Mounties had laid fraud charges against prominent admen Paul Coffin and Jean Brault, as well as Chuck Guité, the bureaucrat who managed the sponsorship program at Public Works and Government Services Canada. The quick results showed the Mounties were able to scour invoices, contracts and time sheets, and prove that taxpayers were defrauded.

But in 2005, the public inquiry called by Mr. Chrétien’s successor, Paul Martin, blew open the inner workings of the Liberal Party in Quebec. Commissioner John Gomery heard enough stories of cash-filled envelopes, fake jobs and political interference that he concluded there must have been a “kickback scheme” in the senior ranks of the party. But he could do no more than chastise people because those who testified before him had been promised immunity.

The RCMP found itself under increasing pressure. What could it do about the apparent corruption uncovered by the inquiry? There was particular outrage, especially in Quebec, at 77-year-old Liberal insider Jacques Corriveau, who’d failed to explain how his design firm landed $10-million worth of subcontracts from big players in the sponsorship program.

Senior Mounties even heard about it at home. “During the Christmas holidays,” an officer once recounted, “everyone was asking me when we would get the old coot.”
According to police, cases that involve dishonest government officials are among the toughest to crack. Either you must catch the transaction on the spot or get someone to confess.

As one officer said: “Homicides are easier to solve than corruption. In corruption, all we have is A and B talking to one another. They usually don’t write a contract or record themselves.”

Secrecy required

Operation Carnegie was run out of the RCMP headquarters in Montreal’s Westmount district by a team within the force’s commercial crimes section. Security was so tight that team members required special passes to reach their offices in a restricted area; colleagues were kept in the dark.

The investigation was led until late 2006 by Inspector Dominique Landry, who mainly oversaw the pursuit of the ad companies. Her successor, Superintendent Stéphane Bonin, was a veteran of cases involving bureaucrats and politicians in Ottawa and expected to speed up the corruption investigation. He brought in experts from units outside Montreal and streamlined the system, allowing individual investigators more leeway – a welcome strategy, given the staggering amount of paperwork and red tape involved.

Separate units were responsible for fraud, corruption and retrieving any proceeds from the crimes they might solve. The force saw the situation like a pyramid, with large advertising firms raking in millions of dollars at the bottom, Liberals organizers and bagmen in the middle and a small number of high-ranking government operatives at the top. The plan was to start at the bottom and move up by persuading the guilty to provide evidence on those above them.

Even before the Gomery revelations, the Mounties had reason to suspect that sponsorship money was finding its way into political pockets. In 1997, they helped to convict a Liberal fundraiser who tried to squeeze donations out of companies seeking federal grants.

Another clear sign came during Operation Accord, an investigation of a kickback scheme at the Immigration and Refugee Board. Documents show that the Mounties were allowed to tap the phone of Giuseppe (Joe) Morselli, a senior Liberal fundraiser close to Alfonso Gagliano, the cabinet minister whose department ran the sponsorship campaign.
Mr. Morselli didn’t say much about the IRB, but the Mounties heard Mr. Brault, head of Montreal ad firm Groupaction Marketing Inc., call to see whether anything could be done to extend a contract his company had with the government. Mr. Morselli said he could talk to his contacts and make it happen – in return for $100,000.

Then, when Mr. Guité retired in 1999, he was replaced by Mr. Gagliano’s chief of staff, Pierre Tremblay, who left his political job and entered the bureaucracy to become head of the sponsorship program. By the time the auditor-general uncovered just how much money had been misspent, five years later, Paul Martin had become prime minister and Mr. Tremblay had moved to the Canadian Food Inspection Agency.

He was fired by Mr. Martin and, suffering from diabetes and a drinking problem, he died later that year – as did Mr. Morselli, who had heart problems, in 2006.
They both took any secrets they had with them to the grave, but by that point the Mounties had someone squarely in their sights.

Tip of the iceberg

The nation was weeks away from going to the polls when, one day in December, 2005, Richard Mimeau took a break from his duties as a top Liberal organizer in Montreal and walked up to the RCMP building in Westmount.

