Toronto police have arrested four people in connection with a fraud investigation involving a TTC project manager.
Last year, after receiving a tip, police looked into a contract between Sebastien Corbo, owner of IPAC Paving Ltd. and the TTC. They found that between June 2009 and July 2010, the TTC was billed $198,619.92 for work that in reality amounted to only $54,087.75.
TTC Project Manager Bruno Colavecchia was in charge of supervising different construction and paving work being done on TTC sites. Police said his duties also included paying IPAC invoices and setting up the contract fees.
Police said bank accounts were created under the names of Colavecchia, his wife and his son and that money was deposited into these accounts from IPAC under allegedly fraudulent companies.
Charges were laid against four suspects Wednesday but police said their investigation has been going on since last summer.
The investigation is still ongoing however, and the TTC continues to assist police with the probe, authorities said.
The following people have been charged in connection with the case:
- Toronto resident Sebastian Corbo, 51, charged with fraud over $5,000, posession of property obtained by crime, laundering proceeds of crime and two counts of conspiracy to commit an indictable offence.
- Maple resident Bruno Colavecchia, 49, has been charged with fraud over $5,000, laundering proceeds of a crime, possession of proceeds of crime, agent receiving secret commission and two counts of conspiracy to commit an indictable offence.
- His wife, Vincenza Grossi, 49, and son Michael Colaveccha, 21, have been charged with laundering proceeds of a crime, possession of proceeds of a crime and conspiracy to commit an indictable offence.
The suspects are all expected to appear in court on the afternoon of July 28.
