VAUGHAN CITIZEN EXCLUSIVE: Cops target Di Biase

YorkRegion.com
April 30, 2015
Jeremy Grimaldi and Adam Martin-Robbins

Vaughan Deputy Mayor Michael Di Biase is the focus of a police probe, The Citizen has learned.

York Regional Police’s major fraud unit, in partnership with the OPP, is investigating the role Di Biase might have played in a number of city contracts over the years, police sources say.

Investigators are digging into city contracts signed during Di Biase’s 24 years in office, including his time in the mayor’s chair from 2002 to 2006 and, more recently, while a local and regional councillor.

Officers are also looking into any role he might have played in the city’s tendering process to secure municipal contracts for companies, including Maystar General Contractors, the firm that built Vaughan city hall, a source said.

When reached Wednesday afternoon for comment, Di Biase said: “I am not even sure that there’s truth to this. It’s news to me. You’re telling me this for the first time,” he noted in reference to any police investigation.

His lawyer, Morris Manning, also said he “knows nothing about a police investigation” into his client.

“They (police) haven’t contacted me,” he said Wednesday morning.

Maystar President Joe Maio has yet to respond to a request for comment.

York Regional Police on Tuesday released the following statement:

“In relation to your request regarding Mr. Di Biase,” it said. “We have received a complaint related to the Integrity Commissioner’s report. We are following up with the Integrity Commissioner to determine if any of the allegations warrant a criminal investigation.”

CBC investigation

 In all, Maystar has secured more than $100 million worth of Vaughan city contracts since 2002.

Di Biase was the subject of a CBC investigative piece late last year about his relationship with Maystar.  

In a story published just before the October 2014 municipal election, Richard Lorello, a city hall watcher and Di Biase’s political rival, alleged Maystar was helping build Di Biase’s family cottage on Orr Lake in Elmvale.

Di Biase and Maio have both denied the allegations in the CBC story.

Meanwhile, news of the now-underway police investigation comes hot on the heels of a council decision to dock Di Biase’s pay for 90-days after the city ethics boss found he violated Vaughan’s code of conduct.

That decision was made last week at a council meeting where two plainclothes officers were spotted by media.

Integrity Commissioner Suzanne Craig began probing Di Biase’s behaviour last December after Lorello filed a complaint.

Lorello asked the integrity commissioner to investigate four matters including his allegations that Maystar was helping build Di Biase’s cottage in exchange for the veteran politician’s help in landing municipal contracts for the company.

Craig said that appeared to be of “a criminal nature” and beyond her jurisdiction to investigate.

She advised Lorello if he wanted to pursue the matter he should take it to the police.

Craig also determined that another issue raised by Lorello happened too long ago for her to investigate under the city’s code of conduct complaint rules, which has a six-month limitation.

City report focused on contracts

 She did, however, investigate allegations Di Biase interfered in various tendering processes and that he inappropriately pressured staff in an effort to secure business for Maystar.

Craig did not investigate the company and there’s nothing in her report to suggest Maystar did anything wrong.

Craig’s probe focused on contracts for the Father Ermanno Bulfon Community Centre in Woodbridge, and the Civic Centre Resource Library (CCRL) where Maystar did not pre-qualify for construction contracts.

Craig found Maystar complained to the city that it should be pre-qualified because “it has always prequalified . . . and they make donations to Vaughan charities”.

During her four-month long investigation, Craig interviewed 32 city staffers and members of the library board, on which Di Biase sat.

Craig reported that one staff member told her: “I was approached by regional councillor Di Biase at (a meeting) and he asked me about the CCRL. When I told (Di Biase) there was a procurement process that had to be followed, he told me to stop wasting time and don’t be a trouble maker and cause problems.”

Another staff person relayed his experience to Craig: “Tell your boss, when I call, respond to your ---ing phone.”

Through a review of emails between Di Biase, city staff and his fellow councillors, Craig also found that an unidentified “outside person” was crafting email responses for Di Biase.

“The actions of the Respondent have left the City open to public criticism and questioning of ethics in procurement on the one end of the spectrum, and financial liability on the other,” Craig concluded.  

Thornhill Councillor Alan Shefman, reacting to the integrity commissioner’s findings last week, called Di Biase’s behaviour “serious and inexcusable”.

“As a proud member of this council, I am saddened, even angry, that these actions have damaged the reputation of this body and this city,” he said before the 8-0 vote to suspend Di Biase’s pay.

That decision will cost Di Biase about $21,000 unless he is able to get it overturned.

Di Biase and his lawyer have both repeatedly challenged the integrity commissioner’s findings.

The veteran councillor is still considering asking a court to quash the integrity commissioner’s report and the penalty imposed by council, he confirmed via email Wednesday.

The police investigation could also become a political hot potato considering Di Biase is a former member of the Police Services Board and a regional councillor, who votes annually on the police budget.