Lawsuit over story of Russian bribe plot targeting Nenshi is 'frivolous,' say defendants

The news outlet being sued after reporting a failed plot to entrap Naheed Nenshi in a scandal when he was Calgary's mayor has filed a statement of defence.

In response to the $1-million lawsuit, Canadaland said it only printed facts. It provided a detailed breakdown of its investigation.

Canadaland broke the story in October, reporting a plan to force Nenshi from office by videotaping him taking illegal Russian money. It chronicled the alleged participants and their roles.

"The plaintiffs did exactly what was reported," it said in its statement of defence.

Canadaland reported that Edith and Shane Wenzel, who own Shane Homes, provided money to political fixer David Wallace through conservative fundraiser Prem Singh.  

Weeks later, the Wenzels filed a $1-million lawsuit against Canadaland, publisher Jesse Brown, Wallace and Singh.

The Wenzels have not denied providing money to Singh but say they were unaware of how those funds would be used. 

• Lawsuit filed over story of alleged entrapment plot involving Nenshi and Russian money

Now Canadaland and Singh have filed statements of defence asking a judge to dismiss the lawsuit, describing it as a SLAPP (strategic lawsuit against public participation) action.

The lawsuit, says the news outlet, is "intended to intimidate journalists from reporting on newsworthy events out of fear of being sued."

'Plaintiffs did exactly what was reported'

Canadaland reported the entrapment plan "was an attempt by a local fixer, backed by local business interests."

"This statement is true," reads Canadaland's statement of defence. "Wallace was 'backed' by Edith and Shane Wenzel. Their money was used to fund his activities."

• Former Calgary mayor Nenshi denounces alleged plot to entrap him with illegal Russian money

According to Canadaland, Wallace said he was hired by developers and conservatives in 2019 with a plan to set up a scenario that would put politicians in a compromising position and then record them accepting favours.

The goal was to "to derail [Nenshi's] career and remove him from office."

"The plan failed when Nenshi declined to take the bait," reads Canadaland's statement of defence.

In their statement of claim, the Wenzels say they gave money to Singh's non-profit organization and were "unaware" of how it was ultimately used.

Following the money

Canadaland defended its story, saying it "made a point not to state that the Wenzels were privy to the details of Wallace's plan," according to the defence statement.

"The defendants were justified in making the statements they did — they are facts."

Wallace's banking records were examined by the journalists and showed he received funds from conservative non-profit set up by Singh called Canadians for Democracy and Prosperity Incorporated and a second entity connected to Singh called Affluence.

Corporate registry records showed Edith Wenzel and Singh were directors of CDP, according to Canadaland's statement of defence.

Emails suggest Wenzels met with Wallace

According to the newly filed court documents, emails from February 2020 between Edith Wenzel and Singh show the pair were involved in effort to "immediately" replace the mayor. They also suggest Edith met with Singh and Wallace "about his work on at least three occasions."

The emails, provided to Canadaland by Wallace, also suggest Shane met with Wallace and Singh before providing money to Singh.

Brown and reporter Cherise Seucharan recorded interviews with Wallace, Gian-Carlo Carra, Singh, Chad Hallman, Alan Hallman, Cal Wenzel and Richard Marsh.

Canadaland detailed the fruits of each interview which corroborated different pieces of the investigation.

• Calgary police say they'll investigate alleged Russian bribe plot aimed at Nenshi

Brown and Seucharan also made numerous attempts to speak with Shane and Edith Wenzel via phone, email and direct message but neither responded to requests for comment, according to the defence document.

When the reporters contacted Cal Wenzel, he told Canadaland his wife probably wasn't responding because she "doesn't really give a shit."

In her statement of defence, Singh said she simply introduced the Wenzels to Wallace and was unaware of what transpired afterward. 

Singh also said she and Wallace have been co-operating with RCMP in its identity theft and voter fraud investigation into the 2018 UCP leadership race. 

Wallace has yet to file his statement of defence.