LCBO sues former staff for $2M for alleged fraud scheme
<http://news.nationalpost.com/author/meganotoole/> Description: http://www.gravatar.com/avatar/35d17726a322bae63816ef79849e6ef9?s=34&d=mm <http://license.icopyright.net:80/rights/oneButtonTag.act?tag=3.11150?icx_id =160053> <http://license.icopyright.net:80/rights/oneButtonTag.act?tag=3.11150?icx_id =160053> Republish Reprint The Liquor Control Board of Ontario has launched a $2-million lawsuit against a former employee, claiming he targeted the provincial alcohol retailer in a long-running theft and fraud scheme. Francois Agostini allegedly worked with a small ring of accomplices to divert funds and liquor while heading up the LCBOs diplomatic sales program, which allows diplomats to save up to 40% in taxes and duties. The ring allegedly continued unchecked for years until Mr. Agostinis dismissal in January. The lawsuit claims that Mr. Agostinis friend, bouncy-castle operator Andrea Smallwood, posed as a Ukrainian diplomat to help facilitate the scheme an accusation her lawyer fiercely contests. Ms. Smallwood believed he was simply passing on an employee discount, lawyer Lenny Hochberg said in a written statement, noting his client, who also borrowed tens of thousands of dollars from Mr. Agostini, had no knowledge of the alleged colossal fraud. Though Ms. Smallwood signed documents provided by Mr. Agostini when she picked up the alcohol, he said, she did not review them in detail. What is particularly troubling is that rather than the LCBO taking any responsibility for failing to have the proper systems in place they are looking to make Ms. Smallwood a scapegoat, Mr. Hochberg said, noting his clients profit margin on the excess booze she sold to her friends was minimal, and can be calculated in the hundreds. No one from the LCBO was available for an interview Monday, and none of the agencys allegations have been proven in court. Mr. Agostinis lawyer, Alfred Herman, declined to comment, saying he had not yet received a copy of the statement of claim. I cant defend something if I dont know what theyre claiming, he said tersely before hanging up the phone. The LCBO which has since revamped its policies around diplomatic sales estimates that between 2005 and 2011, about $1.6-million of alcohol was shipped to and released from its Toronto warehouse, but the proceeds disappeared. The agency was reportedly seeking to seize assets from those involved in the alleged scam, including Ms. Smallwoods trailer and her bouncy-castle business. Peers and colleagues of Mr. Agostini and Ms. Smallwood were reportedly baffled by their expensive lifestyles; a tip from one of those individuals, a neighbour at Ms. Smallwoods trailer park, prompted the LCBO to investigate. Ontario Provincial Police were also enlisted to probe the alleged fraud. National Post Thé Mulindwas Communication Group "With Yoweri Museveni and Dr. Kiiza Besigye Uganda is in anarchy" Kuungana Mulindwa Mawasiliano Kikundi "Pamoja na Yoweri Museveni na Dk. Kiiza Besigye Uganda ni katika machafuko"
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