City of Ottawa employee, landlord charged in alleged ‘kickback scheme'
A former City of Ottawa case worker and a landlord are facing charges in connection to an alleged kickback scheme involving a housing allowance program, according to police.
Auditor General Nathalie Gougeon released details of a fraud investigation in December 2024, called 'allegations of a kickback scheme.'
The Ottawa Police Service's Organized Fraud Section launched an extensive investigation following a review of the documentation provided by the Auditor General.
On Tuesday, police announced a former City of Ottawa case worker is facing charges of beach of trust, municipal employee receiving a bribe and fraud over $5,000.
A landlord is facing charges of bribing a municipal employee and joint charges for breach of trust and fraud over $5,000.
Police did not release the name of the former city employee or the landlord.
Gougeon said in December that the city's Fraud and Waste Hotline received a tip alleging a city employee was 'receiving kickbacks from a group of landlords participating in housing benefit programs administered by the city.'
'The investigation revealed that the City of Ottawa employee received over $22,000 in payments from a landlord for services they provided as part of their employment with the City,' the auditor general said in a statement on her website. 'The Auditor General concluded that these actions, as well as additional issues observed during the course of the investigation, represented breaches of the City of Ottawa's Code of Conduct.'
Gougeon told the Audit Committee that the kickback payments began in January 2024, 'although the landlords received more favourable rental rates starting in approximately October 2023.'
According to the Auditor General's report, rents were as much as 63 per cent above the average market rate for their respective areas.
'We observed multiple instances where Employee A assisted housing clients into entering lease agreement which significantly exceeded the average market rent for the area,' Gougeon told the Audit Committee on December 2. 'We observed evidence that would support Employee A's involvement in the determination of the rental amounts.'
City staff told the Audit Committee in December that an employee was fired and a second employee resigned following the Auditor General's investigation.
Mayor Mark Sutcliffe said he was glad to see this type of allegation is being taken seriously.
'Whenever there is an allegation of this kind, it needs to be taken seriously, and I'm encouraged by the fact that the processes is being followed and these allegations are being taken seriously,' Sutcliffe told reporters Tuesday afternoon.
'That's why we have a fraud and waste hotline, so that information like this can be brought to the attention of the authorities.'
With files from CTV News Ottawa's Ted Raymond
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