RCMP investigation alleges millions in construction fraud, bribes

Supported By:

Net Patrol International Inc.  Data Investigation and Forensic Services
Bankruptcy and Insolvency Trustees

The RCMP have been tight lipped about their lengthy ongoing investigation into Caspian Construction, a Winnipeg-based contractor that was tasked with building Winnipeg’s police headquarters. But production order requests filed in court requesting further access to financial records have begun to reveal some of the allegations investigators are building a case around.

Multimillion-dollar fraud investigation

The RCMP has dubbed the multimillion-dollar fraud investigation Project Dalton. So far, investigators are alleging Caspian owner Armik Babakhanians, principal engineer with AAR Peter Chang and associate at GRC Architects Patrick Dubuc conspired to give $600,000 to a city project manager in exchange for influence in the awarding of contracts. Babakhanians is also accused of defrauding the city of more than $5,000. 

Specifically, court documents obtained by The Journal of Commerce show that police allege they have evidence Babakhanians may have used inflated and altered subtrade invoices and quotes to defraud the city of millions of dollars for work that was done at costs less than his fraudulent submitted costs. No charges have been formally filed.

Read more at The Journal of Commerce.

This article is summarized by Canadian Fraud News Inc.