Over two and a half hours, the Paul Martin loyalist spoke to two members of the anti-corruption unit about his time in politics, dishing out everything he knew about everyone involved in the sponsorship scandal. He took great care to convey the impression that, before Mr. Martin came to power, the federal party’s Quebec operation was infested with organizers of ill repute, people who lived above their means and were involved in shady fundraising.

He had no smoking guns to offer. Still, midway through, Mr. Mimeau suggested the RCMP visit a former ministerial assistant and ask about the man who had been the party’s director-general at the time.

“There is Michel Binette, who maybe could, ah, talk to you about a visit that Benoît received,” Mr. Mimeau said. “Michel might have more on someone who had dealings with Benoît … ah, who would have asked a service from Benoît.”

The Benoît in question was Mr. Corbeil.

Christmas came and went, and on Jan. 23, the Liberals, burdened by the sponsorship scandal, lost power to a Conservative Party promising to clean up Ottawa.
Three days later, two RCMP officers – Corporal Hotgarth Jean and Constable Eric Boulanger – travelled north to see Mr. Binette in the Laurentians, where he had become director-general of the municipality of St-Adolphe-d’Howard. Not knowing exactly what they were looking for, the Mounties did their best to get Mr. Binette talking.
“Our mandate is to shine a light on corruption involving sponsorships,” Cpl. Jean explained, assuring him that “we sincerely think that you can help our investigation. You are not a suspect – you are a witness.”

Mr. Binette, a lawyer and former ministerial aide to Stéphane Dion, laid out what he knew about those in Liberal circles. But the Mounties wanted more. Without referring specifically to the Mimeau anecdote, Constable Boulanger asked whether Mr. Binette had specific stories to tell. “Are there things that bothered you? Let’s call them irregularities or abnormal situations.”

Mr. Binette said he had enough stories to fill a book. He then gave the Mounties just what they were looking for: something he had heard a few years earlier from someone who had been at law school with him.

“He told me, ‘Listen, during the 1997 election, I approached the Liberal Party because there was this land that I wanted to buy, and … Benoît Corbeil asked me to contribute to the party, and he said that, if I contributed to the party, the favour could likely be returned.’ “

Mr. Binette said he asked his friend how big the donation was and whether it had been done by cheque. “He said, ‘No, no, no. I gave a suitcase full of cash in Benoît Corbeil’s office, in Montreal.'“

Claiming to be shocked, he told the Mounties: “Honestly, other than collecting a hundred dollars here or there to pay for pizza or fries or pop and juices for volunteers in campaign offices, but that type of money? In my political experience, I’d never seen that.”
Pressed to name the friend, Mr. Binette hesitated but then blurted out: “The person in question is Luc Ouimet. I don’t know if you knew?”

The Mounties had heard of neither the payment nor Mr. Ouimet, a lawyer and doctor whose family owned a multimillion-dollar quarry and gravel operation in Saint-Jean-sur-Richelieu, just south of Montreal. But they soon found that someone they knew had.
For 18 months, they had been assisted in their inquiries by a paid informant – a well-connected source they called C4590. The day after meeting Mr. Binette, the officers asked C4590 if he could recall such a transaction, and of course he could. It was he who picked up the money.

On Saturday: The Chase Informant C4590 was the key that gave the Mounties what they needed to crack down on the sponsorship transactions – and brought them swooping down on one of his best friends. Daniel Leblanc traces how the RCMP trained C4590 to go undercover, wear a wire and get the goods on kickbacks in the Liberal Party.
 
Part 2:

http://www.theglobeandmail.com/news/politics/sponsorship-tipster-was-like-big-brother-to-prime-player/article1521790/

Sponsorship tipster was like ‘big brother’ to prime player

Part 2: The Chase – In a stroke of luck, informant ‘C4590’ told police that not only was he aware that cash had changed hands, he picked up the money himself
Daniel Leblanc

From Saturday's Globe and Mail Published on Friday, Apr. 02, 2010 11:11PM EDT Last updated on Monday, Apr. 05, 2010 4:19AM EDT

Paid informants are given nasty nicknames – rat, stoolie, snitch – but police would have a hard time fighting corruption without them, especially someone like the plugged-in chatterbox known in RCMP circles as C4590.

