R v Duffy - Crown submission for counts 1-28

7/24/2019 R v Duffy - Crown submission for counts 1-28

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INTRODUCTION

1. In this trial the Court heard from more than fty witnesses between April 2015 and

Deember 2015! and reei"ed more than 100 e#hibits. $rom the Crown%s

perspeti"e the most signiant part of the trial ourred in the rst ten minutes

when hibits 1 through ' were led with the Court. (hose e#hibits tell muh of

the story) the laims made for li"ing e#penses in the *ational Capital +egion

,-*C+/! the ontrats entered into between erald Donohue and the enate of

Canada! the business reords of aple +idge edia and 3ttawa IC$ that pro"ide a

lue ,later onrmed by many of the reipients/ of the disbursement of enate

funds to "arious indi"iduals. If the laims had been submitted in aordane with

aepted pratie! those ser"ies would range from -arguably legitimate to

-learly prohibited. hibit 4A ontains spei tra"el e#pense laims that appear

on the fae of things to be legitimate. owe"er! when ompared to enator Du6y%s

diary and other e"idene this ourt has heard! the inappropriate nature of these

laims is re"ealed.

2. (he diary itself is hibit '. It relates to ounts 1 to 27 on the information and it is

the most important piee of e"idene tendered in this trial. (he diary was not

intended for publi e#amination. (he diary was not shared with enate $inane who

were harged with the responsibility to e"aluate and assess enator Du6y%s

e#pense laims. 8hile it%s possible the entries ontained in hibit ' weremanipulated before being sent to *igel 8right! that doesn%t appear li9ely. (here

were e6orts to redat ertain entries. It was meant to be treated ondentially by

*igel 8right. In his testimony enator Du6y spo9e ontemptuously of *igel 8right%s

deision to turn the diaries o"er to the +CP.1 (he diary re"eals where enator

Du6y was and what enator Du6y was doing during the period speied in the

information. As it pertains to spei e#pense laims! the diary ,augmented by the

viva vocetestimony of the witnesses/ shows that enator Du6y was engaged in

ati"ities whih were not properly the sub:et of e#pense laims. (hose ati"ities

fall into three ategories) non;parliamentary partisan ati"ities! personal or pri"ate

matters and attendane at funerals.


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=. (hese submissions! li9e the trial itself! highlight the di6erenes in approah between

Crown and defene in onnetion with these allegations. (he Crown%s approah is

rooted in the argument that this is an employee fraud. Despite the length of the

proeedings! the detailed e#amination of poliy instruments! the ndings of e#ternal

audits! the media attention! and the politial impliations of the sub:et matter of

the proeedings! this is a case about an employee who exploited his positionto claim compensatoy payments to which he was not entitled.

5! 8ith respet to the rst two ounts on the information the e"idene shows that

enator Du6y reated a tion that he li"ed in P&I and inurred additional osts to

perform his duties in the enate. During the trial onsiderable time was de"oted

to an e#amination of the meaning gi"en to -primary residene and -seondary

residene and -designated residene and -residene in the pro"ine for whih you

are appointed and -*C+ residene and -pro"inial residene! o"er time! in

"arious enate poliy instruments. (here was time de"oted to the issue of what it

means to be a -resident for the purpose of satisfying onstitutional eligibility to

ser"e in the enate. >ut all of that ignores the fat that theper dieme#penses that

were laimed by enator Du6y and paid to him were designed to ompensate him

for the nanial hardship assoiated with his presene in the *C+ to perform duties

on Parliament ill. ?ea"ing aside all the ba9ground noise the fat is that enator

Du6y didn%t inur any additional osts to wor9 in the enate. $atually! he was not

entitled to ma9e those laims for ompensation. (he analysis pertaining to these

ounts really boils down to a simple @uestion) "hee did #enato Du$y li%e&

6! 8ith respet to the spei tra"el e#pense laims the e"idene shows that enator

Du6y submitted and was paid for tra"el e#penses that were inurred for non;

parliamentary partisan ati"ity ,thus not eligible e#penses/ or ati"ities that werelearly of a personal or pri"ate nature. (he issue in respet of spei tra"el

e#pense laims is answered! in eah instane! by the simple @uestion) "hat was

the actual pupose o' the tip&

'. 8ith respet to the ontrats with erry Donohue the e"idene shows that enator

Du6y established an -o6 the boo9s payment sheme using a front man to ma9e

the payments. Donohue was e6eti"ely a paymaster. &"en if Donohue pro"ided

the ser"ies as portrayed in the ontrats a dubious assertion at best

appro#imately 2B< of the money was atually distributed to other people. (he

e"idene shows that enator Du6y established a slush fund. e reported that wor9had been ompleted :ustifying the payments but held money on aount to ma9e

disbursements entirely within his own disretion. 8hile it is a9nowledged that all

members of the enate en:oy broad disretion in determining researh pro:ets!

they are not permitted to mislead the sta6 in enate + and remo"e any e6eti"e

nanial o"ersight. (hen! of ourse! there are the payments themsel"es) for laims

pre"iously re:eted ,ma9e up and ell phone o"erage/ for family members

pro"iding updates from P&I ,Cabe/! to prepare a speeh for whih the enator


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was otherwise paid pri"ately ,*ils ?ing/ and to defray the osts of a personal trainer

,Cros9ery/. ome of the payments might ha"e been legitimate if enator Du6y had

resorted to the orthodo# method of arranging ontrats. ta6 in + ould monitor

the wor9 and @uestion the e#penses as neessary. >ut the method seleted by

enator Du6y remo"ed any possible o"ersight. Publi funds were put at ris9) all of

those payments were fraudulent. enator Du6y initiated a proess that lead toontrats between the enate of Canada and his old friend erald Donohue. (he

ontrator who agreed to pro"ide the ser"ies was erald Donohue.2 (he nature of

the wor9 "aried o"er time but none of it ontemplated payments to "olunteers

,Cain/ ! payments to old friends ,ittleberg/! or payments in respet of obtaining

legal ad"ie ,>ourrie/. (he analysis of the ounts pertaining to the ontrats also

lends itself to one simple @uestion) Despite what the contacts stipulated)

what was the money actually used 'o&

+ole of poliies

7. (he poliies do not :ustify the ompensatory payments sought and reei"ed by

enator Du6y. e did not inur additional e#penses and so is therefore not entitled

to payments for ?i"ing in the *C+ laims. (he spei tra"el e#pense laims in

hibit 4A are not allowable laims per poliy. Despite the built in e#ibility

assoiated with er"ies Contrats! the struture of the arrangement and the

payments represent a gross de"iation from the e#isting rules and poliies.

E. (hat being said! this trial is not about the poliies. If it were! the Crown would ha"e

to establish that enator Du6y was aware of a partiular poliy and eleted to

beha"e in a manner inonsistent with the stipulated poliy instruments. In histestimony he said he only s9immed the poliies.


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enator Du6y%s testimony. It aords with a ommon sense understanding of

human nature. It also aords with a ommon sense approah to the "olume of

materials pro"ided to enator Du6y upon his appointment.

