Former SNC-Lavalin Executives Charged With Multiple Counts Of Fraud

Former SNC-Lavalin (TSX:SNC) executives have been arrested and charged with multiple crimes, including fraud and conspiracy to commit fraud.

In a news release, the RCMP announced that it had arrested and charged former SNC-Lavalin vice presidents Normand Morin and Kamal Francis and charged them with several forgery and fraud charges.

The RCMP said its year long probe, dubbed "Project Agrafe," focused on bribes that were allegedly paid in exchange for being awarded a contract.

The RCMP said the contract at issue was worth $128 million and was tied to work on the Jacques Cartier bridge in Montreal. According to the charges, a $2.23-million bribe was paid to Michel Fournier, the former head of the agency responsible for the Jacques Cartier and Champlain bridges, in exchange for being awarded the work.

Fournier was sentenced to five years in prison after he pleaded guilty in 2017 to accepting bribes. In its news release, the Quebec prosecutor’s office said it has invited SNC-Lavalin to negotiate a remediation agreement.

In its own news release, SNC-Lavalin said it welcomed that opportunity and underscored that it is the first time that a Canadian company had been invited to enter negotiations for what’s otherwise known as a "deferred prosecution agreement."

Morin and Francis, along with representatives from the engineering and construction company, are scheduled to appear in a Montreal courtroom on September 27.