Minutes

Compliance Audit Committee

Meeting No.:: 14
Contact:: Kelly McCarthy, Committee Administrator
Meeting Date:: Tuesday, July 30, 2013; Friday, August 9, 2013
Phone:: 416-397-7796
Start Time:: 9:30 AM
E-mail:: kmccart3@toronto.ca
Location:: Committee Room 1, City Hall
Chair:: Douglas Colbourne

EA14.1 - Compliance Audit Report for the City of Toronto Re: Peter Li Preti

Decision Type:: ACTION

Status:: Amended

Statutory - Municipal Elections Act, SO 1996

Committee Decision

The Compliance Audit Committee:

1. Commenced legal proceedings against Peter Li Preti for the apparent contraventions of the Municipal Elections Act outlined in the auditor's report.

2. Directed the City Clerk to work with the appropriate City staff and counsel to implement this decision.

3. Directed the City Solicitor, should she deem it appropriate, to retain external legal counsel for the purpose of the legal proceeding, with the counsel to have all of the usual power and authority of a prosecutor.

Decision Advice and Other Information

On July 30, 2013, the Compliance Audit Committee recessed its public session to meet in closed session to consider the item as it relates to advice that is subject to solicitor-client privilege.

The Compliance Audit Committee started but did not complete item EX14.1 Compliance Audit Report for the City of Toronto Re: Peter Li Preti at the portion of its meeting held on July 30, 2013. It recessed its meeting until Friday, August 9, 2013 at 9:30 a.m., when it resumed consideration of this item.

On August 9, 2013, Bruce Armstrong, Managing Director, FCA, CFE, Froese Forensic Partners Ltd., gave a presentation to the Compliance Audit Committee on the Compliance Audit Report for the City of Toronto Re: Peter Li Preti.

Origin

(July 10, 2013) Report from Froese Forensic Partners Ltd.

Summary

Final Compliance Audit Report dated July 10, 2013 from Froese Forensic Partners Ltd. for the Candidate Peter Li Preti.

Background Information

(July 10, 2013) Report from Froese Forensic Partners Ltd. on Compliance Audit Report for the City of Toronto Re: Peter Li Preti
https://www.toronto.ca/legdocs/mmis/2013/ea/bgrd/backgroundfile-60230.pdf
(July 25, 2013) Addendum 1 to the Compliance Audit Report for the City of Toronto Re: Peter Li Preti
https://www.toronto.ca/legdocs/mmis/2013/ea/bgrd/backgroundfile-60446.pdf
(July 29, 2013) Addendum 2 to the Compliance Audit Report for the City of Toronto Re: Peter Li Preti
https://www.toronto.ca/legdocs/mmis/2013/ea/bgrd/backgroundfile-60447.pdf
(July 30, 2013) Presentation from Bruce Armstrong, Froese Forensic Partners Ltd. titled "City of Toronto - Compliance Audit Report Re: Peter Li Preti"
https://www.toronto.ca/legdocs/mmis/2013/ea/bgrd/backgroundfile-60560.pdf

Communications

(July 15, 2013) Letter from Howard Moscoe (EA.Supp.EA14.1.1)
(July 25, 2013) Submission from Paul-Erik Veel, Lenczner Slaght (EA.New.EA14.1.2)
(July 26, 2013) Fax from Paul DioGuardi Q.C., DioGuardi Tax Law (EA.New.EA14.1.3)
(July 26, 2013) Submission from Arie Gaertner, Gaertner Baron LLP, Barristers and Solicitors (EA.New.EA14.1.4)
(July 29, 2013) Submission from Arie Gaertner, Gaertner Baron LLP, Barristers and Solicitors (EA.New.EA14.1.5)
(August 6, 2013) Submission from Arie Gaertner, Gaertner Baron LLP, Barristers and Solicitors - Amended submissions and supplementary briefs of authorities (EA.New.EA14.1.6)
(August 7, 2013) Submission from Paul-Erik Veel, Lenczner Slaght Royce Smith Griffin LLP - Reply submissions of the applicants (EA.New.EA14.1.7)