10.(he poliies are not statutory enatments. It would be an error to ele"ate them to

that le"el. (he mere e#istene of ambiguity or loopholes or onits between andamong the "arious poliies is immaterial gi"en the nature of the allegations here.

(he allegations here in"ol"e deeption! abuse of position and misrepresentation of

fat that enabled enator Du6y to reei"e reimbursement and ompensation for

whih he was not entitled.

11.(he standards appliable in this trial in"ol"e Criminal Codepro"isions respeting

fraud and breah and trust.

12.(o reei"e the benets assoiated with li"ing in the *C+ enator Du6y asserted as a

fat that he resided in Ca"endish! P&I. (his assertion is untrue. e asserted that

beause of this! he inurred additional e#penses assoiated with performing hisduties on Parliament ill. 3ne again! untrue.

1usiness aording to the laim forms. >ut the ati"ities in @uestion are

not aptured by any notion of -parliamentary funtions notwithstanding the broad

sope of that onept. (he e"idene shows that the asserted fats underlying those

laims are untrue.

1=.enator Du6y asserted that erald Donohue performed partiular ser"ies for him

and "eried Donohue%s performane of those ser"ies! a neessary prere@uisite tothe payments that were made.5(he assertions with respet to Donohue%s wor9! the

sope of the wor9 and the ompletion of the wor9 were untrue. enate +

proessed the payments on the basis of enator Du6y%s misrepresentations.

15.&mployee fraud ,and gi"en the nature of his position! breah of trust/ e#ists

independent from any poliies whatsoe"er. At its ore! fraud is established by

e#amining the irumstanes and determining whether some ad"antage was

deri"ed through deeit.

14.pea9er eorge $urey highlighted this reality in his testimony when he said)

its not written anywhere that I cant hire you, Mr. Bayne, to mow my lawn on my Senate expenses,

but I, I know intuitively that I cant do thatit may notbe written down that, that I cant o out

and borrow money, or or use the publics money to , to raise !unds !or a neihbour to et him

5 (his is a ritial feature of ser"ie ontrats) the wor9 had to be performed before

the money was paid. (here was therefore no legitimate way to set up a slush fund!

to be drawn upon by enator Du6y on his unilateral authority! as was done here.


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elected to a provincial house o! assembly, but I know intuitively that you dont do that. "hats not

a proper use o! public !unds.#$eore %urey, & 'ecember ()*+, pp. -+.

1'.(he deision in r. v. Lavigne 2011J o: no 11E< 3ntario uperior Court per +.F.

mith F. is instruti"e. 4?a"igne was found guilty of fraud by laim for

reimbursement for tra"el that was atually underta9en by his researh assistant.

(he impugned ondut ourred in 200


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pro"ide ad"ie under the protetion of soliitor;lient pri"ilege. $or his part enator

Du6y testied that -the o"erarhing message was trust the sta6. (he sta6 are here

to 9eep you on the straight and narrow! 9eep you out of trouble! pro"ide you

ad"ie. '

21.Despite these o6ers of assistane from ompetent! 9nowledgeable and non;partisanrepresentati"es of enate administration! we 9now that enator Du6y ne"er sought

out s. Proul# or r. Audent or r. >elisle e"en when he had @uestions about

resideny! per diem laims or use of enate resoures for partisan ati"ities. 8e

9now this beause there is no referene to any suh meeting in enator Du6y%s

detailed and omprehensi"e diary. 8e also 9nown this from the testimony of the

witnesses.

22.In respet of r. Audent! we 9now that any laim that enator Du6y was resident

of P&I was entirely at odds with r. Audent%s approah to resideny! relying as he

did on indiators li9e physial presene! loation of your abode! ommunity

indiators inluding where you "ote! where you pay ta#es! where you reei"ego"ernment ser"ies! dri"ers% liene! health ser"ies and soial fators rereating!

ban9ing and business ati"ities.

' (estimony 7 Deember 2015! p.''


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,-RT I. CO/,0N#-TOR 0,0N#0 C3-I/# -##OCI-T0D "IT4 3IIN IN T40

NCR

Crown theory

2


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more than 1009m from Parliament ill enator Du6y was not eligible to reei"e

these payments.

25.enator Du6y%s moti"e in laiming the primary residene designation for his ottage

in P&I also fullled his desire to establish a lin9 with that pro"ine to satisfy

onstitutional re@uirements to e"en ser"e in the enate. (he ourt heard e"idenethat enator Du6y%s appointment was deried as onstitutionally in"alid e"en

before he was sworn in! e"en before he ga"e an oath that he was resident of P&I.

8hile in reality Du6y was the Senator from Kanata! this is the @uandary that he

faed when he was appointed to represent P&I.

8hat do we 9now about -residenyO

24.ar9 Audent testied e#tensi"ely on the sub:et of resideny. Among the things

he said)a. +esideny is a @uestion of fatMb. (here are indiators that inform the determination of one%s plae of

residene! inluding)i. Physial preseneMii. Domesti arrangement! meaning where your family li"esMiii. 8here you "oteMi". 8here you delare yourself as -resident for inome ta# purposesM". 8here you en:oy go"ernment ser"ies) dri"ers% liene! reeipt of health

areM"i. 8here your business or wor9 is loatedM"ii. 8here you do your ban9ingM"iii. 8here you partiipate in rereational ati"ities.

. e! and onse@uently other members of enate administration! assumed that

enator Du6y satised the onstitutional resideny re@uirementMd. In relation to all enators the issue of residene! for onstitutional purposes!

boiled down to whether the enator%s main residene was loated in the

pro"ine for whih heBshe was appointedMe. enators were on tra"el status and entitled to ompensation -if you%re not

from this region.

2'.During his testimony r. Audent resisted a suggestion that the fators he ited in

e"aluating residene were his own -personal indiators. e testied that the

indiators that he ited were deri"ed from the :urisprudene.

27.3n the last day of the trial it was agreed that the defene ould le an Inome (a#$olio prepared by the Canada +e"enue Ageny pertaining to -prinipal residene

with the pro"iso that the Crown ould le any other ta# folios of rele"ane to the

issues in the trial. Appended to these submissions is Inome (a# $olio 5;$1;C1

titled -Determining an Individuals Residence Status. (he omplete folio an be

found at (ab 2 to these submissions. (he salient portions are these)


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2E.(he e"idene re"eals that enator Du6y maintained 3ntario health o"erage during

the period up to Fanuary 201


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but his aountant -refused to do that as a professional! beause he said that was

illegal.11


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H&A+ A++ISA? D&PA+(Q+&200E Dro"e to ottage in rental ar on

2E ay 200E p.


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39.(he enate typially brea9s in mid;Deember and suspends its sittings until

$ebruary! about si# wee9s per year. (he sitting shedule an be determined from

hibit 44! entered in the ourse of Diane Pugliese%s testimony. (he following hart

reets enator Du6y%s whereabouts during the winter brea9 between 200E and

2012. 3"erall he spent 1= days in P&I during that period. (he brea9 period is more

than 27 wee9s. e didn%t ma9e it ba9 to P&I at all during the 2010B2011 brea9. e

spent 10 days in P&I during the 2012 B 201< brea9 at a time when the enate

e#pense issue had attrated the attention of the media.

