Development agency not aware of Daniel Bard's questionable activities, probe finds
Moncton agency ordered independent investigation into Bard scandal last year
Shane Magee · CBC News · Posted: Feb 20, 2020 12:20 PM AT
Daniel Bard was a vice-president of investment attraction for 3+
Corporation between 2016 and 2018. Allegations of wrongdoing arose last
fall, triggering the economic development agency to order a third-party
investigation. (3+/Facebook)
An outside investigation found no evidence that alleged
wrongdoing by Daniel Bard was known or authorized by other staff of a
Moncton-based economic development agency, but the report questions the
thoroughness of the agency's hiring process.
Bard
was vice-president of investment attraction for 3+ Corporation between
2016 and February 2018. The investigation was ordered by 3+ last
fall after allegations of wrongdoing arose about Bard.
Bard is
being accused by several business owners and individuals of receiving
hundreds of thousands of dollars in administrative and brokerage fees
while working with 3+, but failing to deliver on promises and then
vanishing. The RCMP are investigating him for breach of trust.
When
the allegations became public, 3+ CEO Susy Campos ordered an outside
investigation that was conducted by Fredericton lawyer Joël Michaud.
"There
is no evidence supporting an allegation that Bard was acting as an
authorized representative of the Corporation while engaging in the
impugned activities," Michaud wrote in the 13-page report
released Thursday.
"His activities were in no way sanctioned or approved by the Corporation."
Joël Michaud was hired to carry out the external investigation. (CBC)
The agency's website says the role of 3+ is to promote the
greater Moncton region, attract investment and help existing businesses
expand. It receives more than $500,000 in annual funding from the
municipalities of Moncton, Dieppe and Riverview.
Moncton lawyer
Christian Michaud represents multiple parties who say they have lost
money to Daniel Bard. He estimates their combined losses at between $2
million and $5 million.
Christian Michaud said he wanted 3+ held
responsible given it should have known there was at least one lawsuit
against Bard at the time he was hired.
Bard was hired in July 2016.
"While
the evidence is somewhat disputed on the hiring process, very few
checks were performed prior to offering Bard a position," Joël Michaud
wrote in the report.
Christian Michaud represents some of Bard's alleged victims. (CBC)
The former CEO recalled reviewing a resume submitted by Bard,
however no resumé was found in the 3+ records, the report states. The
only outside information came from a 3+ employee who said Bard was an
"enthusiastic entrepreneur and a nice person," the report states.
"The
former CEO states that he and the employee researched Bard on the
internet but found nothing particularly useful, and more importantly,
nothing that might raise concerns," the report states.
Christian
Michaud said Thursday that the report backs his view the organization
could have done more to look into Bard's background.
"I hope
that they'll learn from it, and in the future do proper review of client
people they're looking at hiring," Christian Michaud said.
When
Bard was hired he signed an agreement that he wouldn't engage in other
employment, including consulting, that could conflict with his
obligations to 3+.
Bard
claimed he had international contacts in banking and in other
industries that would help him attract business to Moncton as well as
ongoing relationships with several companies. He told 3+ that the goal
was to bring these clients to 3+ "on his own schedule," the report
states.
The report says the former 3+ CEO had a discussion with
Bard about "moonlighting." The former CEO, who isn't named in the
report, says his understanding was that Bard's company, VM Venture
Management Corp., and Bard would cease all activities but Bard would
keep his contacts and bring them to 3+.
But the report says Bard continued his work outside of 3+.
Saly
and Clinton Davis, who owned the Glamour Secrets salon in Dieppe's CF
Champlain mall, told CBC that after a few years in business, the store
was just about to start turning a profit. But the salon's franchise
agreement was coming to an end. Wondering if they should make other
investments, they approached 3+ for advice in July 2017.
Clinton and Saly Davis went to police in August about Daniel Bard. (Gabrielle Fahmy/CBC)
The report states they were assigned to Bard, who met with the
couple but didn't seem interested in their plans to invest in a diner.
Instead, he suggested he could find a restaurant for them to buy and
later raised the idea of becoming part of a "huge project" he was
working on.
He told them he was a volunteer at 3+ but had many businesses, according to the report.
Bard
asked the couple for money for a proposal to help them open their own
line of salons, a beauty school and a beauty products warehouse for an
online store.
But they had to pay VM Venture Management
Corp. $25,000 US as a brokerage fee and to secure them a loan of $8
million to $13 million to get the project started.
They
gave Bard the money in September 2017. But the loan didn't materialize
and they had difficulty meeting Bard, they told CBC last year.
Michaud's
report says the money never went into 3+ accounts. The funds promised
never appeared and a cheque Bard wrote to the couple bounced. They
reported Bard to RCMP.
RCMP Cpl. Jullie Rogers-Marsh told
Radio-Canada on Thursday the force is continuing its investigation,
though no charges have been laid. She said there's no timeline for the
criminal investigation.
"The investigation can be very complex
and it does take time to look at everything," Rogers-Marsh said. "As
soon as we're able to provide an update, we will."
The report
concludes that "Bard appears to have abused his position to enrich
himself and defraud the clients of the [3+] Corporation."
Susy Campos, the current CEO of 3+, says the unethical behavior by one individual does not represent how the agency operates. (CBC)
"We sincerely regret that anyone was
impacted by the actions of this former employee," Campos said in a news
release Thursday. "We will continue to work hard to instill the
confidence of our clients and partners."
The news release says the corporation will "increase the rigour of the hiring process" and make changes to its policies.
It
will ensure a code of conduct is signed by all employees and reviewed
annually, "strengthen" its conflict of interest policy to require
employees get written approval for work outside 3+, develop a
whistle-blower policy and review a policy that allowed employees to use
their own mobile devices for work.
Reply to @David Amos:
"The former CEO recalled reviewing a resume submitted by Bard, however
no resumé was found in the 3+ records, the report states. The only
outside information came from a 3+ employee who said Bard was an
"enthusiastic entrepreneur and a nice person," the report states."
Lewis Taylor
Reply to @David Amos:
that is more than anyone ever said about you...including your family!
David Amos Surprise Surprise Surprise
Shawn Tabor Somebody
hired him, he had to have people speak good things of him, almost like
the interview was on an island, down in the southern part of this rock
or planet. This shows a lot. Keep digging, if you dare. LOL
Christian Michaud represents some of Bard's alleged victims. (CBC)
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