Trial of ex-economic development executive hears from alleged victims

A northern New Brunswick businessman wiped away tears while testifying about sending his son's death benefit funds to Daniel Bard, believing it would become a part of a larger loan, money that never arrived. 

"The emotional toll has been unreal," Luc Bernard testified Wednesday, the second day of Bard's trial in Moncton provincial court. 

Bard is being tried on 19 charges that include possession of property obtained by crime, fraud, theft and money laundering. The alleged offences cover a period between 2016 and 2020. 

Bard was vice-president of investment attraction for 3+ Corp., a municipally funded business development agency for the Moncton region, between 2016 and 2018.

Two charges relate to a company Bernard co-owned with his wife and brother-in-law, a holding company called HIL Group Inc., based in Charlo, near Campbellton.

Money was for joint-partnership project

Bernard testified he'd known Bard about 25 years. Around 2015, he said Bard presented HIL Group with a plan that involved paying Bard a deposit to secure a multimillion-dollar loan to invest in a business project that involved a Spanish company.

Bernard's business partner and brother-in-law, Hervé Auclair, testified the plan was a joint partnership with the Spanish firm to use its technology to turn sewage sludge into pellets that could be burned. 

Auclair testified about discussions with TransAqua to test the technology at its wastewater treatment plant in Riverview.

Bernard said Bard initially proposed an $80-million loan, but Bernard testified they only needed $4 million for the project.

Bard proposed what Bernard described as a non-recourse loan, which meant if the investment worked out, the company would have to repay the loan. If it didn't, the loan wouldn't have to be repaid. 

Bernard testified that Bard asked for an initial deposit to facilitate the loan, money he believed would cover things like legal expenses, brokers and money exchanges.

Bernard said he made an initial payment of $20,000 US to Bard, who then said a larger deposit was required. 

Bernard testified that led to using $80,000 US from his son's death benefit payout. Bernard's 19-year-old son died in a work accident in 2012, which led to a life insurance payment.

"We wanted to do good," Bernard testified about using the money to facilitate the loan for the business project.

Crown prosecutor Andrew Pollabauer asked about the benefit they expected would result. 

"To help local families build better businesses for local families. That was my goal," Bernard testified. 

Bernard testified the money was deposited in Bard's bank account in late summer 2016 and he was told to expect the loan by Christmas.

However, he said nothing happened. He said he asked Bard for updates and was told the money was caught up in an exchange in New York, then he was told that there was an issue with the Canadian Revenue Agency, followed by more delays. 

"Basically, I was just given the runaround, in my opinion," Bernard said. "It was delays after delays after delays."

Delays turn alarm, witness says

Bernard said the agreement with Bard was verbal, though they had travelled to Spain with Bard and initially had no reason to doubt the plan was legitimate. 

But he testified that he eventually lost patience with Bard's excuses. He checked with his bank and said what he was told alarmed him.

"It was empty and closed. That rang a big bell. And that's when I figured I had to call my lawyer," Bernard testified. He sued Bard, but said the original deposit hasn't been repaid.

The prosecutor, near the end of questioning, Bernard asked about the impact the issue has had on him. 

Bernard said it led to "a rough few years" with a steep emotional toll.

Bernard was cross-examined by Bard's lawyer, James Matheson, who asked whether the payment to Bard included his fee for arranging the loan.

Bernard said his understanding was it didn't. He said he assumed Bard would get a payment somehow, though. 

Auclair's testimony went into more details about the plan, the financial arrangements and text messages with Bard over months as they tried to get updates on the plan.

The trial is scheduled to last six weeks.