UPAC: Jewish General Hospital ex-contractor faces 65 tax fraud charges

Quebec's anti-corruption investigative unit, UPAC, charged contractor Gilbert Leizerovici and one of his companies, R.A. Rnov-Action Inc., with 65 counts of fiscal fraud Thursday.

Among the allegations, UPAC investigators contendLeizerovici and his firm overbilledon construction work to the exterior ofMontreal's Jewish General Hospital.

• Jewish General Hospital says it notified anti-corruption unit
• Two managers resign from Jewish General Hospital
• 8 Montreal homes raided by anti-corruption police

UPAC said in a news release thatLeizerovicifaces a minimum of $310,000 in fines underthe federal Excise Tax Act, whichgovernsthe Goods and Services Tax (GST), and Quebec'sTax Administration Act, which sets out the rules for theprovincial sales tax.

If found guilty, Leizerovici could also face ajail sentence of up to two years less a day.

R.A. Rnov-Action Inc. faces the same charges and fines of at least $120,000, UPAC said.

The investigation was led by UPAC and Revenu Qubec investigators.

In a statement, a spokeswoman from the hospital told CBC News that the Jewish General is fully co-operating with authorities.

"If R.A. Rnov-Action is found guilty, the hospital will take the necessary steps to try and recoup the lost funds."