Opinion
UPDATED: SNC Lavalin – Just the Facts Ma’am
Opinion by Cory Litzenberger
Let’s take emotion out of it. Let’s take a look at the legislation. While I am not a lawyer, I do interpret tax legislation for a living, and so I decided to take a closer look at the criminal legislation pertaining to the SNC-Lavalin scandal.
The relevant legislation is in 《parentheses》below, but here is the Coles notes:
FACT – in 2015 SNC was charged by the RCMP under Section 3 of the Corruption of Foreign Public Officials Act
《3 (1) Every person commits an offence who, in order to obtain or retain an advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the benefit of a foreign public official
(a) as consideration for an act or omission by the official in connection with the performance of the official’s duties or functions; or
(b) to induce the official to use his or her position to influence any acts or decisions of the foreign state or public international organization for which the official performs duties or functions.》
FACT – In 2015, the RCMP charged SNC-Lavalin, along with its international division, with corruption and fraud in relation with their business dealings in Libya. The RCMP said officials at the company attempted to bribe several public officials in the country, including dictator Moammar Gadhafi, as well as other businesses in Libya.
FACT – The prosecutor is allowed to enter into a remediation agreement under Section 715.32 of the Criminal Code of Canada , if ALL conditions are met under 715.32(1).
《715.32 (1) The prosecutor may enter into negotiations for a remediation agreement with an organization alleged to have committed an offence if the following conditions are met:
(a) the prosecutor is of the opinion that there is a reasonable prospect of conviction with respect to the offence;
(b) the prosecutor is of the opinion that the act or omission that forms the basis of the offence did not cause and was not likely to have caused serious bodily harm or death, or injury to national defence or national security, and was not committed for the benefit of, at the direction of, or in association with, a criminal organization or terrorist group;
(c) the prosecutor is of the opinion that negotiating the agreement is in the public interest and appropriate in the circumstances; and
(d) the Attorney General has consented to the negotiation of the agreement.》
FACT – for the prosecutor to evaluate their public interest opinion, they must consider subsection 715.32(2) in its entirety which includes many relevant pieces of information except when 715.32(3) overrides it
《 Factors to consider
715.32(2) For the purposes of paragraph (1)(c), the prosecutor must consider the following factors:
[(a) to (h)]; and
(i) any other factor that the prosecutor considers relevant.》
FACT – 715.32(3) says even with all those factors to consider, you can NOT factor in the national economic interest (ie: the jobs argument) if they were charged the way the RCMP charged them
《Factors not to consider
715.32(3) Despite paragraph (2)(i), if the organization is alleged to have committed an offence under section 3 or 4 of the Corruption of Foreign Public Officials Act, the prosecutor must not consider the national economic interest, the potential effect on relations with a state other than Canada or the identity of the organization or individual involved.》
CONCLUSION – the jobs argument is irrelevant under the law in these circumstances – The prosecution knows this – The former Attorney General knows this – and based on the provisions as written, the jobs argument for SNC does not meet the legal requirement for a remediation agreement.
For these reasons, I find in favour of the former Attorney General.
— — — —
Update: While being interviewed on the afternoon of March 7, 2019, I looked even closer at the legislation and caught something I didn’t realize on first glance when reading it.
Notice at the end of 715.32(1)(c) the word “and”.
While I said this means that all of the tests in (a) through (d) must be met, I neglected to say that this means no one person has the sole final decision. The prosecutor is mentioned in (a), (b), and (c); while the Attorney General is only mentioned in (d).
To put another way, this law is written so that it is not solely the decision of the Attorney General, nor the prosecutor. Rather, it requires both the Attorney General and the Prosecutor to agree to proceed with negotiations.
Similar to a scene in the movies where you see nuclear codes kept between two different military heads before proceeding with the launch, such is the wording of this provision.
This means that the Attorney General does not have the final decision and so any suggestion that she does is incorrect. The decision is a joint one with most of the leg work having to be done by the prosecutor, not the Attorney General.
