Friday, December 11, 2009

Ontario Realty Corporation

You can't squeeze blood from a stone, but if you squeeze hard enough you'll hurt your own hand.

Government fails to recoup millions spent on fees

http://www.thestar.com/mobile/business/article/737452--government-fails-to-recoup-millions-spent-on-fees

December 11, 2009

Tony Van Alphen      
Business Reporter     

The Ontario government will fall short again by millions of dollars in its efforts to recover money from a controversial corruption case involving its real estate arm, which cost taxpayers about $23.3 million in legal and consultant fees.

The province had expected to recoup several million dollars in fees from defendants to mitigate some of the heavy spending in the civil case but a judge has ordered them to pay only about $680,000.

The decision by Justice Frank Newbould this week bumps up the amount that the government can gain in costs and its partial victory at trial to almost $6.2 million in the nine-year-old case over allegations of bid rigging, breach of trust, fraud and kickbacks at Ontario Realty Corp.

Newbould of the Ontario Superior Court of Justice had ruled earlier this year that a Vaughan contractor and two partners are liable for about $5.5 million including interest.

The overall amount is substantially below the $23,324,292.65 that the government spent on legal counsel, consultants and experts in the civil case.
James Morton
1100-5255 Yonge Street
Toronto, Ontario
M2N 6P4

416 225 2777

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