Five contractors in Brandon have each been charged with conspiracy in relation to social housing projects.
The Competition Bureau announced on Monday that the Public Prosecutions Service of Canada filed a preferred indictment against Geoff Gregoire, Guy Pringle, James Kauk, Ryan Lamont, and Doug Gunnarson. They are each charged with conspiracy to commit fraud over $5-thousand and conspiracy to allocate contracts.
Allegedly, the individuals manipulated at least 89 contracts for refurbishment services for social housing units, awarded by the Manitoba Housing and Renewal Corporation, by dividing up them up among themselves.
These contracts were valued at approximately $4.5-million and this allegedly occurred between December 2011 and February 2016.
The Competition Bureau was assisted by the Manitoba Housing and Renewal Corporation, and the Brandon Police Service during the course of its investigation.
“Manipulating contracts to suppress competition is a serious crime. It results in higher costs for construction projects and is especially concerning when it comes to affordable housing. Cracking down on cartels is a top priority for the Competition Bureau, and we are determined to pursue all those who collude to increase their profits by defrauding public funds.” said Competition Bureau Commissioner Matthew Boswell in a news release.
The Bureau notes “individuals convicted of price-fixing, allocating markets or restricting supply (also known as conspiracy) may receive fines up to $25-million and/or be sentenced to a jail term of up to 14 years.”