So let me recap: I think it is quite simple, that a Remediation Agreement (aka Deferred Prosecution Agreement) cannot be considered under the “national economic interest” (jobs) argument based on what legislation the RCMP used for the charges.
If that’s the argument, then the answer is “no” and the repeated number of times asking for the former Attorney General to revisit it over a four month period for something that appears so black and white might be considered workplace harassment if I were to do such a thing to one of my colleagues.
So, since the economic argument is moot, what other argument is there?
We heard in testimony that the parties may have wanted the Attorney General to look at it from a stance that does not imply economic interest.
Ironically, “we need to win an election” may actually be legal as “any other factor that the prosecutor considers relevant” but then we would have to assume the prosecutor would have to be partisan, and that is highly not likely in my experience.
So we now know that there must be an agreement between the prosecutor and the Attorney General.
We also know that “economic interest” cannot be the reason under the law.
So, if the law is that clear on economic interest, why would the Attorney General be asked repeatedly for reconsideration, unless it was not “economic interest” they wanted her to consider?
For these additional reasons, I still find in favour of the former Attorney General
—
Update #2: On March 8, 2019, the Federal Court of Canada ruled in favour of the Public Prosecution Service on SNC Lavalin’s request for judicial review citing:
“The law is clear that prosecutorial discretion is not subject to judicial review, except for abuse of process.” – Federal Court of Canada Justice Kane
Then, on March 11, 2019, the Organisation for Economic Co-operation and Development (OECD) came to the same conclusion as my interpretation of the law regarding the intention of the 1999 agreement, and said:
“political factors such as a country’s national economic interest and the identity of the alleged perpetrators must not influence foreign bribery investigations and prosecutions.” – OECD
We now have confirmation that there is no legal way that a country’s national economic interest can be considered under the law.
For these additional reasons, jurisprudence about the authority of the Public Prosecution Service, and third party reports about the intentions of the 1999 agreement from the OECD, I still find in favour of the former Attorney General for a third time.
—
Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html
Crime
‘Modern-Day Escobar’: U.S. Says Former Canadian Olympian Ran Cocaine Pipeline with Cartel Protection and a Corrupt Toronto Lawyer
Ryan Wedding, believed to be hiding in Mexico, is on the FBI’s Ten Most Wanted Fugitives list. The State Department reward is up to $15 million for information leading to his arrest.
The U.S. government has unsealed fresh criminal charges and sweeping financial sanctions against former Canadian Olympic snowboarder Ryan James Wedding, alleging that he orchestrated the importation of up to 60 metric tonnes of cocaine a year into the United States and Canada, relied on a Toronto lawyer who, according to the U.S. Treasury, “has also helped Wedding with bribery and murder,” and, while under the protection of a former Mexican law-enforcement officer with ties to senior Mexican police officials, ordered dozens of sophisticated assassinations across Canada, Latin America and the United States — including the execution of a federal witness in Colombia, according to U.S. government filings.
According to Attorney General Pam Bondi, “Wedding controls one of the most prolific and violent drug trafficking organizations in this world,” working “closely with the Sinaloa Cartel, a foreign terrorist organization, to flood not only American but also Canadian communities with cocaine.” Bondi said Wedding’s organization is responsible for moving multi-ton quantities of cocaine each year through Mexico into Los Angeles, before the drugs are shipped onward to Canadian and U.S. cities in long-haul semi-trucks.
As reported by The Bureau, these trucks and routes are controlled by Indo-Canadian crime networks. The U.S. government says that a Toronto lawyer, Deepak Balwant Paradkar, “introduced Wedding to the drug traffickers that have been moving Wedding’s cocaine and has also helped Wedding with bribery and murder.”

FBI Director Kash Patel likened Wedding to a “modern-day iteration” of Pablo Escobar and Joaquin “El Chapo” Guzmán and said Wedding is responsible for “engineering a narco-trafficking and narco-terrorism program that we have not seen in a long time.”