During the late 1990s, he was heavily involved in the federal sponsorship program as a lobbyist helping one of the biggest recipients, Groupaction Marketing Inc., land advertising contracts worth tens of millions of dollars. As well, he was very active in the Liberal Party, raising tens of thousands of dollars and, at election time, doing everything from fetching juice for volunteers to driving around the party’s president.

At first, his relationship with the police was relatively informal – he would offer up tips derived from his impressive contact list and his days in politics and advertising. Records show that for doing this, he was paid $2,000 in 2004 and $2,500 in 2005.

“ If Corbeil opens up on the infractions, he could be solicited to collaborate against bigger fish. ”— Staff Sergeant Pierre Thivierge

Then, in early 2006, Operation Carnegie, which had been launched four years earlier to investigate fraud and corruption in the Liberal sponsorship scandal, had a breakthrough. They heard an accusation that Benoît Corbeil, a former director-general of the federal party’s Quebec wing, had agreed to take a large cash payment in return for helping a businessman buy land that had been expropriated, and then not needed, for an airport south of Montreal.

The apparent scheme did not involve the sponsorship program directly, but the investigators hoped that it would lead to bigger things. “If Corbeil opens up on the infractions, he could be solicited to collaborate against bigger fish,” Staff Sergeant Pierre Thivierge, a key officer on the case, noted in his daily log.

So the unit in Montreal made a formal pitch to its superiors in Ottawa to launch Operation Corbet as part of Operation Carnegie and look into Mr. Corbeil.

The case hinged on the collaboration of C4590, who told them that not only was he aware that cash had changed hands, he had picked up the money himself. It was a stroke of luck, but perhaps not all that surprising to anyone who knew that the Mounties’ secret informer was the man Mr. Corbeil considered his “grand frère.”

Zig meets zag

Alain Renaud and Benoît Corbeil first met at the Liberal headquarters in Montreal a few months before the 1995 referendum on Quebec sovereignty. Both had blue-collar backgrounds in the city’s east end and came to be key supporters of prime minister Jean Chrétien in the struggle for dominance being waged with backers of finance minister Paul Martin.

They rose through the party ranks, working so well together that they started referring to each other as brothers. In Liberal circles, some people said that “when Corbeil zigs, Renaud zags.”

But their fortunes suffered mightily amid the fallout from the sponsorship scandal. Mr. Corbeil had run for a seat on Montreal’s city council in 2001, but his reputation was so damaged by his testimony at the Gomery inquiry that he lost his job as director of the University of Quebec at Montreal’s fundraising foundation and was among the 10 leading Liberals formally banished from the party.

He and Mr. Renaud remained close, but, by 2006, his “big brother” was in reality much closer to the Mounties. They were impressed by his encyclopedic knowledge of the sponsorship scandal, his ongoing contacts with key players under investigation and his ability to think on his feet. According to one police document, “C4590 allows us to interpret certain activities in this world, to identify key players in a complex and corrupt chessboard. …”

“ But friendship goes only so far – Mr. Renaud’s real ace in the hole with Mr. Corbeil, according to court documents, was the fact that they had been partners in crime. ”
This time, as well as telling investigators what he knew, C4590 agreed to go undercover and wear a wire to help build the case. In return, he would receive payments that eventually reached $1,000 a week, plus a promised bonus upon conviction. Records show that from 2004 to 2008, the force paid him about $80,000, but senior officials felt that he was in it less for the money than as a way to wreak “vengeance” upon those he felt had cheated him.

“He has mentioned to his handlers that he looks forward to seeing the RCMP investigation reach its goals and to see people like [Groupaction’s] Jean Brault, Benoît Corbeil [and others] arrested,” the RCMP said in a court application for a wiretap. “He claims that those individuals manipulated him and used him to enrich themselves, while he obtained nothing.”