Date Whereabouts per diary Other travel, including any time in PEI/* 'ec ())0 ex &, p. 1harlottetown %irst travel to reion as Senator# accordin to expense

claim 2xhibit (, "ab *

3btains 42I drivers licence

/* 'ec ())5 26 &, p. ( St. "homas, 7.S. virin islands Senate ad8ourns9'ecember *+th

'urin that period :&+ days ;2 nights in PEI Hotel ad8ourns

to + %eb

;expense issue developin momentumeause enator Du6y relies on diretion he laims he

reei"ed from the Prime inister! from a memo prepared by Creery! a sta6er in

enator ?e>reton%s oKe and enator Da"id (9ahu9 to legitimiLe his entitlement to

e#pense laims respeting the *C+. is portrayal of this diretion re@uires areful

e#amination.

=en:amin Perrin.


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unsympatheti to enator Du6y%s prediament when! years later! ad"ised enator

Du6y to repay the money paid to him in respet of *C+ li"ing e#penses. (hat

testimony an be found in 14 Deember 2015! at p. 102.

=5.enator Du6y%s appointment to the enate was announed on 22 Deember 2007.

=4.enator Du6y met with representati"es of enate Administration on 2< Deember

2007! inluding ar9 Audent who speially instruted him about the need to

maintain his resideny status in the pro"ine for whih he was appointed) P&I. All of

the representati"es of the administration e#tended the in"itation to approah them

with any @uestions on a "ariety of topis. (he letters from the head of enate

$inane and the ating head of + show a willingness to answer any @uestions! in a

non;partisan and professional way! onerning entitlement to e#penses.

47. 3n 2= Deember 2007 an artile appeared in the Charlottetown Guardian

written by a Professor >ulger! whose thesis was that enator Du6y%s appointment to

the enate was onstitutionally in"alid beause he was not a resident of P&I.

48. 8ithin a few days of the >ulger artile enator Du6y tra"elled to P&I. e

stayed at the Charlottetown otel. e obtained a P&I dri"ers% liense. ow

enator Du6y obtained a P&I dri"er%s liene in early Fanuary 200E is a mystery. e

hadn%t resided in P&I sine the late 1E40s.

=E.Conerns about the >ulger artile had resonated to suh a degree that a sta6er in

enator ?e>reton%s oKe was onsripted to prepare a memo on the sub:et.

Contrary to enator Du6y%s testimony! the Creery memo dated 4 Fanuary 200E

pro"ides anything but "eriation that his laim to being a P&I resident is "alid. (he

memo delares that any enator asserting a partiular residene laim would most

li9ely a"oid any hallenge from the enate itself) -if they say they are a resident of

pro"ine U and ha"e a deed to pro"e it the other onourable embers do not

@uestion this. (he Creery memo only heightens onerns about the "alidity of

enator Du6y%s laim of P&I resideny! it does not alle"iate them.

50.8e 9now enator Du6y didn%t onfer with r. Audent both men testied and there

was no referene to any suh meeting and no suh meeting is referened in the

diary. 8e also 9now what Audent would ha"e said! had suh a meeting ourred)

residene is a @uestion of fat. And based upon the indiators he identied duringhis testimony! it is inonei"able that! with awareness of all of the irumstanes!

r. Audent would ha"e identied Ca"endish P&I as enator Du6y%s residene.

51.3n ' Fanuary 200E enator Du6y! who at that point had not been sworn in! attended

an orientation session. e was still doubtful and onerned about his resideny

status. In his testimony enator Du6y said he was see9ing -reassurane from

enator (9ahu9. 14 Deember 2015! p.'=J 8hate"er ad"ie or information


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enator Du6y eliited from enator (9ahu9! it is lear that it was prompted by false

and misleading statements by enator Du6y. (here%s no indiation in the trial

reord that enator (9ahu9 9new about enator Du6y%s personal a6airs. enator

Du6y testied that he and enator (9ahu9 were a@uaintanes ,on the basis that

he may ha"e inter"iewed enator (9ahu9 one/ 14 De 2015! p.'5J.

52.(he entire e#hange is aptured in enator Du6y%s testimony from 14 Deember

2015! at pp. '= to 'E. enator Du6y answered in the aKrmati"e when enator

(9ahu9 as9ed if enator Du6y owned a house in P&I! paid for hydro! paid for gas!

insurane and ,property/ ta#es there. >ut the information supplied by enator Du6y

was misleading! at the "ery least)

(he property at 10 $riendly ?ane was not a house! it was a ottage1E

(he hydro was shut o6

(he last shipment of propane was deli"ered in the fall when the ottage was losed

up

enator Du6y paid property ta#es in P&I as a non;resident

5


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55.enator Du6y was able to o"erome his personal opposition to ma9ing per diem

e#pense laims. e direted his subordinates to prepare the doumentation and

submit it for his benet. Conerned that he might ha"e laims denied! he pre;

signed laims forms! ertifying that the information ,at that point the form was

blan9/ was aurate and orret and in aordane with enate poliy.

54.enator Du6y 9new embers of Parliament and enators ali9e were entitled to

ompensatory payments to ma9e up for the fat they ha"e to tra"el to Parliament

ill to wor9. e testied to that e6et. e testied that he 9new that prior to his

appointment.20 It is inonei"able that he ould beome unaware of this following

his own appointment to the enate in Fanaury 200E.

5'.enator Du6y simply did not inur any additional e#penses in onnetion with his

wor9 on Parliament ill. e had wor9ed on Parliament ill for years before his

appointment. is daily routine was largely unaltered following his appointment. If

anything! his e#penses dereased upon being appointed) he left the same

residene in anata! dro"e to the same plae! ate his meals at the same plaes.(he sitting shedule of the enate was typially three days per wee9. And following

his appointment he had a par9ing spot! although he often fa"oured ta9ing ta#is.

(heper diemlaims made month after month and year after year were in"alid.

(hose laims represent riminal fraud and breah of trust.

20 (estimony 14 Deember 2015! pp. 105;104.