The Justice Department and FBI say Wedding, who competed for Canada at the 2002 Winter Olympics in Salt Lake City, now heads a billion-dollar-a-year narcotics enterprise that engages in cocaine trafficking, contract killings and intimidation across the United States, Canada and Latin America. Another target named along with Wedding is a former Italian special-forces soldier who helps the network with training, according to the U.S. government.
Wedding is believed to be hiding in Mexico and remains on the FBI’s Ten Most Wanted Fugitives list, with the State Department increasing its reward to up to $15 million for information leading to his arrest.
Prosecutors say the new indictment centres on the January 31, 2025, murder of a federal witness in Medellín, Colombia. According to U.S. Attorney Bill Essayli of the Central District of California, Wedding “placed a bounty on the victim’s head in the erroneous belief that the victim’s death would result in the dismissal of criminal charges against him and his international drug trafficking ring and would further ensure that he was not extradited to the United States.” The victim was shot five times in the head while dining at a restaurant in Medellín and died instantly, Essayli said.
Justice Department filings and officials at today’s Washington news conference allege that Wedding and his associates used a fake gangland “news” site, The Dirty News, as part of the plot. The indictment states that co-accused Gursewak Singh Bal, a Mississauga man described as co-founder and co-operator of The Dirty News, agreed — “in exchange for payment” — not to post negative material about Wedding and instead published a photograph of the cooperating witness so that he “could be hunted down and killed.” Essayli said the site was seized pursuant to a federal warrant and is no longer online.
Ten defendants were arrested Tuesday in Colombia, Florida, Québec and Ontario. In a parallel move, the U.S. Treasury Department’s Office of Foreign Assets Control announced sanctions against Wedding and nine individuals plus nine entities, effectively cutting them off from the American financial system.
Treasury describes Wedding as “an extremely violent criminal believed to be responsible for the murder of numerous people abroad, including U.S. citizens,” who “continues to direct drug trafficking, murder, and other serious criminal activities” from Mexico while on the run. The sanctions designation outlines a trans-Atlantic laundering system that moves proceeds through cryptocurrency, high-end cars and motorcycles, and front companies on three continents.

Among those named by Treasury:
Edgar Aaron Vázquez Alvarado, a former Mexican law-enforcement officer known as “the General,” who allegedly uses sources within Mexican police agencies to locate targets for Wedding and owns fuel-sector companies in Mexico;
Miryam Andrea Castillo Moreno, Wedding’s wife, accused of laundering his drug proceeds and assisting in acts of violence;
Carmen Yelinet Valoyes Florez, a Colombian running a high-end prostitution ring in Mexico who allegedly assisted with the murder of a federal witness;
Daniela Alejandra Acuña Macias, a Colombian national described as Wedding’s girlfriend, accused of collecting hundreds of thousands of dollars from him and helping obtain intelligence on rivals;
Deepak Balwant Paradkar, the Canadian attorney who Treasury says provided “illegal services” beyond a normal lawyer-client relationship, including introducing Wedding to key traffickers, helping with bribery and murder, and allowing Wedding to eavesdrop on privileged calls with other clients he allegedly wanted to kill;
Rolan Sokolovski, a Toronto jeweler who Treasury alleges laundered millions through his “Diamond Tsar” business and cryptocurrency transfers; and
Gianluca Tiepolo, an Italian former special-forces member who allegedly helped Wedding park his money in exotic vehicles and ran tactical training camps for hitmen.
According to Treasury, Paradkar “introduced Wedding to the drug traffickers that have been moving Wedding’s cocaine and has also helped Wedding with bribery and murder,” in exchange for luxury watches and additional fees. Vázquez and his Mexico-based fuel firms, Sokolovski’s jewelry company, and a series of Italian and U.K. vehicle and motorcycle dealers tied to Tiepolo have all been designated under Executive Order 14059 as part of Wedding’s laundering apparatus.
