An investigation dubbed Project “Coche” conducted by the Royal Canadian Mounted Police Commercial Crime Section, Anti-Corruption Unit resulted today in the laying of twelve counts of indictment, including for corruption and fraud, against three former Revenue Canada Agency officials. The accused allegedly attempted to extort money from restaurant owners in exchange for lower income tax assessments.
The RCMP investigation into these allegations of corruption within the Canada Revenue Agency was initiated in 2008 and is still ongoing. More charges could be laid in this matter.
Francesco Fazio, a former tax auditor, was discharged in 2011 during the RCMP investigation, which shows that between July and October 2005, he allegedly offered a restaurant owner to lower his upcoming tax notice in exchange for $90,000. Mr. Fazio’s offer was turned down by the restaurant owner.
Elias Kawkab was also discharged in 2011 from his duties as team leader. The investigation shows that, between June 2007 and August 2008, he allegedly received $100,000 in bribes from a Montréal restaurant owner on an agreement that he would erase unreported income.
Luigi Falcone resigned as tax auditor in 2009. The investigation shows that, in 2006, Luigi Falcone allegedly offered a Montréal restaurant owner to lower a bogus tax notice, before even auditing his financial statements, in exchange for $50,000. The restaurant owner refused to pay the bribe.