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,-RT II. TR-03 0,0N#0 C3-I/#

enate Administration Priniples

52.$rom the testimony at the trial and the re"iew of "arious enate poliy instruments

the following points emerge)

i. -Parliamentary funtions are "ery broadly denedMii. Partisan ati"ity is e#pressly reogniLed as part of the wor9Miii. enators en:oy wide latitude to tra"el and engage in other ati"ities in the

fulllment of their parliamentary funtionsMi". enators ha"e unilateral authority in the seletion of ontrators!

assignment of tas9s! and designation of pro:etsM". iring deisions are entirely within disretion of the enatorsM and

"i. (here is a ompensatory sheme in plae in respet of osts assoiated

with the disharge of -parliamentary funtions

5-*o person shall ause the enate to pay or reimburse a ost under

this hapter unless the ost was atually inurred! reasonable and

authoriLedVM

". (here was an e#petation that enators would e#hibit nanial prudene

in onnetion with tra"el. 3ne again! this is a self;e"ident priniple gi"en

their o"erarhing role to promote the publi interest. It is set out in

Di"ision =! Chap =)0

follows)

-ub:et to the need to full their parliamentary funtions and to

obtain reasonable omfort and on"eniene! a person shall e#erise

due eonomy in the seletion of tra"el options

"i. (he e#isting poliy framewor9 delared it to be perfetly aeptable for a

enator to reei"e some inidental personal ad"antage in the ourse of


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disharging their parliamentary funtions. (he inidental personal use

dotrine would apply to benets or ad"antages that were deri"ati"e or

anillary to the predominant or main purpose for whih the ost was

inurred. *o other interpretation is possible without rendering the

onept of -inidental use meaningless. (he further restrition on the

appliability of this priniple is that the inidental benet ould not gi"erise to any additional osts to the enate. Di"ision


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57.It is worthwhile to ta9e note of the language ontained in the tra"el e#pense laims

forms. enator Du6y signed laims forms in blan9 and on"eyed false information.

(he forms say)

I certify that the foregoing expenditures have been incurred by me on parliamentary functions, as defined in the

Senate Administrative Rules

and

I hereby certify that these charges are in accordance with the Senate Administrative Rules

5E.(he stated reason for enator Du6y%s reliane on pre;signed forms was a onern

that he would e#eed the 40 day deadline in ling his laim. It is nd any basis in

reality for enator Du6y%s onern about e#eeding the 40 day limit for the ling of

laims. (here does not appear to be any period of time where enator Du6y is

away from 3ttawa for 40 onseuti"e days. 3n the only oasion where enator

Du6y did e#eed the 40 day time limit ,in 2011/! following the pro"ision of ane#planation by the enator! the laim was proessed in the ordinary ourse.21

40.elanie erer said she learned the pratie of pre;eritfying tra"el e#pense laims

forms from ?oren Cihini and illian +o9osh. >oth women wor9ed for other

enators at the time and were not as9ed to engage in any training on behalf of

enate administration. s. Cihini agreed that on limited oasions she relied on

pre;signed forms but e"en then ensured that the enator "eried the auray of

the laim by double;he9ing it after the fat. 3ne an only imagine that if s.

Cihini had pro"ided ounsel to s. erer in respet of the pratie! she would as

well ha"e inluded the part about the need to "erify the auray of the laim with

the enator following its submission. s. +o9osh denied using pre;signed laims

forms.

41.Diane harf fully embraed the deepti"e! unethial and illegal pratie of relying

upon pre;signed forms. s. harf said the pratie was widespread! although did

not speify how she 9nows this! and her wor9 for enator Du6y represented her rst

wor9 in the enate. 8hether true or not! it doesn%t ma9e the pratie appropriate.

(he use of pre;signed forms had the e6et of eliminating any independent re"iew

by enator Du6y of his laims! and it undermined e6orts by nane oKials to ma9e

sure the laims were appropriate. Ruite naturally s. >ourgeau relied on enator

Du6y%s e#pense laims as ha"ing his attestation of auray and propriety when inmost ases he hadn%t signed o6 on the laims at all.

Proof that enator Du6y was diretly responsible for the e#pense laims in hibit

4A

21 (here is a diary entry at p.151 where enator Du6y notes) -write letter to

internal eonomy re) e#penses.


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42.i"en enator Du6y%s reliane on the orrupt pratie of using pre;signed forms

how an we be ertain that he had a diret role to play in the laims in hibit 4A

whih are referred to in ounts < to 20 in the informationO

4oarding passess must get them!

preser"e them and pro"ide themJ

< eptember 5;7! 200E

-enate business

>oarding passes

= Fuly 2;

-Publi >usiness meet loal

oKials on broadasting issues

as reeipt

5 De E;12! 2010

-enate >usiness pea9ing

engagement W meetings

>oarding passes

4 De usinesseals with Andrew a#ton Fr. X r.

>oarding passes and ta#i reeipts

' E;10 Fuly 2012

-edial appointment with speialist

in 3ttawa

Denied then re;submitted -ommunity

e"ent elanie erer ating on

diretion from en. Du6y7 ept 11;1

pea9ing engagement enate

business

(a#i reeipts W boarding passes

$Q*&+A? C?AIE 10 April 200E

-Sisit region

>oarding passes

10 1';17 ay 2011

-enate business

(a#i reeipts

11 2E ay 2011

-enate business;;; meetings

>oarding passes

12


28/65

Page 27of 65

-enate business ruial meeting

e :ust departed from Ch%town usiness

N'!E05.50

eet ean at =

easons! attend

iranda%s play at

Ferio Playhouse.

3nly possible

-hoo9 anelled

attendane at

-ananih $air

with on. ary

?unn. ?unn says

Du6y ne"er

attended although

the e"ent too9

plae. -a"in

dri"es eather

and Faney to hi9e

rouse ountain

$amily trip to

>.C.

1

eptembe

r 200E

(4=;

04'E7

EB10J

2;C

tra"el

oinides with C

setion!

daughter

2

Deember

2010


30/65

Page (9of 65

J

N10!452.1E

of trip) fundraiser

for Co9rell ouse.

Diary suggests

that at best he

arri"ed late.

Arrangements forhis spea9ing

engagement made

';10 days prior to

e"ent. DeouLaJ

(he ight was also

boo9ed a wee9 in

ad"ane around

iranda%s due

date) 1 De

iranda gi"es

birth son

YColinO! partner

Y eanOJ

(4=;

174'=

1


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32/65

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penses relating to non;Parliamentary partisan ati"ities

8hat the e"idene re"eals

44.(he testimony heard in this trial learly re"ealed that enator Du6y was engaged in

non;parliamentary partisan ati"ities in respet of his tra"els on Fune 1Ethand 20th!

200E. Dean Del astro desribed his e"ent in Peterborough as a fund raiser!

followed by a "isit to a -ouple of establishments where he and enator Du6y met

some people. (he ->rea9fast with >arry e"ent hosted by >arry De"olin the ne#t

day had the same ob:eti"es) to raise De"olin%s politial prole and to -raise a small

amount of money.

4'.?i9ewise! enator Du6y%s west oast tra"el from Fune 21stto


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'1.Cathy ?eod%s e"ent was a fundraiser and an opportunity to get together with

people from the riding. he said she earlier made an informal in"itation to enator

Du6y to attend her e"ent.

'2.(he enate is a partisan institution and enator Du6y was perfetly free to engage

in partisan ati"ity. It is inappropriate! howe"er! for a enator to ma9e a laim for

certain e#penses assoiated with that sort of ati"ity. (his message was

ommuniated to enator Du6y in the introdutory letter he reei"ed from *iole

Proul#)

-enate resoures may not be used for partisan matters that are non;

parliamentary in nature suh as nomination ampaigns or eletion

ampaigns.

