Crown, Caspian don't want documents seized in fraud investigation turned over to Canada Post

A judge won't hear arguments until later this year about whether Canada Post should be allowed to access documents currently in the RCMP's possession.

The documents in question are part of a fraud investigation into the construction of the Canada Post mail sorting facility. 

The case was scheduled to appear in the Manitoba Court of Queen's Bench Friday, but was adjourned until December after the judge was told a number of the parties involved planned to oppose the motion.

The attorney general of Canada, the attorney general of Manitoba and Caspian Construction — one of two companies that designed and built the Winnipeg Main Processing Plant — will fight the Crown corporation's application to access the documents, said Bob Sokalski, Canada Post's lawyer.

Seized during Canada Post building, police HQ investigation

The documents were seized by the RCMP in a number of search warrants and production orders as part of a criminal investigation into allegations of fraud during the construction of the Canada Post mail sorting facility — which opened near the James Richardson International Airport in 2010 — and the Winnipeg police headquarters building, which opened last June, four years behind schedule and millions of dollars over budget.

Both projects were built by Winnipeg contractor Caspian Construction.

Last month, Canada Post asked the court to grant access to those documents, even though the Mounties are not yet finished their investigation.

Sokalski appeared before a judge Friday morning and said he initially wanted the case heard right away, for fear the documents would be returned to Caspian and become out of reach for his clients — something he said he's been assured won't happen.

"I said, 'Well, I lose status if, and when, or should any of those documents be returned to Caspian,'" Sokalski told the court.

"Then [the Crown attorney] said, 'Well, Mr. Sokalski I assure you none of those documents are going back.'"

Sokalski said the Crown attorney had suggested a December hearing date to give her time to review the materials in the case.

"[Canada Post Corporation] has a bona fide legal interest in the product of the search undertaken by the RCMP and requires access to the documents obtained by the RCMP … for the purpose of assessing and potentially pursuing the legal rights of CPC," Sokalski wrote in a motions brief submitted to the judge.

Court of Queen's Bench Justice James Edmond read the brief prior to the hearing, but may not be the judge who ultimately hears the case.

"Interesting case where, on the face of it, I certainly do not disagree that Canada Post is entitled to documents," said Justice Edmond.

"But it's a delicate balancing issue that you have to be considerate, in terms of when a matter is under investigation and documents have been seized pursuant to warrants." 

Fraud found in documents, say RCMP

Canada Post's motion states affidavits filed by the RCMP during the criminal investigation "contain sworn evidence that an obvious fraud has been committed," and clearly demonstrate the Crown corporation's legal interest in the documents.

"Canada Post has an interest in the subject documents and seeks access for the purpose of assessing and potentially pursuing its legal rights arising from documents that demonstrate an obvious fraud according to the RCMP," Sokalski wrote in the August application.

The Crown corporation's motion appears to rely heavily on affidavits filed by the RCMP working on the investigation, including a quote from Const. Marc Paul Allard in a 2015 court document.

"The seized documents demonstrate an obvious fraud, and include invoices that are clearly identified as being the 'actual' invoices, or as being the 'inflated' invoices that were submitted for payment on the project,"  Const. Allard wrote in a 2015 affidavit.

"CSC [the RCMP commercial crime section] believes the fraud committed by Caspian on this project may be in the millions of dollars, and may involve several contractors that are also employed by the WPSH [Winnipeg Police Service headquarters] project."

A December court date has not yet been finalized for the Canada Post application hearing.

No charges have been laid in the RCMP investigation. Last week, the Mounties said their case was nearly complete and that they will be seeking charges against several people in connection with the construction of the Winnipeg police headquarters building and the Canada Post Mail Processing Plant.

But last Friday, the RCMP softened their statement and cautioned their position could change by the time the police probe is complete.