For his efforts, Mr. Renaud was not guaranteed full immunity from prosecution for anything he may have done, but he was assured that the RCMP was aiming higher than him within the party hierarchy. In fact, according to RCMP documents, Staff Sgt. Thivierge and Superintendent Stéphane Bonin, head of the operation, worried that if C4590 did incriminate himself, “could the Crown ignore the promise made by the RCMP and decide to charge him?” Determined “to go after the bigger fish,” they decided to do all they could to protect him.

They also trained him how to be an effective operative – how to use inside information to get his old friend to open up. In particular, he was told to take advantage of the fact that Mr. Corbeil, a father of two, had racked up big legal bills during the Gomery inquiry, lost his job and now was going through a divorce.

Soon, he was helping the Mounties listen in on dozens of phone calls and one-on-one meetings with their suspect. The police had no doubt that he was fully trusted: Once, after a face-to-face at a bar east of Montreal, Mr. Corbeil called to warn his “brother” to be careful going home because there were so many police on the road. Another night, he picked up the tab at a steakhouse for a dinner that C4590 had set up just so the RCMP could listen in. At one point, Mr. Corbeil even offered to help Mr. Renaud get a job at the cleaning firm he had recently joined as a manager.

But friendship goes only so far – Mr. Renaud’s real ace in the hole with Mr. Corbeil, according to court documents, was the fact that they had been partners in crime.
In videotaped interviews, he told the Mounties that in 1999 and 2000, the two of them and long-time Liberal fundraiser Giuseppe (Joe) Morselli had set up a scheme to help Mr. Morselli use party money to cover personal expenses, such as trips to Florida for himself and Alfonso Gagliano, then a member of the Chrétien cabinet.

Accountants working for the Mounties found that $117,000 worth of fraudulent invoices had been submitted to the party by Art Tellier, a print shop owned by Mr. Renaud’s brother, Benoît. Mr. Corbeil approved the payments – including one for the purchase of laptop computers that Art Tellier had never even owned – and the money reached Mr. Morselli via a second set of fraudulent invoices submitted to the print shop.

‘Go get the envelope’

But what really interested the Mounties was the $50,000 that they had been told had gone to the party in exchange for help in purchasing Crown-owned property. If true, it would be a clear case of corruption – a kickback in exchange for political influence.
Mr. Renaud confirmed to the police that “Benoît Corbeil once asked me to meet this man on the south shore [of the St. Lawrence]. He told me, ‘Go get the envelope, count the money, and bring it back to the party.’ ”

And so he drove his Jeep Grand Cherokee about a half-hour south of Montreal to St-Jean-sur-Richelieu and met a man at a steakhouse. Afterward, he said, “I took the money, I went to my car and I counted it.”

He kept the envelope until Mr. Corbeil called to say that Liberal riding associations needed money. Keeping $2,000 or $3,000 “for my troubles,” he gave the rest to Mr. Corbeil.

Now, the RCMP had two solid sources: a former ministerial aide, Michel Binette, who said he had learned about the payment from its source: Luc Ouimet, whose family owned Carrière Bernier, a 125-year-old quarry and gravel operation in Saint-Jean-sur-Richelieu, and Mr. Renaud, who claimed to have been the middleman.

Mr. Renaud, however, said he had been given the cash by someone older. So, on June 29, 2007, two Mounties paid a visit to Luc Ouimet’s father, Réal, the family patriarch.
They promptly hit a wall. According to the RCMP report on the encounter, Mr. Ouimet “stated that political parties do not accept cash donations. Réal Ouimet denied giving cash to anyone, whether at the federal, provincial or municipal level.”

Not amused, the investigators warned Mr. Ouimet that they did not believe him and that “the RCMP now considered the shareholders of Carrière Bernier as suspects.”
The Mounties also learned that Mr. Ouimet was in poor health – he was suffering from advanced intestinal cancer. They decided to turn up the heat on the case.

“ One day, Mr. Corbeil complained to Mr. Renaud, of all people, that the police seemed to know so much about him that his lawyer was certain that they must be working with “un agent source” – an informer. ”

To make Benoît Corbeil nervous, officers began to drop in on his friends – and they pressed C4590 to lure him into admitting guilt.