'.C. r. Dunan


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testied that Du6y%s attendane would be ontingent upon him -tying it to some

other e"ent on Sanou"er Island. In desribing how arrangements are made to

seure guest spea9er for e"ents! r. Cannan spo9e about the need to ma#imiLe a

guest spea9er%s itinerary. r. r. Cannan said) -they don%t ome speially for the

&DA e"ent. ihael ?auer who testied in respet of enator Du6y%s attendane at

the fundraising e"ent in the Hu9on testied that enator Du6y attended at enator?ang%s in"itation and was -already on the west oast on go"ernment business.

'4.(his e"idene is in perfet harmony with the testimony of pea9er eorge $urey

who! in response to a @uestion about attending a fund;raising e"ent inidental to

-legitimate tra"el for aJ parliamentary funtion said)

-If there was no e#pense inurred and it wasn%t a primary purpose of the

tra"el! it! it would be ne.22

''.enator Du6y%s hotel osts were onsistently paid by the &DAs for whom he

appeared! begging the @uestion) if the e"ents were part of his parliamentary

duties! why wouldn%t enator Du6y bill the aommodation osts ba9 to the enate

as wellO

'7.enator Du6y said that he @uestioned enator (9ahu9 about his e#penses in

onnetion with his role to do the Prime inister%s bidding and broaden the base of

the Conser"ati"e party in antiipation of the ne#t general eletion. tated

di6erently) he had @uestions about his e#penses. Despite earlier o6ers by

representati"es of enate nane and + to answer preisely those 9inds of

@uestions he eleted to approah enator (9ahu9 in informal way! following a

meeting! and here is what was said! aording to enator Du6y E Deember2015J)

Well, he new, as did the rest of the Senate !eadership, that "am and I, and "atric, and to a degree, #ancy$reen, had been recruited to try and expand the pool of accessible voters and provide third party validation

for the "rime %inister in his &uest to get a ma'ority( And so, he said, I now you)re going to be on the

road(

And I said, Well, how much of this is the party going to pay for, and how much of it is the Senate going to

pay for* And he said, When you are on the road, you)re doing public business( +ou)re meeting with

mayors, you)re meeting with councillors, you)re meeting with local officials, it)s all under the rules, it)s all a Senator is always on( -he Senate doesn.t disappear during election times( -he Senator is always a

Senator( And whenever you)re out in the public, you)re on duty, and Senate resources are provided for that,because as it says in the SARS /ph0, partisan activity is an inherent and essential part of being a Senator(

1( So did that include partisan activities as well*

22 (estimony pea9er eorge $urey ' Deember 2015 at p.


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A( +es( 2xcept, for the only the exceptions that are in the SARS, which are during a federal election

campaign, during a nomination race, on behalf of a particular candidate, and you cannot donate public

money to a "olitical "arty(

'E.$rom the passage abo"e! e"en assuming that the brief e#hange almost se"en

years earlier unfolded :ust as enator Du6y says it did! it is unlear what enator

(9ahu9 9new or preisely what @uestion he was being as9ed to answer. (hepassage abo"e begins with enator Du6y%s ontention that enator (9ahu9 has

some prior understanding of the nature of enator Du6y%s assignment from the

Prime inister. (here%s no reason to neessarily belie"e that enator Du6y was in a

position di6erent from any other enator. 8hat is signiant is that enator Du6y

9new that there was a problem passing his e#penses for partisan -friend raising

along to the enate.

70.3n the basis of an informal hat ,enator (9ahu9 was the Conser"ati"e leader on

the Internal &onomy Committee! but he was not pro"iding any ruling or opinion in

his formal apaity2


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and larify the information that he ontends was originally pro"ided by enator

(9ahu9.

Introdution to the e#amination of Counts ' though 17

72. As mentioned abo"e! the enate Administrati"e +ules draw a distintion between

parliamentary business and personal businessM enate resoures are speially

earmar9ed for the former! but not for the latter. (his -wor9 "ersus -personal

dihotomy is something most people are familiar with. enator Du6y testied that

he was aware of the need to separate wor9 and personal matters. 8e learned thatin addition to fullling his enate responsibilities! enator Du6y was engaged as a

paid spea9er. e agreed that he ouldn%t use enate resoures in support of his

pri"ate business a6airs.

7


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74.enator Du6y says he arranged to tra"el to >C on the ?abour Day wee9end in 200E

to support ary ?unn by attending a large outdoor agriultural fair that too9 plae

o"er three days e"ery eptember in aanih! >C. enator Du6y said this

agreement had ourred at a meeting in Fune at a loal stea9house. Indeed the

diary reets that enator Du6y shared a meal with r. ?unn! but fails to reord any

agreement that had been stru9 at that time. ?unn had been re;eleted in the 2007general eletion but was -holding on by his ngertips aording to enator Du6y.

7'.enator ?unn testied that there was ne"er any solid arrangement onerning

enator%s Du6y%s attendane at the aanih $air. e identied the fair as a

prominent and important loal e"ent. e testied that enator Du6y would be

welome at the aanih $air -if he was oming to the west oast. e e#plained that

a number of di6erent &letoral Distrit Assoiations ould share the osts if enator

Du6y was oming with the plan to attend a number of e"ents.2= r. ?unn said that

the disussion about enator Du6y oming to aanih li9ely happened following a

auus meeting. e reiterated that the details were not lo9ed down. e had a

"ague reolletion of disussions between the members of his &DA with enator

Du6y onerning payment of his e#penses. e said that ourred one to two wee9s

prior to the e"ent. Certain members of the &DA e#euti"e testied and while it

appears that some disussions about enator Du6y%s attendane at the $air

ourred! no agreement was onluded.

77.+obert allsor said it was ommon to try to seure the attendane of a speial guest

-if a tra"elling dignitary wasJ in the area. Don Page understood that some e6orts

were made to seure enator Du6y%s attendane. Page too said that if enator Du6y

was in the area ,that is! for some other reason/ then they would ome o"er to the

$air. arilyn ?o"eless said she had no part in anelling enator Du6y%s attendane

at the $air and was unaware of any reason for that to happen.

2= Pro"iding further e"idene that other witnesses grasped that non;parliamentary

partisan ati"ity ould not be e#penses ba9 to the ta#payers.


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7E.In short! nobody speially realls arranging for enator Du6y to attend! no one

anelled him at the last moment and one member of the e#euti"e e#pressed the

"iew that there was no reason to anel his attendane.

E0.enator Du6y made tra"el arrangements on eptember 1stfor himself and his wife

to y to Sanou"er. Sitoria >C might ha"e been a more logial hoie! sineaanih is loated on Sanou"er Island. In any ase! enator Du6y ne"er attended

the aanih $air. e laims he reei"ed a phone message in his hotel room! a

mysterious phone all some might say! instruting him -Do not ome to the aanih

$air. In eah retelling the ontent of the all is di6erent. inutes later the

message! from a "oie he didn%t 9now! was) -enator! plans ha"e hanged! do not

ome to aanih. Please do not ome. e agreed he ould ha"e noted down the

name of the aller! but didn%t. e testied that last minute anellations are

ommon in politis! although at that stage in his areer he had only been a member

of the enate for less than 7 months.

