'Looks like a fraud, walks like a fraud': Canada Post lawyer argues for access to Caspian documents

There's evidence of fraud in sworn affidavits and documents the RCMPfiled as part of their criminal investigation into the construction of the Winnipeg police headquarters and the Canada Post mail processing plant, Canada Post's lawyer told a judge Tuesday morning.

Canada Post is fighting in courtfor the right to view and analyze documents seized by the RCMP in their three-year fraud investigationinto the two multimillion-dollar projects built by Caspian Construction and Caspian Projects, two companies owned by Winnipeg contractor Armik Babakhanians.

"There's no doubt that the documents that have been seized demonstrate a concern or effect on my client,"said Bob Sokalski, Canada Post's lawyer."They're looking to see what these documents may reveal."

• Crown, Caspian don't want documents seized in fraud investigation turned over to Canada Post
• Fraud found in Caspian construction of Winnipeg mail plant, say court documents

The Crown corporation specificallywants access totwo binders theRCMPobtained from asearch of Caspian's head office in 2014and eightfile storage boxespolice seized from a Caspian warehouse last summer,which Canada Post believeswill provide evidence of fraud, Sokalski said.

"The best evidence before you is eyewitness accounts of RCMP examining documents," Sokalskiargued.

Canada Post lawyer argues for access to Caspian documents

7 years ago

Duration 2:18

There's evidence of fraud in sworn affidavits and documents the RCMP filed as part of their criminal investigation into the construction of the Winnipeg police headquarters and the Canada Post mail processing plant, Canada Post's lawyer told a judge Tuesday morning.

He went on to read from sworn affidavits andInformation to Obtain a Search Warrantdocuments the Mounties presented to a judge, detailing their case in order to get authorizations for search warrants.

In those court documents, the RCMPalleged Caspian owner Armik Babakhanians and Caspian employeePam Anderson defrauded Canada Post by submitting inflated invoices and false change-order and cost-breakdown sheets during the 2008-12 construction period.

Invoice binders marked 'true,' 'inflated'

The Mounties pointed to specific evidence to support those claims,includingtwo binders containing mail-sorting-plantinvoices marked "true" and "inflated," the police affidavits said.

"No one from Caspian has stood up and said that's not what the documents say. I have an explanation as to what 'true,' 'actual' and 'inflated' mean," Sokalskisaid.

"Justice Bond, you can look at that and say,'Hmm looks like a fraud, walks like a fraud; maybe it is a fraud.'"

Canada Post is a public institution and it is in the public interest to investigate the possible fraud and take civil action, he said.

Canada Post fears if it is not given access to those documents now, it will never get to see them, he said.

"Caspian hasn't taken an oath to say they'll get the documents back from the Crown and don't worry, they'll be here waiting for you," Sokalski said."If that documentation gets back into the hands of the people who wrote 'true' and 'inflated,' there's no guarantee it will be there when released from the secure hands of the RCMP."

Caspian, the Crown and the RCMP all oppose disclosureof the documents.

Senior Crown attorney TerryMcCombtold the court she fears sharing the documents with Canada Post could compromise the investigation, which is not yet complete.

"The Crown has received some of the evidence. The Crown has not received all of the evidence," said McComb, adding the Crown is still reviewing the files and deciding whether or not charges should be laid.

"The Crown is concerned this could make a fair trial unattainable."

Sokalski said before Canada Post files anydocuments in a civil suitthat may contain details not yet made public, it will contact the attorneys generalof Manitoba and Canada to askwhether either department has concerns about the disclosure.

If they do, but those details are necessary for thecivil suit, Canada Post will head right back to courtand seek direction in the matter, Sokalski said.

"Canada Post wants you to know they are very, very respectful of the criminal justice process."

His client won't do anything to compromise the Crown's case, he said.

Crown attorney DenisGunetteexpressed concern about the implications of Canada Post's court fight on prosecution resources.

"This will,even on this case, divert resources from what prosecutors should be doing, which is prosecute a case. It's diverting efforts. It's deflecting efforts for a civil purpose."

Caspian's lawyerswill present their caseopposing the release of the documents in court on Wednesday morning.

None of the allegations have been proven in court and no charges have been laid in connection with the investigations.

Babakhaniansdid not respond to a request for comment.