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News Story
Manso gets two years in DND invoicing scam
By Ottawa Business Journal Staff
Tue, Nov 6, 2007 8:00 AM EST

Ottawa businessman Ignatius "Cholo" Manso has been sentenced to two years in prison for his part in the invoicing scheme that bilked the Canadian government and Hewlett-Packard Canada of as much as $159 million.

Mr. Manso pleaded guilty to two counts of theft over $5,000 in September for having helped steal $11 million from the Department of National Defence between 1997 and 2003. He is believed to have received $1.6 million from the scam.

The judge in the case, Ann Alder, characterized Mr. Manso as a small player in the scam, but noted that his activities were deliberate criminal acts that went on for years.

The man considered the mastermind behind the scheme, Paul Champagne, faces sentencing in January. He pleaded guilty in July to one count of breach of trust and one count of fraud. Five other charges against him, which included allegations of money laundering, were dropped.

Another alleged partner in crime, Peter Mellon, has a preliminary hearing in March.

According to an agreed upon statement of facts, Mr. Manso took part in Mr. Champagne's invoicing scheme, which saw bills for "professional services" forwarded through third-party companies to Hewlett-Packard Canada, which had contracts for computer maintenance with DND.

Mr. Manso, a former logistics officer for the Canadian Forces, admitted his company, Avemore International Inc. - previously known as Quarterdeck Consulting Inc. - forwarded these bogus "professional services" invoices from Mr. Champagne. He also admitted to hiring several key DND officials to cover up the invoicing fraud between September 1997 and May 1998.


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