E1.enator Du6y had ary ?unn%s ell phone numberM that%s how he was going toarrange to be pi9ed up when he ew from Sanou"er to the Island. e oneded

that he was onfused by his anellation! and yet he did not follow up with ary

?unn at the time. e disussed the matter with ary ?unn only later after returning

to 3ttawa. Hears later! when the +CP were e#amining his tra"el e#penses!

enator Du6y sent a message reminding r. ?unn the reason his attendane at

aanih was anelled) the arri"al of the 3lympi $lame. Het neither ?unn nor the

other members of the e#euti"e "iewed the presene of the 3lympi ame as any

reason to anel enator Du6y%s attendane at the $air.

E2.enator Du6y said he reei"ed the "oie message anelling his appearane at

aanih on the rst night he stayed at the hotel. e eleted to stay for the duration

of the trip.

E


40/65

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E5.enator Du6y said that -it was nie to see my daughter%s play! and it was nie to

see my 9ids! but it wasn%t the purpose of the trip.25 A notation in the diary for =

eptember 200E reads) -pa9 for Sanou"er. A notation in the diary for 5

eptember 200E reads) -;ly to ancou%e < -C =1(8 a 1*.** 'o /ianda>splay.

E4.(he timing of the tra"el! the destination seleted! and the notation in the diary all

demonstrate that enator Du6y and his wife tra"elled to Sanou"er to see

iranda%s play. e says so in his diary. 8hile any e"ent an be anelled! what

renders his aount totally inredible is the failure to follow up with the person

whom he laims he arranged the "isit! despite ha"ing the means to do so.

E'.(he trip was purely a pri"ate matter. It is nie that enator Du6y supports his

daughter but the deliberate deision to e#pense the trip is fraudulent.

25 (estimony! 1' Deember 2015! p.75.


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A orretion

E7.It has been suggested that the Crown%s opening ontained an indiation that

enator Du6y purhased a dog at the dog show in Peterborough on the < rdof Fuly

2010. It didn%t. 8hat I did say is that enator Du6y arranged to buy a puppy. (hat

is wrong. (he e"idene re"eals that enator Du6y and his wife went to the dog

show -to ma9e arrangements to buy a puppy.


EE.enator Du6y and his wife pre"iously purhased a erry blue terrier from a woman

named >arb (homson. (he name of the dog was Ceilidh. (here are a number of

referenes to the dog in the diary! si#teen by my alulation. (he diary ontains an

entry on p.'7! 22 April 2010! -Ceilidh lea"es us at arh +d. Set Clini.

100. Aording to the diary! hibit '! enator Du6y dro"e to Peterborough on

$riday Fuly 2nd! 2010. e stayed at the uper 7. (he ne#t morning he met up with

Dean del astro and his wife for o6ee. (hereafter the enator attended what he

portrayed as a -PA ,publi appearane/ at the -Cdn ennell Club show and

lunheon *ihol%s 3"al! Peterborough. (his is all of the information that isa"ailable from the entries in the diary.

101. Aording to the laim! found in hibit 4A! (ab =! he was aompanied by

eather Du6y. (here areper diemlaims for both indi"iduals for both days of the

trip.


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102. Amongst some of the Crown witnesses there was onfusion whether >arb

(hompson attended the dog show in Peterborough in Fuly 2010. (he mystery was

sol"ed when >arb (hompson testied and said she didn%t attend that year! but had

been a past partiipant in that dog show.

10


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107. (roy DesouLa was the Conser"ati"e andidate of reord for &s@uimalt Fuan de

$ua. In 2010! the ampaign Christmas party was sheduled for $riday Deember

10th. >eyond elebrating the holiday season! the seondary purpose of the e"ent

was to raise donations for Co9rell ouse! a shelter for homeless "eterans. 27 (hey

didn%t ha"e a spea9er and DesouLa testied that he let -the party 9now in an e6ort

to seure the attendane of a spea9er to the e"ent. 3n the onday or (uesday of

the wee9 before the e"ent he was surprised to learn that enator Du6y would be

oming to their e"ent. (he date is @uite important) on DesouLa%s e"idene! he

only learned of enator Du6y%s partiipation on Deember 4 thor 'th.

10E. (his aount orresponds with enator Du6y%s testimony! where he said that

an in@uiry about his attendane at the e"ent was made -probably on the onday.

10 De 2015! p.101.J enator Du6y answered follow up @uestions at p. 10' about

the date that the arrangements were made)

27 r. DesouLa didn%t 9now if any of the three residents of the Co9erell ouse

attended the Christmas party. (he party was held at the +oyalJ Colwood olf Club.


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110. Aording to his testimony! enator Du6y realled some disussion about his

attendane at the e"ent o"er the wee9end. It therefore seems settled in the

e"idene that the arrangement to go to the -Co9rell ouse e"ent were naliLed

on the onday! Deember 4th! 2010.

111. In light of the foregoing it is therefore signiant that enator Du6y boo9ed

the tra"el! for himself and his wife! to Sanou"er on (hursday! Deember 2nd ! 2010.

It is urious that he would ommit to tra"el to Sanou"er before ha"ing any

parliamentary funtion to attend.

112. (o determine the atual purpose of the trip it is neessary to onsider this@uestion) 8as there anything else happening in Sanou"er during that same time

period that ould ha"e prompted enator Du6y to ma9e those tra"el arrangements

on Deember 2ndO

11C around the time of the

birth of his hild were oinidental. e was as9ed if he had -any ad"ane notie

that she was going to go into labour that day. enator Du6y said -none

whatsoe"er. e must ha"e 9nown that the birth was imminentM on the day he

tra"elled to Sanou"er his daughter was eight days o"erdue.

11=. 3ne again enator Du6y%s diary re"eals its "alue. (he history of his

daughter iranda%s pregnany is tra9ed within its pages. 3n page 7= 21 ay

2010J! enator Du6y notes -iranda alls she%s e#peting in Deember. 3n page

104 14 3tober 2010J! enator Du6y has reorded) -iranda alls re baby gifts

et. 3n page 107 2' 3tober 2010J this notation appears) -iranda medial

update on baby. As mentioned before! there is a notation onerning the due date

on p.11=! 1 Deember 2010.


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115. Aording to my notes! (roy DesouLa testied that enator Du6y attended at

the Christmas party for =0 to =5 minutes. Aording to the diary entries onerning

the e"ening of the e"ent p.114J! enator Du6y ew in to Sitoria at -4pm and had

a return ight at E)00 pm.

114. (roy DesouLa said that enator Du6y told stories and :o9es and disussed

what was happening in 3ttawa.

11'. In his testimony! 10 Deember 2015! p. 10< enator Du6y desribed his

speeh as follows)

117. enator Du6y%s portrayal of the e"ent is inonsistent with (roy DesouLa%s

aount.

