Police lay fraud charges in alleged kickback scheme involving city housing worker

Ottawa police have charged two people in connection with an alleged kickback scheme involving a City of Ottawa housing program.

Police revealed on Tuesday that they have charged a former City of Ottawa case worker with breach of trust, fraud over $5,000 and receiving a bribe while working as a municipal employee.

They have also charged a landlord with bribing a municipal employee, as well as breach of trust and fraud over $5,000.

• Auditor general finds 'kickback scheme' between landlords and city housing worker
• City ends pause to housing program at centre of kickback scheme

Police are not releasing the names of the former case worker or the landlord. They said both accused were released on an undertaking and will appear in court at a later date. None of the charges have been proven in court.

Police said the charges followed an extensive investigation by their organized fraud section that was triggered by a report from the City of Ottawa's auditor general.

Auditor General Nathalie Gougeon revealed in December that the scheme allegedly resulted in the city paying inflated rents — up to 63 per cent above market rates — to the landlord through a housing allowance program.

In exchange for directing clients to the landlord, the former case worker allegedly got about $22,000 in payments, according to the auditor general's report. The payments allegedly took place from November 2023 to October 2024.

Hotline tip sparked AG's probe

The allegations first came to Gougeon's office through a tip to the city's fraud and waste hotline. On Tuesday, Mayor Mark Sutcliffe told reporters that the case underscores the importance of the hotline.

"Whenever there is an allegation of this kind it needs to be taken seriously, and I'm encouraged by the fact that the process is being followed and that these allegations are being taken seriously," he said. "That's why we have a fraud and waste hotline, so that information like this can be brought to the attention of the authorities."

The city accepted Gougeon's recommendations in relation to the case and confirmed that the case worker in question is no longer employed with the city.

Sutcliffe said the last he's heard, the city was still on track to implement those recommendations.

Kaite Burkholder Harris, executive director of the Alliance to End Homelessness Ottawa, said the city housing allowances are a critical tool for getting homeless people into housing.

She said the charges are about accountability, and should send a warning to anyone thinking of taking advantage of the system.

"I do think this is a one bad apple kind of context. I think ultimately it shows the severity of what's happened and that vulnerable people have been taken advantage of," Burkholder Harris said.