Speakers

(July 30, 2013) Paul-Erik Veel, on behalf of Adam Chaleff-Freudenthaler and Howard Moscoe, Lenczner Slaght Royce Smith Griffin LLP (Submission Filed)
(July 30, 2013) Arie Gaertner, on behalf of Peter Li Preti, Gaertner Baron LLP, Barristers and Solicitors (Submission Filed)
(August 9, 2013) Paul-Erik Veel, on behalf of Adam Chaleff-Freudenthaler and Howard Moscoe, Lenczner Slaght Royce Smith Griffin LLP (Submission Filed)
(August 9, 2013) Arie Gaertner, on behalf of Peter Li Preti, Gaertner Baron LLP, Barristers and Solicitors (Submission Filed)

Motions

1 - Motion to Meet in Closed Session moved by Virginia MacLean seconded by John Hollins (Carried)

July 30, 2013 - That the Committee recess its public session to meet in closed session to consider Item EA14.1 Compliance Audit Report for the City of Toronto Re: Peter Li Preti as it relates to advice that is subject to solicitor-client privilege.

2 - Motion to Amend Item moved by Virginia MacLean seconded by John Hollins (Carried)

August 9, 2013 - That the Compliance Audit Committee:

1. Commence legal proceedings against Peter Li Preti for all of the apparent contraventions of the Municipal Elections Act outlined in the auditor's report.

2. Direct the City Clerk to work with the appropriate City staff and counsel to implement this decision.

3. Direct the City Solicitor, should she deem it appropriate, to retain external legal counsel for the purpose of the legal proceeding, with the counsel to have all of the usual power and authority of a prosecutor.

EA14.2 - Update on Compliance Audit Costs Arising from the 2010 Municipal Election

Decision Type:: ACTION

Status:: Adopted

Committee Decision

The Compliance Audit Committee received the report (July 17, 2013) from the City Clerk, for information.

Decision Advice and Other Information

The Compliance Audit Committee considered this item at the portion of its meeting on July 30, 2013.

Origin

(July 17, 2013) Report from the City Clerk

Summary

The purpose of this report is to update the Compliance Audit Committee (Committee) on the costs incurred to date to conduct the seven compliance audits ordered by the Committee for the 2010 municipal election.

Background Information

(July 17, 2013) Report from the City Clerk on Update on Compliance Audit Costs Arising from the 2010 Municipal Election
https://www.toronto.ca/legdocs/mmis/2013/ea/bgrd/backgroundfile-60321.pdf

Motions

Motion to Adopt Item moved by John Hollins seconded by Virginia MacLean (Carried)

Procedural Motions

1 - Motion to Adopt Minutes moved by John Hollins (Carried)

July 30, 2013 - That the Minutes of the Compliance Audit Committee meeting held on February 25, 2013, be confirmed.

2 - Motion to Recess moved by Virginia MacLean (Carried)

July 30, 2013 - That the meeting be recessed until Friday, August 9, 2013 at 9:30 a.m.

3 - Motion to Adjourn moved by John Hollins (Carried)

August 9, 2013 - That meeting 14 of the Compliance Audit Committee be adjourned.

Friday, August 9, 2013

Meeting Sessions

Session Date	Session Type	Start Time	End Time	Public or Closed Session
2013-07-30	Morning	9:30 AM	9:44 AM	Public
2013-07-30	Morning	9:45 AM	9:58 AM	Closed
2013-07-30	Morning	10:02 AM	10:03 AM	Public
2013-08-09	Morning	9:30 AM	10:37 AM	Public

Attendance

Members were present for some or all of the time period indicated.

Date and Time	Quorum	Members
2013-07-30 9:30 AM - 9:44 AM (Public Session)	Present	Present: Douglas Colbourne (Chair), John Hollins, Virginia MacLean
2013-07-30 9:45 AM - 9:58 AM (Closed Session)	Present	Present: Douglas Colbourne (Chair), John Hollins, Virginia MacLean
2013-07-30 10:02 AM - 10:03 AM (Public Session)	Present	Present: Douglas Colbourne (Chair), John Hollins, Virginia MacLean
2013-08-09 9:30 AM - 10:37 AM (Public Session)	Present	Present: Douglas Colbourne (Chair), John Hollins, Virginia MacLean