11E. (he ost of enator Du6y%s attendane at the Christmas party e#eeded

N10!000. e stayed for less than an hour. 3n the fae of it this tra"el was

-unreasonable and onse@uently not an appropriate ost to pass on to the enate

and onsidering the nature of the e"ent and enator Du6y%s ontribution! the tra"el!

on its fae! o6ends the -due eonomy re@uirement set out in the A+s.

120. 3f greater signiane for our purposes! it is lear from the e"idene that the

Conser"ati"e Christmas party! inluding as a seondary omponent a modest

fundraiser for Co9rell ouse! was anillary to the birth of enator Du6y%s grandson.

(he true purpose of the trip was to "isit with his daughter and his new grandson.(here is simply no other way to e#plain the se@uene of e"ents) he was being

updated with respet to his daughter%s pregnany! when she was a wee9 o"erdue

he arranged to y to Sanou"er where she li"ed ,not to Sanou"er Island where

Colwood >C is loated/. After ma9ing those tra"el arrangements! he aepted an

in"itation to a Christmas party. 3n all the e"idene! enator Du6y used the

Christmas party to slip an e#pense laim past enate nane. It per"erts the notion

of -inidental personal use to "iew the arrangement any other way. (he laim


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assoiated with the enator%s personal tra"el in onnetion with the birth of his

grandhild is a fraud upon the enate and a breah of the trust deposed in him in

onnetion with his publi responsibilities.


121. (he e#pense laim found at (ab 4 of hibit 4A shares many parallels with the

pre"ious >ritish Columbia trip disussed abo"e.

122. At issue is a lunh meeting that enator Du6y attended with P Andrew

a#ton Fr. and his father Andrew a#ton r. that too9 plae on Fanuary < rd! 2012 at

the +oyal Sanou"er Haht Club. (he signiane of this e"ent is that enator Du6y

relies on that single lunh to :ustify o"er N=000 in tra"el e#penses in onnetion

with his trip to Sanou"er from

merely -inidental personal use of enate resoures assoiated with enator

Du6y%s attendane at the lunh. 8hile the e#isting poliy framewor9 delared it to

be perfetly aeptable for a enator to reei"e some inidental personal ad"antage

in the ourse of disharging their parliamentary funtions! suh benet would

neessarily ha"e to be anillary to the predominant or main purpose for whih the

ost was inurred. *o other interpretation is possible without rendering the onept

of -inidental use meaningless. $or ease of on"eniene I reprodue the pro"ision

from the A+s , Di"


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Parliamentary eretary to the President of the (reasury >oard. r. a#ton Fr. has

an e#tensi"e ba9ground in ban9ing and nane. r. a#ton Fr. told us that

-enator Du6y wanted to ome and! and meet with business leaders in

Sanou"er.2E(here was some unertainty whether the lunh ould be arranged

-around the holidays. (he arrangements for the lunh on Fanuary C at that time the pipeline was @uite

an issuing in the forefront! and we were all well;a@uainted with what

goes on! and we%re all "ery interested in normal proeedings of e"ents

both pro"inially and federally! and it was a general disussion about

those matters.

1


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business and nane to introdue enator Du6y into a dialogue with a#ton Fr%s

friends.

1C politis and business. enator Du6y sent an email to *igel 8right ,not

to the inister of $inane of anyone else onneted with the budget./ (hen nothing

more ame of it.

1


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Argument

1


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ew to 3ttawa on Fuly Ethpermitting eather Du6y to attend two medial

appointments on Fuly 10th! 2012.

1==. elanie erer%s original impulse to desribe the tra"el as -edial

appointment with speialist in 3ttawa was the orret one. All e6orts thereafter to

assign some "estige of legitimay to the tra"el are in furtherane of the fraudassoiated with the laim.


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1=5. (he tra"el e#pense laim form ontained under (ab 7 relates to enator

Du6y%s trip from Charlottetown to 3ttawa for the purpose of deli"ering a paid

speeh to the >uilding 3wners and anager%s Assoiation of 3ttawa hereafter!

->3AJ.

1=4. Dean ara9asis testied at this trial. (hrough his testimony and the

douments led see hibit ureau

and the -sponsor ,>3A/ was signed ser"ing as an agreement that

the spea9er ,i9e Du6y/ would deli"er a one hour lunheon 9eynote on

8ednesday eptember 12th! 2012 at the 8estin hotel in 3ttawaMb. (he fee payable to the spea9er was N10!000M. (he ontrat ontemplated that >3A would pro"ide aommodation

,when re@uired by the spea9er/ in the form of a business hotel roomM

d. 8hile tra"el was to be arranged by the spea9ers bureau or thespea9er! the agreement ontained a term whih obliged the sponsor to

reimburse for airfare and ground transportation ost -from the

pea9er%s loation to the e"entMe. Despite the foregoing terms! r. ara9asis! listed as the ontat person

on the ontrat! testied that no ight or hotel osts were antiipated

in respet of enator Du6y%s appearane beause he was a -loal

personMf. (he in"oie dated 1E Fanuary 2012 speied a total ost of N11!


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1='. (he tra"el arrangements were made on the 24thof Fune 2012. enator Du6y

and his wife were boo9ed to y from Ca"endish to 3ttawa on the 11 thof eptember

2012! the day before the spea9ing engagement.1=7. (he arrangements for the return leg ,3ttawa to Charlottetown/ of the trip

were only boo9ed on = eptember 2012. 3ne they return to Ca"endish! the diary

shows that they soon thereafter made the return dri"e to 3ttawa by ar in ad"aneof the opening of the enate.

1=E. (he reason the tra"el was boo9ed was so enator Du6y ould ome ba9 to

3ttawa and gi"e the paid speeh that he had agreed to gi"e. 8hile he may "ery

well ha"e underta9en some additional ati"ities while in 3ttawa! e"en enate

related ati"ities! those were anillary to the real purpose of the trip) to ome ba9

to 3ttawa and gi"e the speeh at the 8estin otel.

150. In his testimony enator Du6y said that he met with his administrati"e

assistant to -e#eute enate business douments that he said ouldn%t be done

-on"eniently at a distane. In addition! enator Du6y said that he -was omingfor un (S ,there%s no diary entry reeting that/ and spo9e to a enate I.(.

speialist to address problems he was ha"ing with his >la9berry.

151. ?ogi and ommon sense ma9e it ob"ious that he did not boo9 the ight on

the 24thof Fune to tra"el to 3ttawa on the 11 thof eptember to sign some

douments! or ma9e a (S appearane or get his >la9berry #ed. (he enator%s

diary reets other tra"el from P&I to 3ttawa on the Ethof Fuly 2012 and on the 1Eth

of Fuly 2012. (he ight was arranged in onnetion with the paid speeh. *o other

onlusion is a"ailable on the e"idene.

152. It is ob"ious from Dean ara9asis% testimony that >3A had no intention ofpaying for the ight. (he e"idene is that enator Du6y ne"er made suh a

demand.

