The City of Laval has filed three new lawsuits in an attempt to recover $9 million that it deems it overpaid, in connection with the sale of land and contracts allegedly tainted by fraud granted during the mayor’s reign Gilles Vaillancourt.
One of the three lawsuits targets the estate of Giuseppe Borsellino, who died in 2021, and Borsa Investments for land sold by the City in the early 2000s to the contractor for a fraction of its market value, the City alleges .
Originally, Borsellino had offered a sum of $372,000 for land he coveted, when the market value of it was estimated at just over a million. A call for tenders had finally been launched for the sale of this land. As part of this process, Borsa had offered $517,371 for the purchase of the land. Two other companies had submitted inferior proposals, but the city suspects them of being “submissions of convenience” aimed at legitimizing the tendering process. The transaction, which included the free transfer of another piece of land to the City, will be completed in December 2000.
Years later, the land will be subdivided and Borsa will resell these lots to construction contractors for a total amount of 7.5 million, alleges the City of Laval.
During the bidding process, the city’s director general, Claude Asselin, had negotiated the purchase of land from Borsa on which to build his personal residence. In 2004, Mr. Asselin paid $132,445 for this land, several tens of thousands of dollars below market value. He will resell his property in 2010 for an amount of 1.4 million.
In this case, Ville de Laval is claiming the sum of $759,412 from the estate of Giuseppe Borsellino.
A fraudulent system
In another lawsuit, the City of Laval accuses collaborators of Gilles Vaillancourt of having acted as accomplices in a fraudulent scheme aimed at rigging calls for tenders in order to derive undue advantages. “The system was clandestine and operated under the model of a criminal organization that infiltrates existing legal structures to exploit them for its own benefit, without the City of Laval being aware of it,” underlines the lawsuit.
Laval is claiming $6 million from Claude de Guise, ex-engineer and former head of engineering works at the City, Jean Gauthier, notary who participated in financing activities for the PRO party of Laval residents led by Gilles Vaillancourt, Jean Bertrand , lawyer and former official representative of the mayor’s party, Pierre Lambert, lawyer described as “custodian of the occult fund of the PRO party”, as well as Robert Talbot, lawyer and “trustee” of Gilles Vaillancourt, and Guy Vaillancourt, brother of Gilles Vaillancourt.
“The implementation of this system resulted, during the period in question, in the elimination of competition during a large number of calls for tenders for construction contracts and professional engineering services awarded by Ville of Laval”, emphasizes the originating application filed in the Superior Court.
Professional contracts
In a third lawsuit, Laval alleges, in particular, the architectural firm Beaupré and associates expert advisers, the landscape architect Louis Beaupré, the IBI/DAA group Inc, its manager Daniel Arbor and one of its directors, Michel Collins, of having participated in a fraudulent scheme aimed at rigging contracts.
The implementation of this system has had the effect of eliminating competition during a large number of calls for tenders for construction and professional services contracts, estimates the City, which accuses the firms of having “increased substantially increase” the price of their bids. This system was brought to light during the trial of the Honorer investigation, it is pointed out.
The City is claiming a total amount of $461,211 from them.
Laval also amended a lawsuit it had filed against Nepcon, which operated a waste and snow transshipment business in Laval. According to the City’s allegations, Nepcon participated in the fraudulent scheme set up by Gilles Vaillancourt and his accomplices to hijack City tenders. In the case of snow piling contracts, the City assesses the damage caused by Nepcon at $2 million.
Any other remedies to come?
Since 2013, the City has collected $57 million from individuals and companies who have cheated the city, including $7 million in 2022.
The current mayor of Laval, Stéphane Boyer, evokes the possibility that other procedures will be brought to recover sums from individuals or companies at fault in the future. “We want to make sure that all the stones in the garden have been turned over. As long as we have evidence or elements that lead us to believe that there have been fraudulent acts that have been posed, we will go ahead with prosecution, “he said. At Duty.
The amounts recovered by the City in these files are invested in various projects. An amount of 10 million, coming in particular from the reimbursement paid by Gilles Vaillancourt after his conviction in 2016, has been invested and the interest generated is used to help young people in disadvantaged neighborhoods, said Mayor Boyer.
The rest of the amounts recovered are paid into the coffers of the City to finance projects and services to citizens, he added.