With his old friend blissfully unaware, Mr. Renaud wore a hidden microphone whenever the two got together, whether it was to cook up a linguini supper for Mr. Corbeil’s birthday or to take a trip together to Quebec City. He kept bringing up the $50,000 kickback, as well as the fake invoices used to siphon more than twice that amount out of Liberal Party coffers.

He was instructed to suggest that an RCMP raid at the home of Liberal insider Jacques Corriveau in July may have unearthed incriminating documents. But he also reassured his friend that the Mounties would get nothing out of him: “Crack? They’ll have to wake up damn early to get me to crack.”

By this point, Mr. Corbeil was a nervous wreck. The police had been following him in unmarked cars, visiting his friends and family (his ex-wife was panicked by her encounter) and even going to his cottage to quiz the neighbours, who started giving him weird looks.
One day he complained to Mr. Renaud, of all people, that the police seemed to know so much about him that his lawyer was certain that they must be working with “un agent source” – an informer.

Yet, through it all, the target of Operation Corbet admitted nothing. He didn’t challenge anything Mr. Renaud said, but neither did he incriminate himself for the benefit of the microphone.

So, on Sept. 5, in a final attempt to “shake up” Mr. Corbeil, the Mounties paid a visit to his friend, Liberal organizer Jacques Hurtubise, and then, four days later, played their wild card.

Corporal Mark David called Mr. Corbeil to say he had a package for him. The two met at a Zeller’s department store, and the package turned out to be a copy of Born Again, the story of Watergate conspirator Charles Colson’s jailhouse redemption. Clearly puzzled, Mr. Corbeil agreed to read the book – but he didn’t have to wait too long to find out why.
Eight days later, at 7:22 in the morning, four Mounties materialized just as he was about to get into his car. Almost two years after being told by Liberal organizer Richard Mimeau to talk to Michel Binette about Benoît Corbeil, they had finally decided to arrest the man.
To avoid scrutiny, Mr. Corbeil accepted the Mounties’ invitation to hop into their Ford minivan. He was read his rights and, en route to the station, allowed to drop off two rented DVDs and to cancel his appointments for the day.

It was after 8 before he reached his lawyer. They spoke more than once that morning, and each time, the message was clear: “Listen to what the police are saying – but don’t talk.”
 
Part 3. Maybe Parliament can convene an inquiry like the one that investigated former Prime Minister Mulroney.... >:D

http://www.theglobeandmail.com/news/politics/under-the-bright-lights-the-mounties-get-their-man/article1522751/

Under the bright lights, the Mounties get their man

Part 3: The Showdown – After two years on Benoit Corbeil’s trail, the RCMP close the sponsorship sting with a dramatic confession, tying a Liberal official to the scandal.
Daniel Leblanc

From Monday's Globe and Mail Published on Monday, Apr. 05, 2010 4:00AM EDT Last updated on Monday, Apr. 05, 2010 7:51AM EDT

The signs were homemade – six large computer printouts bearing the RCMP logo next to a picture of the federal Parliament building. Each sheet was labelled “sponsorship scandal – corruption unit” but had been given a different heading: analysis; police shadowing; investigations; co-ordination; proceeds of crimes; evidence.

It was Sept. 14, 2007, and props were needed to make an impression three days later when a man accused of defrauding the Liberal Party of more than $100,000 and accepting a $50,000 bribe would walk through the Montreal office of the Mounties’ commercial-crimes unit en route to his interrogation.

The goal was to be sure that Benoît Corbeil, former director-general of the federal Liberals’ Quebec wing, knew just how thorough the investigation into the sponsorship scandal had been and how serious the accusations he faced really were.

And the stage was set for Greg Bishop, the big, sympathetic corporal whose abilities are legendary within the force. “He looks like Yogi the Bear,” according to one insider, “but he is a formidable interrogator.”