15


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155. enator Du6y says he spo9e to the >3A group as a enator. 3f ourse! he

is a enator. e was paid! howe"er! in his pri"ate apaity. (he tra"el e#pense

laim that he submitted


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ourt heard e"idene that the Appendi# did not reast enate poliy with respet to

tra"el e#penses! but odied praties that had been in e6et before 2012.

15E. (he point is that tra"el for funerals is prohibited e#ept in the ase of SIPs

and dignitaries. (hat was the ase before and after the introdution of the

enator%s (ra"el Poliy in Fune 2012.

140. Despite telling us that he s9immed all of the poliies that he reei"ed!

enator Du6y said that he was unaware of any restritions on the use of enate

resoures to attend funerals.


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ome >obby ?eClair

asilia

eets 8ayne ooper

(4=;2014

=

1=$eb

2012

DAH

(+IP

N17'5 -enatebusiness

ruial

meeting

e :ust leftCharlottetown < days

earlier ,he atually

"isited her on 11 $eb/M

diary shows D

monitoring ary

Cabe%s ondition.

he dies on the 12th

eeting Ceil Silliard

>oo9ed on 1< $eb.

142. In an apparent attempt to :ustify his tra"el to some of the funerals! enatorDu6y testied at length about the aomplishments and ba9ground of the

deeased persons. In the ase of Deblois! tewart and Doyle I propose to say

nothing more else. (here is nothing of an established personal onnetion between

those indi"iduals and enator Du6y and therefore nothing to gain by in"iting the

ourt to assess the "alue of their ontributions to their respeti"e ommunities.

14obby ?elair%s

funeral was -really about his meeting with 8ayne ooper.ob ?elair

dies is the entry found in enator Du6y%s diary on the 2' thof Fanuary 2012. (he

reords re"eal that enator Du6y boo9ed his tra"el the same day. urely he didn%t


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boo9 tra"el that day for the purpose of a relati"ely brief meeting with 8ayne ooper

at the olman rand otel on the


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1'0. (he allegations onerning the ontrats with erald Donohue ha"e "irtually

nothing to do with enate poliy.


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1'5. As an e#ample of the ease with whih legitimate ontrats ould be arranged

we ha"e the ase of &astern Consulting. (he douments pertaining to that ontrat

are found in hibit


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e#pressing his antiipated future plan to mo"e those funds to aple +idge edia


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ontrator is identied as -aple +idge edia In. represented by erald

Donohue.=0 (he desription of ser"ies is as follows)

-&ditorial ser"ies !

-8riting er"ies ,inluding speehes/ and

Pro:et on the aging of the Canadian Population

(he ma#imum amount of the ontrat was N1=!000! inlusi"e of (B(.

174. erald Donohue%s in"oie dated 2E arh 2010 was submitted to enator

Du6y. (he in"oie was in the amount of N1

in"oie "erifying the performane of wor9. (he he@ue issued in respet of this

in"oie bears a date of 1' April 2010 and an be found in hibit y orhestrating the payment of almost N1=!000 into the aount of aple

+idge edia! enator Du6y aomplished two things) ,i/ he artiially and

fraudulently inreased the amount of his oKe budgetM and ,ii/ he put publi fundsbeyond the sope of any super"ision by enate administration. As a pratial

matter erald Donohue e#erised omplete ontrol o"er the publi money that had

been deposited into the aple +idge media ban9 aount. enator Du6y e#erised

authority o"er the money ontained in the slush fund that he reated.

17E. (he following hart shows the payments that were made by aple +idge

edia and 3ttawa IC$ out of the slush fund)

=0 8e learned from the e"idene at the trial that erald Donohue had no legal

onnetion to aple +idge edia. (he arrangement was strutured that way

beause Donohue reei"ed a disability pension. (here is no e"idene that enator

Du6y was aware of this! so this fat only goes to Donohue%s redibility.


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1E0. *one of these reipients was e"er 9nown or 9nowable to members of enate

administration. $or these payments totalling o"er N


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1E2. Qndoubtedly! sensing the ine"itable depletion of the money in the aount!

e6orts wor9s were already underway to seure additional naning from the enate.

(he amended ontrat in respet of these e6orts is found in hibit 2

was signed on Deember 20th! 2010 by r. Donohue and on Deember 2< rd! 2010 by

a s. >ernier! representing the enate. (he notable hanges inluded an e#pansion

to erald Donohue%s -duties. $or this! see enator Du6y%s doument) -erald

Donohue Duties found in hibit 2

ma#imum amount of N1

1E


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1E7. oney was paid to Diane harf to o"er the ost of telephone ser"ies

beyond limits set out in the enate poliy. s. harf was told that enator Du6y

had e#hausted the allowable phone ser"ies for himself and his oKe. ore

importantly it was 9nown by enator Du6y. e had options) he ould apply to

Internal &onomy to see9 permission to e#eed the limits of the teleommuniations

poliy! or he ould ha"e paid the ost himself. Instead he eleted to -wor9 aroundthe problem by assigning the payment of those e#penses to erry Donohue.

1EE. (he payment to *ils ?ing is! perhaps! the learest e#ample of outright fraud

we heard about in the trial.

200. hibit E7 is the pea9er Payment +eord reeting the aused%s agreement

to gi"e a speeh at the Chateau ?aurier hotel on 8ednesday 3tober 20th! 2010.

(he sponsor was the Canadian $ederation of Agriulture. (he agreement

ontemplated a spea9er%s fee of N10!500.

201. It is absolutely lear from the email on the rst page of hibit E5 thatenator Du6y ommissioned *ils ?ing to write that speeh. In the email dated 10

3tober 2010 enator Du6y says)

I was blown away by the elo@uene of the speeh you wrote for Famie last

wee9. In fat I wonder if I ould hire you to write a short speeh for me on

the sub:et of Agriulture in Canada. I%m lling in for +e# urphy at the '5th

anni"ersary of the Cdn $ed of A. 3n 3t 20th. If you ould underta9e this

assignment ,ondential of ourse/V.

202. *ils ?ing wrote the speeh and sent it to enator Du6y on 8ednesday3tober 20th! 2010 at


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,-RTICU3-R DI#AUR#0/0NT#*1

Ashley Cain

20'. pea9er $urey testied that there is no mehanism authoriLing payments to

"olunteers. Despite the e#pliit prohibition on payment of ta#payer funds to o"er

gifts to sta6 or employees of the enate! enator Du6y arranged for a N500

payment to Ashley Cain! who had pre"iously wor9ed as a "olunteer in his oKe.

(he A+s prelude payments to "olunteers. 3nly a tortured reading of the

pro"isions allows any ontrary onlusion. enator Du6y was perfetly free to

bestow a gift upon s. Cain. >ut that would ha"e to ome from his money. is

deision to diret the payment of publi money to s. Cain from erald Donohue

dees ommon sense and is both a fraud and a breah of trust.

Fa@ueline ?ambert

=1 I will de"elop the submissions in respet of these ounts more fully during oral

argument.


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207. A N

Documents

R v Duffy - Crown submission for counts 1-28