Former Calgary city councillor Joe Magliocca guilty of fraud for falsifying expense claims

CBC

27-01-2025

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Former Calgary city councillor Joe Magliocca has been found guilty of fraud for lying on his expense claims.
Magliocca was acquitted on the charge of breach of trust.
In the decision issued Monday, Justice Gord Wong also issued a scathing review of sole defence witness Sean Chu's evidence, calling the Ward 4 councillor the "polar opposite" of a credible witness.
Wong ruled that Magliocca added the names of various politicians to receipts, falsely claiming to have dined with them so he could submit expenses to cover the cost of food and alcohol.
"This was not simply a mistake or error," said Wong.
The judge found the former Ward 2 councillor "knowingly provided false information in expense claims and knew he stood to benefit."
A sentencing hearing will take place in May.
Appeal planned, says defence
After the verdict, defence lawyer Aryan Sadat said he plans to "immediately" begin work on an appeal.
"This was not a decision that we were expecting," said Sadat. "I do have instructions that we will be appealing this decision."
In acquitting Magliocca of the breach of trust charge, Wong noted the offence must be associated with duties of the accused's office.
"The fraud itself does not involve his position or powers," said Wong. "He did not use his position as councillor for a nefarious purpose."
Magliocca was charged on Oct. 8, 2021 — 10 days before he lost his bid for a third term as Ward 2 councillor in Calgary's civic election.
The judge's decision follows a two-week trial last September.
Politician witnesses
Court heard evidence that between 2017 and 2019, Magliocca attended several meetings as part of the Federation of Canadian Municipalities (FCM) conferences. He also attended the Carnaval de Québec.
At the time, Magliocca was the City of Calgary's FCM representative.
Prosecutor Aaron Rankin called about two dozen current and former politicians to testify, including Halifax Mayor Mike Savage, Ontario Liberal Leader Bonnie Crombie, Quebec cabinet minister Jonatan Julien, former Edmonton Mayor Don Iveson as well as city councillors from PEI, Toronto, Ottawa, Quebec City and Petite Riviere, Que.
The Crown's witnesses each appeared in Magliocca's expense claims as having been "hosted" by him (the requirement for reimbursement) with food and alcohol during his travels.
All but one of the witnesses testified they never dined with Magliocca.
Chu 'evasive and defensive'
Some had never met the then-councillor, some had simply exchanged business cards with him.
Chu, the sole defence witness, testified he saw problematic spending by city councillors but never with his friend Magliocca.
Wong described Chu as "evasive and defensive" and said he made an "attempt to mislead the court."
"[It was] clear to me he had an agenda other than testifying openly and truthfully," said Wong.
"I have no hesitation when coming to the conclusion that his evidence cannot be accepted."
Audit, police investigation
On top of the alleged hosting frauds, Wong found that Magliocca also falsified a receipt related to a hotel expense claim.
At the end of a Halifax conference, Magliocca checked out his hotel but then checked into a more expensive hotel for two more nights.
On his expense claim, Magliocca detailed that the stay was for "FCM director debriefing" when, in fact, there was no debriefing.
An audit and subsequent police investigation were triggered after reporting in 2020 by the Calgary Herald showed Magliocca's expensed about double what other councillors claimed for their trips to the FCM conference in Quebec City.
The report found Magliocca improperly claimed $5,657 in expenses. It raised questions about another $10,000.
Magliocca has repaid some of that money.