Cpl. Bishop had persuaded murderers and pedophiles to confess, and now Operation Carnegie wanted him to work his magic on corruption. To do so, the Mounties in Montreal investigating the disappearance of millions in federal advertising money had campaigned to borrow him for a few days from a joint Canada-U.S. border unit in Quebec’s Eastern Townships.

Years of legwork had brought them to a critical point in “an exceptional case.” Now “a superior level of competence is required” to close the trap on the only Liberal Party official they felt they could prove had accepted money in exchange for a political favour.

They got their wish.

Réal Ouimet's interrogation by the RCMP.
‘Call me Greg’

Arrested early on the morning of Sept. 17, almost two years after the force had received a tip that he had taken a kickback in 1997, Mr. Corbeil was placed in cell block C-111B, told to remove his belt and his shoelaces, and asked to wait.

He struggled with the stress of being in jail for the first time – but his nerves would have been even worse had he known who else was in the building that day: Réal Ouimet, a businessman who had given him $50,000 in cash to arrange the sale of government land, and Benoît Renaud, whose printing company Art Tellier had been used to bilk the Liberal Party of $117,000.

Mr. Corbeil most certainly would have been shocked to learn that Mr. Renaud’s brother, Alain, the old friend he affectionately called his “grand frère,” was the mystery figure he felt was “out to get” him. Alain Renaud was, in fact, a paid police informant who had spent months pressing Mr. Corbeil to talk about their unsavoury past while a hidden microphone caught every word they said.

As he waited, Mr. Corbeil was repeatedly offered food, but stuck to coffee, water and Tylenol.

Finally, at 2:35 p.m., seven hours after his arrest, he was taken from his holding cell past all the signs put up for his benefit to the unit’s interview room. The many months of pursuing him, grilling old associates and visiting friends and family just to rattle his cage were over; the Mounties wanted the drama brought to an end.

In a final bid to impress, they presented Cpl. Bishop as “the big boss” on the case, which was not true. However, despite all the secret recording, Mr. Corbeil had not really incriminated himself, so a confession was required. A psychological assessment had been prepared, and “Yogi the Bear” was considered best equipped to get one.

“ What I want to know is whether I have in front of me a truthful man, if I have a man who can take responsibility to correct things that happened in the past, if you did things that were wrong. ”— RCMP Cpl. Greg Bishop

The first step was to get Mr. Corbeil to relax. “I’m not a very formal man, so you can call me Greg,” the Quebec-born anglophone said in his best French.

Then he quickly laid down a few ground rules. “You know, people like you that have never had to deal with police in their lives, they have impressions from television and movies. Often, police officers are depicted in a negative way where there are conversations that become threatening. This won’t happen here.”

He listened as Mr. Corbeil described how his life had been ruined by the sponsorship scandal and his appearance at the Gomery inquiry, after which he had lost his plum job as a fundraiser for the University of Quebec at Montreal and then his marriage. “Honestly, objectively,” he said, “you have a tired man in front of you.”

Cpl. Bishop seized the chance to unleash what he considered a key weapon in his arsenal: Born Again, the book by contrite Watergate conspirator Charles Colson that the Mounties had given Mr. Corbeil in the hope it would inspire him to open up.

He said he saw parallels both between Watergate and the sponsorship scandal and between the former special counsel to Richard Nixon and Mr. Corbeil. Mr. Colson had pleaded guilty to obstruction of justice and redeemed himself after acknowledging his crimes, he said, adding: “What I want to know is whether I have in front of me a truthful man, if I have a man who can take responsibility to correct things that happened in the past, if you did things that were wrong.”

Insisting that he was honest and willing to collaborate, Mr. Corbeil began to lose sight of the advice his lawyer had given him that morning by phone from Quebec City: “Listen to what the police are saying, but don’t talk.”

He launched into a long description of his life in politics, from university to his career in the Liberal Party, explaining the duties of an organizer and the business of putting together fundraisers.

As the clocked ticked, Mr. Corbeil did much of the talking until it was time for a health break and a Starbucks latte. By 5:40, the pair were hungry, and decided to order in barbecued chicken. The conversation continued, breaking only for Mr. Corbeil to call and wish his young daughters good night.

