East
08-13-2004, 04:28 AM
Ex-DND employee being sued over billing scandal
CTV.ca News Staff
Paul Champagne, an Ottawa man who claims his wealth comes from the stock market, is being sued by the federal government and Hewlett-Packard.
They allege the former Department of National Defence employee stole over $100 million of taxpayers' money and they want to recover some of it.
Champagne didn't answer the door bell Wednesday at his Ottawa estate or return calls from CTV News at his Turks and Caicos Islands estate. But previously he denied any wrongdoing.
"When this came out and there's no substantiation, they said, 'someone's a crook so let's go after the rich guy.' You feel like a scapegoat," he said in a telephone interview with CTV News broadcast March 13.
But the fact remains that Champagne's signature appears on cheques he personally received from military computer sub-contractors. CTV saw one such cheque that was for $95,000.
"He was telling people the contracts were all top secret military work so no one really knew what was going on except Paul Champagne," said investigative journalist Andrew McIntosh of the National Post.
In court documents, the government and Hewlett-Packard allege that over a 10-year period, Champagne stole over $100 million using a phony invoice scheme.
"We're stunned too," said Maj.-Gen. Terry Hearn of DND, adding the military is hoping to recover the missing money.
"We're responsible for the money of the public and we take it very seriously," he said.
For its part, Hewlett-Packard, which had the overall computer maintenance contract, said it was duped into believing the invoices were legitimate.
"It's probably the only customer that could ever say you don't have the right to know or audit that information or have access to that information for reasons of national security," said Rob Ireland, a company spokesman.
Gordon O'Connor, a former general and now the defence critic for the Conservative Party, says there are wide-ranging problems in the department's audit system.
"I find it outrageous that $150 million has been paid out by the Defence Department for no service and this is over 10 years it brings into question the whole checks and balances within the department," he said.
Besides the lawsuit, the RCMP is conducting a criminal investigation. Sources say the Mounties have been seen in the Turks and Caicos Islands in the Caribbean. Measures are being taken to try and freeze Champagne's assets there.
With a report from CTV's Craig Oliver
Link: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1092272960225_36
CTV.ca News Staff
Paul Champagne, an Ottawa man who claims his wealth comes from the stock market, is being sued by the federal government and Hewlett-Packard.
They allege the former Department of National Defence employee stole over $100 million of taxpayers' money and they want to recover some of it.
Champagne didn't answer the door bell Wednesday at his Ottawa estate or return calls from CTV News at his Turks and Caicos Islands estate. But previously he denied any wrongdoing.
"When this came out and there's no substantiation, they said, 'someone's a crook so let's go after the rich guy.' You feel like a scapegoat," he said in a telephone interview with CTV News broadcast March 13.
But the fact remains that Champagne's signature appears on cheques he personally received from military computer sub-contractors. CTV saw one such cheque that was for $95,000.
"He was telling people the contracts were all top secret military work so no one really knew what was going on except Paul Champagne," said investigative journalist Andrew McIntosh of the National Post.
In court documents, the government and Hewlett-Packard allege that over a 10-year period, Champagne stole over $100 million using a phony invoice scheme.
"We're stunned too," said Maj.-Gen. Terry Hearn of DND, adding the military is hoping to recover the missing money.
"We're responsible for the money of the public and we take it very seriously," he said.
For its part, Hewlett-Packard, which had the overall computer maintenance contract, said it was duped into believing the invoices were legitimate.
"It's probably the only customer that could ever say you don't have the right to know or audit that information or have access to that information for reasons of national security," said Rob Ireland, a company spokesman.
Gordon O'Connor, a former general and now the defence critic for the Conservative Party, says there are wide-ranging problems in the department's audit system.
"I find it outrageous that $150 million has been paid out by the Defence Department for no service and this is over 10 years it brings into question the whole checks and balances within the department," he said.
Besides the lawsuit, the RCMP is conducting a criminal investigation. Sources say the Mounties have been seen in the Turks and Caicos Islands in the Caribbean. Measures are being taken to try and freeze Champagne's assets there.
With a report from CTV's Craig Oliver
Link: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1092272960225_36