Applebaum targeted as Montreal seeks cash lost to shady dealings

The City of Montreal is taking steps to recover millions of dollars it says it has lost as a result of shady dealings involvingcontractors and former employees.

One of its main targets is former mayor Michael Applebaum, who was found guilty last month on corruption-related charges.

The city providedApplebaum severance pay of $108,204 and a transition allowance of $159,719.

Genevive Dub, a spokesperson for the city, confirmed the cityislooking to reclaim that transition allowance under a recently-modified law.

• Ex-Montreal mayor Michael Applebaum found guilty of corruption
• Deadline approaches for Quebec companies to repay collusion cash

When Applebaum was arrested in 2013 on fraud and conspiracy charges, there was no mechanism allowing the city to withhold that money.

The city is also looking to reclaim moneyagainst parties cited byQuebec Court Judge Louise Provost in her ruling againstApplebaum, includinghis former aideHugo Tremblay.

During the trial, Tremblay testified Applebaum taught him how to solicit cash and arrange illegal fundraising from real estate promoters.

Construction companies also targeted

The city isn't stopping with the Applebaum case. It is also trying to recover millions from two construction companies in Quebec Superior Court.

The city has filed a claim against Construction Irebec for more than $8 million and three individuals for sums it claims were paid to them fraudulently.

It is also seeking money from the Sintra Inc. for $16.4 million for its alleged role in bid rigging on paving contracts.

In addition, the city has begun procedures to reclaim more than $23 million from Catania Construction in the Faubourg Contrecoeur affair,a land transaction in the Montreal's east end.

Catania Construction and six people are currently on trial in connection with that transaction.