At the Washington news conference, Royal Canadian Mounted Police Commissioner Mike Duheme emphasized the role of cross-border cooperation, saying: “International cooperation, such as our involvement in Operation Giant Slalom, is vital to our ability to stay ahead of organized crime.”
But that message of seamless cooperation contrasts with what senior U.S. law-enforcement officials were saying privately months ago.
As The Bureau previously reported, a senior U.S. source insisted there has been a troubling lack of RCMP collaboration in probing Wedding’s networks. Not only did the RCMP allegedly stonewall Drug Enforcement Administration requests six years ago to crack down on Canadian trucking routes tied to Wedding’s shipments through the United States, the source said, but there was also a lack of cooperation in targeting his violent cells inside Canada — where associates, competitors, and even an innocent Indo-Canadian family in Caledon, Ontario, mistakenly linked to a trucker from Wedding’s network, were brutally executed.
“We tried to work with RCMP on Wedding too, and they said, ‘No,’” a source aware of probes from three separate U.S. agencies said. “And it’s like — he’s killing Canadian citizens. He’s killed God knows how many. And you still don’t want to cooperate because of whatever grievance. But the RCMP threw up roadblocks. You’ve got to get past those things because Canadians are dying.”
More to come on this breaking story.
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Alberta
Carney government’s anti-oil sentiment no longer in doubt
From the Fraser Institute
The Carney government, which on Monday survived a confidence vote in Parliament by the skin of its teeth, recently released a “second tranche of nation-building projects” blessed by the Major Projects Office. To have a chance to survive Canada’s otherwise oppressive regulatory gauntlet, projects must get on this Caesar-like-thumbs-up-thumbs-down list.
The first tranche of major projects released in September included no new oil pipelines but pertained largely to natural gas, nuclear power, mineral production, etc. The absence of proposed oil pipelines was not surprising, as Ottawa’s regulatory barricade on oil production means no sane private company would propose such a project. (The first tranche carries a price tag of $60 billion in government/private-sector spending.)
Now, the second tranche of projects also includes not a whiff of support for oil production, transport and export to non-U.S. markets. Again, not surprising as the prime minister has done nothing to lift the existing regulatory blockade on oil transport out of Alberta.
So, what’s on the latest list?
There’s a “conservation corridor” for British Columbia and Yukon; more LNG projects (both in B.C.); more mineral projects (nickel, graphite, tungsten—all electric vehicle battery constituents); and still more transmission for “clean energy”—again, mostly in B.C. And Nunavut comes out ahead with a new hydro project to power Iqaluit. (The second tranche carries a price tag of $58 billion in government/private-sector spending.)
No doubt many of these projects are worthy endeavours that shouldn’t require the imprimatur of the “Major Projects Office” to see the light of day, and merit development in the old-fashioned Canadian process where private-sector firms propose a project to Canada’s environmental regulators, get necessary and sufficient safety approval, and then build things.
However, new pipeline projects from Alberta would also easily stand on their own feet in that older regulatory regime based on necessary and sufficient safety approval, without the Carney government additionally deciding what is—or is not—important to the government, as opposed to the market, and without provincial governments and First Nations erecting endless barriers.
Regardless of how you value the various projects on the first two tranches, the second tranche makes it crystal clear (if it wasn’t already) that the Carney government will follow (or double down) on the Trudeau government’s plan to constrain oil production in Canada, particularly products derived from Alberta’s oilsands. There’s nary a mention that these products even exist in the government’s latest announcement, despite the fact that the oilsands are the world’s fourth-largest proven reserve of oil. This comes on the heels on the Carney government’s first proposed budget, which also reified the government’s fixation to extinguish greenhouse gas emissions in Canada, continue on the path to “net-zero 2050” and retain Canada’s all-EV new car future beginning in 2036.
It’s clear, at this point, that the Carney government is committed to the policies of the previous Liberal government, has little interest in harnessing the economic value of Canada’s oil holdings nor the potential global influence Canada might exert by exporting its oil products to Asia, Europe and other points abroad. This policy fixation will come at a significant cost to future generations of Canadians.
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