The Fonds FTQ once again haunted by organized crime

A businessman linked to organized crime tried, behind the scenes, to take control of one of the largest interior systems firms in Quebec, active in real estate projects of the Fonds de solidarité FTQ.

In recent weeks, businessman Rhéal Dallaire has secretly managed BMNJ Interior System, according to allegations in a legal action by the Laurentian Bank filed in court last week.

Dallaire’s luxurious residence was raided last year at the same time as those of Hells Angels Stéphane Plouffe and Martin Robert, two of Quebec’s most influential bikers, and mafioso Francesco Del Balso (since deceased).

BMNJ is active in two projects financed by the Fonds FTQ, which benefit from government tax credits.

About ten years ago, the Fund was tarnished by its links with those close to organized crime, notably during the Charbonneau commission.

Financial difficulties

BMNJ, the company owned by the “king of gyproc”, Hugo Bernard, has been in serious financial difficulty for several weeks to the point where the 230 employees were not paid at the beginning of February. The company has since gone into receivership.

According to documents filed in court, Laurentian lost confidence, among other things, after noticing that Rhéal Dallaire was active behind the scenes at BMNJ.

On February 9, Laurentian said it was informed by a BMNJ representative that Hugo Bernard was no longer in charge of the company. This representative would have added that “the operations of [BMNJ] were now managed in the background by Mr. Dallaire, despite [que] the bank [ait été avisée que] he was no longer a potential buyer for the operations of [l’entreprise]”.

• Listen to the interview with Jean-François Cloutier, journalist at the Quebecor Investigation Bureau on Alexandre Dubé’s microphone via QUB radio :

Indeed, a month earlier, the Bank said it had summoned Hugo Bernard for a virtual meeting because BMNJ had not respected the financing conditions granted by the bank.

Bernard was present, but also Nasreddine Bentounes, an accountant acting as a financial advisor for Dallaire. A lawyer, M^e Anthony Quevillon, was also to be present to represent BMNJ, according to Bentounes.

• Read also: Escorts, hard drugs and luxury cars for “the king of gyproc”

Dallaire’s mandate

However, “when M^e Quevillon joined the meeting, he clarified, to the surprise of the Bank, that he was not the lawyer of [BMNJ]but that he was rather mandated by Mr. Dallaire,” underlines Laurentian in the appeal.

M^e Quevillon would then have informed the Bank that the latter intended to buy BMNJ. The same day, the lawyer would have informed Laurentian that it was a woman named Isabelle Gagnon (Rhéal Dallaire’s partner) who would instead acquire the company.

“It was certainly not up to a potential third party buyer to negotiate with the Bank regarding the financial situation of the Debtor,” insists the Bank.

Contacted by our Investigation Office, Rhéal Dallaire refused to answer our questions, directing us instead to his lawyer.

► On January 29, a company called Systèmes d’entreprises CMNJ was registered in the Quebec Business Register. Rhéal Dallaire’s partner, Isabelle Gagnon, and another member of his family appear as directors.

The Fund says it is monitoring the situation closely

The Fonds FTQ says it is closely monitoring the situation at BMNJ.

“Following recent developments surrounding BMNJ Interior Systems, which has placed itself sheltered from its creditors, the Real Estate Fund and its partners are monitoring the situation and will take the necessary measures to ensure the completion of the work,” said said spokesperson Patrick McQuilken.

“According to the verifications we have carried out for our current projects, BMNJ is a subcontractor for a project in Brossard and another in Montreal,” he added.

BMNJ says it is active in the Solar Uniquartier project, on the South Shore, and at Maestria, downtown.

According to its website, BMNJ also worked on the Square Children project “in partnership with the FTQ Real Estate Solidarity Fund.”

The Solidarity Fund manages assets of nearly $19 billion for 769,000 savers who count on this money, among other things, for their retirement.

Verified subcontractors

The Fund emphasized that it was up to the general contractor to choose the subcontractors on the project sites in which the FTQ Real Estate Solidarity Fund invests.

However, he indicated that “developers, general contractors and their subcontractors [étaient] subject to the Fund’s process with regard to due diligence and their social report.” A subcontractor must therefore be accepted by the Fund before being able to work on one of its projects.

Not a first

This is not the first time that the Fund has had issues with those close to organized crime.

The Charbonneau commission had indicated that the real estate arm of the Fund, at the time called Solim, had had projects with Ronald “Ronnie” Beaulieu, friend of Jocelyn Dupuis and especially close to the Hells Angels, including a bar for nude dancers.

Jocelyn Dupuis, the boss of FTQ-Construction, had been described in the media as a “door opener” to the FTQ Fund for organized crime. He notably intervened to help the brother of a boss to obtain financing.

In 2014, the Fund appointed Robert Parizeau as head of its board of directors in order to modernize its governance. The latter retired in 2018.

Hugo Bernard’s Descent into Hell

• November 28, 2023 : Bernard would have difficulty paying debts due to a luxurious and self-destructive lifestyle, including drugs, escorts and luxury cars, reveals our Bureau of Investigation.
• November 29, 2023 : He temporarily leaves the presidency of BMNJ.
• January 15, 2024 : The Laurentian Bank is demanding a debt repayment plan from BMNJ totaling more than $5 million.
• February 9, 2024 : The Bank says it is informed that BMNJ’s operations are now managed in the background by Rhéal Dallaire.
• February 11, 2024 : The Bank is initiating proceedings to have PricewaterhouseCoopers (PWC) appointed as receiver to administer the company.
• February 12, 2024 : Judge Jean-Yves Lalonde of the Superior Court authorizes the sequestration.

Who is Rhéal Dallaire

• Real estate developer
• His Westmount home was searched in March 2023 by the National Organized Crime Repression Squad (ENRCO).
• He was one of the main creditors of Carboneutre, a company infiltrated by organized crime named to the Charbonneau commission.
• One of his companies sold vacant land in Montreal in 2019 to mafia co-leader Leonardo Rizzuto.
• In 2020, mafioso Stefano Sollecito said he lived in a house belonging to a company owned by Mr. Dallaire’s wife.
• His residence in L’Estérel, acquired from ex-impresario Guy Cloutier, in the Laurentians, fell prey to an arson attack in 2019.
• He has several criminal histories involving drug trafficking, scams, fraud, extortion, theft and assault in the 1990s.

SUBCONTRACTOR IN TWO PROJECTS

The Master

• Important complex in the heart of the entertainment district in Montreal
• Two aerial towers of 58 and 61 floors connected by a walkway
• Project valued at $730 million in 2022
• 700 rental apartments and 1042 condos

The Solar Uniquartier

• Project of 7000 units in total
• At the corner of highways 10 and 30
• Connected to the Metropolitan Express Network (REM)
• Planned investment of $3 billion over time