Telling them that he was in a meeting, he hung up, bowed his head and cried.

The ‘bad cop’

At that point, Sergeant Richard Huot entered the room. In contrast to the warm and burly Cpl. Bishop, he came across as tall, sharp and cold. He made no threats, but clearly his role was to lay out the unattractive truth.

Taken aback, Mr. Corbeil went from cheery and chatty to sombre, slumping in his chair.
After recapping Operation Carnegie’s examination of the sponsorship fiasco, Sgt. Huot left, only to return a few seconds later with invoices from Art Tellier, the Benoît Renaud company. They bore Mr. Corbeil’s signature, and one referred to the sale of computers – a possibility the sergeant shot down: “Our investigation confirms beyond any doubt, Mr. Corbeil, that these laptops never went through the hands of Art Tellier and were never sold to the Liberal Party of Canada. There is no doubt in my mind, Mr. Corbeil, that with this evidence, this investigation is over.”

Sgt. Huot left once again, and Cpl. Bishop immediately returned to the subject of Chuck Colson, whom he called the “hero” of Watergate. “I see you as a man who is now, with me, at a crossroads. You have a decision to make,” he told Mr. Corbeil. “Will you continue on the road that brought you here, a road that is full of lies, that is full of crooked turns? Or will you embark on the road of truth, in which you acknowledge your responsibility for what you did?”

Urging him to open up, he insisted that, although the evidence against Mr. Corbeil was bulletproof, the future was still in his hands. After all, he “had not benefited” from the crimes; others had used him.

Even as his suspect vowed to “tell the truth,” the Mountie pressed on, talking about Mr. Corbeil’s love for his kids, his values and his sense of pride, drawing all the while from the profile the RCMP had prepared.

“Of all the people whose name came up during this investigation, you are the only one who gave me hope that if I took the time to talk to you, maybe I could encourage you to do the right thing.”

According to RCMP records, the confession on the false invoices came at 8:38 p.m., more than 13 hours after the arrest and six hours after Cpl. Bishop had entered the interview room.

“ It was fraud, but I didn’t do it with a goal in mind. Things were going so fast, things were so crazy in that party. The invoice came, I was told to pay it, I paid it. ”— Benoît Corbeil

“I thought I was doing the right thing,” Mr. Corbeil said. “Did I do the right thing? No. But, in my heart, I thought I was doing the right thing.”

He subsequently admitted: “It was fraud, but I didn’t do it with a goal in mind. Things were going so fast, things were so crazy in that party. The invoice came, I was told to pay it, I paid it.”

Cpl. Bishop then moved to the next item on the agenda: the $50,000 kickback. He let slip that Réal Ouimet, the man who had hoped that slipping some cash to the Liberals would help him snag some federal property, had visited the RCMP earlier in the day.

It was the right button to push, and the warning from his lawyer went right out the window. Minutes after opening up about the invoices, he was talking all about the kickback.

“That is really deep in my mind, and I’m not sure about the amounts. Maybe inspector Huot will come in with information, I can’t say. But it’s true that I asked Alain Renaud to go and pick up $50,000 in cash,” he said, explaining that he did so because co-conspirator Joe Morselli had connections in Ottawa and told him it was a good way for Mr. Ouimet to get results.

His job done, Cpl. Bishop flicked one last time at the Colson book: “You are a brilliant person, Benoît. Unfortunately, you entered a world where people used you. One day, you will be able to sit down with your girls, when they are able to understand these complex matters. You’ll be able to say, ‘Yes, I did some bad things, but I can show you that, when we do something wrong, you can take responsibility, make amends and continue.’” It was 10:30 p.m. and Mr. Corbeil was exhausted, but relieved as he got ready to go home. On his way out, he stopped, looked at his interrogator and gave Cpl. Bishop a big hug.
“I should have met you earlier in life,” he said.

