Man arrested in superhospital fraud case freed on bail

Jeremy Morris, one of thefive men soughtin connection with the McGill University Health Centre (MUHC) superhospital fraud case, has been released on bail, following his arrest byQuebec anti-corruption investigatorsMonday.

Morris will be allowed to return to his home in the Bahamas, as part of his bail conditions.

Morrisis one of the principal holders of Bahamas-based Sierra Asset Management,a company that's alleged to have been a go-between for illegal transactions involving fixing the bid for the superhospital contract.

Executives with SNC-Lavalinthe company contracted by the MUHCto build the new superhospital allegedly paid $22.5 million to Sierra Asset Managementfor a gas contract in Algeriathat was never developed.

Policesaid they believethe money was instead paid to bureaucrats as a bribe to fix the superhospital contract bid.

According to the warrant, policebelieve Morris wasthe middle manin that process. The allegations have not been proven in court.

Police sayformer MUHC head Arthur Porter was one ofthe alleged beneficiaries of the transaction.

Porter has deniedthe allegations.

Morris met with investigators on Monday upon his arrival at Montreal's Pierre Elliott Tudeau international airport.

He faces charges of fraud, conspiracy to commit fraud, fraud toward the government andlaundering proceeds of crime.