Quebec Liberal Party fundraisers allegedly pocketed huge payouts in government real estate deals

Key fundraisers for the Quebec Liberal Party may have pocketed large sums of money through a series of real estate transactions, allegedly splittingthat money with the former head of the provincial Crown corporation charged with managing those buildings,Radio-Canada's investigative programEnqutehas learned.

The months-long probe by Enqutepresentswhat a retired anti-corruption investigator believes could be the biggest case of real estate fraud involving government buildings in Quebec, and perhaps even Canadian, history.

"We're talking about real estate fraud involving government agencies," said Christian Plourde, a retired investigator with Quebec's anti-corruption unit, UPAC, who supervised the investigation until last year.

The investigation dates back to 2007, when Swiss policetracked the suspicious movement of money between European banks, alerting investigators in Quebec.

UPAC has carried out a long and complex investigation since 2011.

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Enqutehas learned the investigation is all but complete, and Crown prosecutors are reviewing the file. No one has been charged.

The allegations

TheSocitimmobilireduQubec(SIQ) since 2013,the Socitqubcoisedes infrastructures managestheQuebec government's office space, except for schools and hospitals and otherbuildings inthe health and education networks.

That adds up to more than onemillion square metres of space: the equivalent of 50 Olympic Stadiums.

From 2003 to 2008, the president and director generalof the SIQ wasMarc-AndrFortier.

Fortier and three men well known in provincial Liberal Party fundraising circles William Bartlett, Franco Fava and Charles Rondeau allegedly split close to $2 million deposited in accounts in Switzerland and the Bahamas.

The money was allegedly derived from three separate deals to extend property leases.

Money wired abroad

Documentsobtained byEnquteshowthe SIQ generally signs leases of 10 years or less.

However, in 2004, the Crown corporation signed a 17-year lease to rentalmost all of the floors of one of the biggest buildings in Place d'Youville, in Quebec City.

Two months later, the private company that manages the building allegedly wired $1.25 million from a bank account in Liechtenstein to an account in Switzerland.

Documents show most of that money was allegedly then sent to four bank accounts in the Bahamas: $450,000 to an account in the name of William Bartlett, $250,000 to Charles Rondeau, $200,000 to Franco Fava and $100,000 to Marc-Andr Fortier.

The whole cycle repeated itself in 2006, when the SIQ signed leases of 20 and 25 years for two other buildings in Quebec City.

This time, the building's management allegedly paid $2.1 millionto a real estate consultant. That money was allegedly then transferred from Montreal to a bank in Belgium and several other Swiss bank accounts.

In the end, $902,000 was allegedly deposited in an account belonging to Bartlett.

Documents show Bartlett then transferred half the money to a bank account in the Bahamas. There, the documents show, three bank drafts were printed: $170,000 in the name of Marc-Andr Fortier, $100,000 in the name of Charles Rondeau and $100,000 in the name of Franco Fava.

The managers of the buildings toldEnqute that they did not know who ultimately benefited from the payments initially made to the real estate consultant in Montreal.

Links to CSST

Quebec's workplace health and safety board, formerly known by its French acronym,the CSST,manages its own properties and does not use the SIQ to rent office space.

However, according to information obtained by Enqute, Rondeau and Favareceived payments connected to a deal to extend a lease for the board.

In 2007, the CSST signed a 20-year lease with the owner of the building where its Montreal offices were located. Documents obtained by Radio-Canada show Bartlett worked with Fava, who was on the CSST's board of directors at that time, to get that lease signed.

According to emails that Enquteobtained from an anonymous source, one month later, Bartlett instructed his banker in Austria to transfer $422,575 to Fava and Rondeau, respectively.

In another document addressed to the Austrian bank, Fava indicates that this amount relates to his role in the transaction for "1199 Bleury." That was the address of the CSST's Montreal offices.

Buildings put up for sale

In 2007, the Quebec government announced that it wanted to sell three buildings: Place Qubec and the J.A. Tardif building in Quebec City, and 500 Ren-Lvesque Boulevard Ouest in downtown Montreal.

Monique Jrme-Forget, then finance minister and minister responsible for the SIQ, determined it wasn't the role of the government to manage these buildings, which were not entirely occupied by government offices.

Place Qubec was sold to a consortium made up of the real estate branch of the Quebec Labour Federation (FTQ) Solidarity Fund, along with former construction mogul Tony Accurso.

A business owned by George Gantcheff, a major player in the Quebec real estate scene, bought the other two buildings.

Enqute obtained an explosive forensic accounting report commissioned by the SIQ that shows the buyers benefited from significant advantages built into the sales contracts worth $47 million in all thatwere not revealed during the call for tenders.

The SIQ sold the buildings, but it remained a tenant in the offices it had already been occupying.

Once the call for tenders was complete, the SIQ agreed to make significant concessions to the buyers. It agreed to extend the length of its leases and pay more in rent.

The report shows only three people Fortier, one of the Crown corporation's vice-presidents, and the real estate broker hired by the SIQ were aware of the concessions.

Government foots bill for repairs

During the sale of these buildings, the SIQ also signed a clause holding the government responsible for all major repairs for 20 years. In other words: the government no longer owned the buildings, but it still had to pay forthe buildings' structural upkeep.

As soon as the buildings were sold, the renovations began. The SQI confirmed that Gantcheff's firm demanded to be paid $21 million forrepairs.

The government had topay just over $13 millionbefore the owner agreed to dissolve that clause in the agreement.

Negotiations are still underwaywith the current owners of Place Qubec to get them to agree to remove that clause.

Documents indicate that Bartlett was hired by the new owners of the three buildings to help them in the negotiations.

Emails from Bartlett to an Austrian bank, where he has an account, suggest that he was expecting a payment of $7 million from Gantcheff and one of his associates.

Denials, refusals to comment

The four people named in theEnqutereport have either denied the allegations or refused to comment.

Fortier denied having a bank account in the Bahamas, which contradicts what's indicated in the documents obtained by Radio-Canada. He also denied having received a bank draft for $170,000.

"I have nothing to say about that. I've already said everything. I didn't see anything, and it has nothing to do with me," Fortiertold Enqute.

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In response to an email containing the information in this report, Bartlett's lawyer wrote"the facts were partly inaccurate and presented in a very biased manner," adding that there would be no further comment.

Rondeau said he wanted to speak with his lawyer before answering any questions. He never called back.

Fava said he was not aware of the allegations. He denied having bank accounts in the Bahamas and ended the conversation when asked about his account in Austria.