‘Like in the army’

Almost two months later, on Nov. 10, the Mounties signed an agreement granting Réal Ouimet immunity, as they had for Benoît Renaud of Art Tellier. Then they turned on the cameras as the man from Saint-Jean-sur-Richelieu gave his account of the kickback.
Explaining that he was battling cancer and had at best a 50-50 chance of survival, Mr. Ouimet said that 10 years earlier he had been eager to buy back land that had been expropriated for an expansion of the local airport but then wasn’t needed.
Mr. Ouimet testified that Mr. Corbeil told him that a donation would help. “I don’t know whom he talked to, but there was an attentive ear somewhere,” he added, noting that the payment consisted of 50 thousand-dollar bills.

“In my opinion, these people … it’s like in the army. There is a general and there are soldiers. The soldiers did their job. For whom? The person at the top,” Mr. Ouimet testified.

“ The constant phone calls, the meetings, the non-stop questions – 'big brother' had indeed been watching. ”

Mr. Ouimet lost his money – the land purchase never happened. And he lost his battle with cancer on March 18, 2008. Exactly one month later, the RCMP swooped in to charge Mr. Corbeil with fraud in relation to the fake invoices and with influence peddling in relation to the kickback.

As he read the charges, Mr. Corbeil saw that they implicated Alain Renaud, yet his old friend, his “grand frère,” was still free as a bird. Only later, when he received details of the case against him, did it all fall into place: the constant phone calls, the meetings, the non-stop questions – “big brother” had indeed been watching.

“When I saw that he worked as an undercover agent, to me, it was high treason,” Mr. Corbeil said in a Globe and Mail interview. “It was a shock, as if I were in mourning.”
Still, being duped did not change the evidence, or the fact that he had ignored his lawyer’s advice and confessed, so Mr. Corbeil pleaded guilty last June. He expected that by doing so, coupled with the lack of evidence that he had benefited personally (apart from a $5,000 gift from Mr. Morselli when he and his wife were adopting a child), would pay off at sentencing time.

But in December, Judge Suzanne Coupal of the Quebec Court decided that a message had to be sent. “In these troubled times in which trust in our democratic institutions seems to be shaken,” she ruled, “the courts must denounce and show they reprove actions that go against the fundamental values of our society.”

Mr. Corbeil was fined $20,000 for setting up the kickback. For the fake invoices, he was sentenced to 15 months in jail and ordered to reimburse the party $117,000, the entire amount of the fraud.

After two weeks in jail, he was freed pending his appeal, which is to be heard in May. Mr. Corbeil’s lawyer is expected to argue that prosecutors did not ask the judge to make him an example, so the penalties are excessive.

The road ahead

Looking back on what he has been through, Mr. Corbeil admits that “it’s quite the cross to bear,” but “I’m moving forward.”

It’s hard to say the same of Operation Carnegie. The Mounties hoped that Mr. Corbeil would help them uncover corruption at higher levels, but he says he can do no such thing, that perhaps Alain Renaud – dubbed C4590 – oversold him.

At the same time, he describes as “bizarre” the fact that he is the lone party official charged by those investigating the sponsorship scandal. “I mean, put yourself in my shoes.”

“ And what became of Alain Renaud?”

The Mounties refuse to admit defeat. Insiders say at least one more case has been gathering dust on the Crown prosecutor’s desk, while others remain active, if moving at a glacial speed.

But Operation Carnegie has lost some key figures. Despite his self-professed “attraction for corruption cases,” Sgt. Huot has been transferred halfway around the world to Dubai, and Staff Sergeant Pierre Thivierge, who wanted so badly to catch what he called “bigger fish,” is now at the Canadian embassy in Washington.

And what became of Alain Renaud? Secret agent C4590 has taken on a new role with the RCMP: as a member of its witness-protection program.


Daniel Leblanc is a reporter in the Ottawa bureau of The Globe and Mail, which won the 2004 Michener Award for public-policy journalism because of his investigative work on the sponsorship scandal with colleague Campbell Clark.

 
Another politician who performed at his best  ::) .

How about making an example of him. We'll see won't we. It always seems that they are above the law in so many ways, and I am for having the book thrown at him.

OWDU
 
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