Item - 2019.EA3.1
Tracking Status
- This item was considered by Compliance Audit Committee on July 2, 2019 and was adopted with amendments.
EA3.1 - Compliance Audit Application by Adam Chaleff for the Election Campaign Finances of Jim Karygiannis
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Statutory - Municipal Elections Act, SO 1996
Committee Decision
The Compliance Audit Committee:
1. Denied the request to adjourn and proceeded to hear the application at its meeting on July 2, 2019.
2. Granted the application for a compliance audit.
1. The Compliance Audit Committee met on July 2, 2019 to hear Item EA3.1.1 the Compliance Audit Application of Adam Chaleff for a compliance audit of the Election Campaign Finances of the Respondent, Jim Karygiannis.
2. Counsel for the Applicant appeared before the Committee and provided submissions related to the Application.
3. The Applicant’s counsel provided information to the Committee to support the Applicant’s belief that the Respondent contravened provisions of the Municipal Elections Act, 1996 relating to election campaign finances.
4. The Applicant raised three main concerns relating to the Respondent’s compliance with the Act. First, honoraria paid to the Respondent’s supporters in the amount of $81,000.00; second, an allegation that the Respondent misclassified the expenses for a mailing of promotional material; and third, the Respondent misclassified a voter appreciation event as a fundraising event.
5. The Committee then provided the Respondent’s counsel with the opportunity to respond. The Respondent’s counsel stated that he was not in a position to reply to the Applicant’s submissions. The Respondent’s counsel made a brief submission with respect to procedural fairness and stated that whether the Committee met today or on July 4, 2019 (the last day for the Committee to render a decision in accordance with ss. 88.33(7) of the Act), his objection remained.
6. The Committee heard submissions from one member of the public, Roland Lin.
7. The Committee concluded that there are reasonable grounds that:
a. the Respondent misclassified honorarium payments in his audited financial statement, which if properly classified would have exceeded the General Spending Limit of $61,207.95;
b. the Respondent improperly classified an expense for the mailing of promotional material as a fundraising expense; and
c. the Respondent misclassified a voter appreciation event as a fundraising event, which if properly classified would have exceeded the voter appreciation spending limit of $6,120.80.
8. For the reasons stated above, the Committee shall appoint an auditor to conduct a compliance audit of the election campaign finances of Jim Karygiannis, in accordance with s. 88.33(10) of the Act.
Decision Advice and Other Information
The Compliance Audit Committee recessed its public session to meet in closed session to deliberate in private on Item EA3.1 - Compliance Audit Application by Adam Chaleff for the Election Campaign Finances of Jim Karygiannis and to receive advice that is subject to solicitor-client privilege.
Summary
Application for a Compliance Audit received June 4, 2019, from applicant Adam Chaleff for candidate Jim Karygiannis for City Councillor Ward 22 Scarborough-Agincourt.
Background Information
https://www.toronto.ca/legdocs/mmis/2019/ea/bgrd/backgroundfile-135041.pdf
Attachment 1 - Book of Authorities of the Applicant, Adam Chaleff
https://www.toronto.ca/legdocs/mmis/2019/ea/bgrd/backgroundfile-135066.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2019/ea/comm/communicationfile-95758.pdf
(June 26, 2019) Letter from Michael I. Binetti, Affleck Greene McMurtry LLP, on behalf of Candidate Jim Karygiannis (EA.Supp.EA3.1.2)
https://www.toronto.ca/legdocs/mmis/2019/ea/comm/communicationfile-95757.pdf
Speakers
Michael Binetti, Affleck Greene McMurtry LLP, on behalf of Candidate Jim Karygiannis
Roland Lin
Motions
6:13 p.m. - That the Compliance Audit Committee recess its public session to meet in closed session to consider Item EA3.1 - Compliance Audit Application by Adam Chaleff for the Election Campaign Finances of Jim Karygiannis to receive advice that is subject to solicitor-client privilege.
6:45 p.m. - That the Compliance Audit Committee recess its public session to meet in closed session to consider Item EA3.1 - Compliance Audit Application by Adam Chaleff for the Election Campaign Finances of Jim Karygiannis to receive advice that is subject to solicitor-client privilege.
That the Compliance Audit Committee deny the request to adjourn and proceed to hear the application at its meeting on July 2, 2019.
7:22 p.m. - That the Compliance Audit Committee recess its public session to meet in closed session to deliberate in private on Item EA3.1 - Compliance Audit Application by Adam Chaleff for the Election Campaign Finances of Jim Karygiannis and to receive advice that is subject to solicitor-client privilege.
The Compliance Audit Committee grants the application for a compliance audit.
1. The Compliance Audit Committee met on July 2, 2019 to hear Item EA3.1.1 the Compliance Audit Application of Adam Chaleff for a compliance audit of the Election Campaign Finances of the Respondent, Jim Karygiannis.
2. Counsel for the Applicant appeared before the Committee and provided submissions related to the Application.
3. The Applicant’s counsel provided information to the Committee to support the Applicant’s belief that the Respondent contravened provisions of the Municipal Elections Act, 1996 relating to election campaign finances.
4. The Applicant raised three main concerns relating to the Respondent’s compliance with the Act. First, honoraria paid to the Respondent’s supporters in the amount of $81,000.00; second, an allegation that the Respondent misclassified the expenses for a mailing of promotional material; and third, the Respondent misclassified a voter appreciation event as a fundraising event.
5. The Committee then provided the Respondent’s counsel with the opportunity to respond. The Respondent’s counsel stated that he was not in a position to reply to the Applicant’s submissions. The Respondent’s counsel made a brief submission with respect to procedural fairness and stated that whether the Committee met today or on July 4, 2019 (the last day for the Committee to render a decision in accordance with ss. 88.33(7) of the Act), his objection remained.
6. The Committee heard submissions from one member of the public, Roland Lin.
7. The Committee concluded that there are reasonable grounds that:
(i) The Respondent misclassified honorarium payments in his audited financial statement, which if properly classified would have exceeded the General Spending Limit of $61,207.95;
(ii) The Respondent improperly classified an expense for the mailing of promotional material as a fundraising expense; and
(iii) The Respondent misclassified a voter appreciation event as a fundraising event, which if properly classified would have exceeded the voter appreciation spending limit of $6,120.80.
8. For the reasons stated above, the Committee shall appoint an auditor to conduct a compliance audit of the election campaign finances of Jim Karygiannis, in accordance with s. 88.33(10) of the Act.