Contractor Guy Adrian Lapierre files defence in Ottawa Hospital fraud suit
G.A.L. Power Systems Ottawa Ltd. latest defendant to deny wrongdoing in alleged kickback scheme
Another contractor has filed a statement of defence denying any wrongdoing in response to allegations made in a lawsuit brought forth by The Ottawa Hospital earlier this year.
In January, the Ottawa Hospital named five contractors and two employees in a statement of claim that alleged they conspired in a kickback scheme to defraud the hospital of construction contracts.
Lawyers for Guy Adrian Lapierre, founder and director of G.A.L. Power Systems Ottawa Ltd., entered a statement of defence in Ottawa court on July 8. The company supplies power generators and climate control equipment.
The statement calls the allegations against Lapierre "broad, sweeping, and outrageous" and "patently false."
Among the kickbacks described in the hospital's legal action against Lapierre and the other defendants:
- Lavish trips.
- Jobs for hospital employees' family members, whose salaries were invoiced back to the hospital.
- Construction work on hospital employees' personal property performed for free or at low cost.
Two other defendants also filed statements of defence last week. Federal Electric (1976) Limited and its owner Larry St. Pierre, as well as Pro Management and Diamond Construction, both owned by Roch St. Louis, denied both the general allegations of taking part in a fraud scheme as well as the specific accusations in the original lawsuit.
Denies 'wrongful conduct'
Lapierre's defence states that he "categorically denies the frivolous, scandalous, and vexatious allegations made by the Plaintiff against him that he participated in a fraudulent scheme or conspiracy."
It does confirm that Lapierre was friends with Frank Medwenitsch, the former director of planning and capital projects at the hospital who's named in the alleged scheme, but says there was "nothing wrong" with their friendship.
The statement also confirms Lapierre did attend the now highly publicized fishing trips with Medwenitsch and other representatives from the hospital and companies hired by it, but Lapierre denies he engaged in any "wrongful conduct" on either trip.
"For both trips, Lapierre was presented with a request for payment of his share of the costs by the organizers. He did not question the amount for his share, which appeared reasonable," the statement reads, declaring his cost was covered by G.A.L Power Systems.
None of the allegations has been tested in court.