Item - 2021.EA9.1

The Compliance Audit Committee considered the apparent contraventions identified in the audit report prepared by MNP LLP of the campaign finances of Jim Karygiannis for the campaign period from May 1, 2018 to December 31, 2018 (the "audit report"), and has decided to commence a legal proceeding against the candidate for the apparent contraventions. 

1. The Compliance Audit Committee met on December 1, 2021 to consider the audit report.

2.  Counsel for Adam Chaleff, an Applicant, appeared before the Committee and provided oral and written submissions related to the audit report.

3.  Roland Lin, an Applicant, appeared before the Committee and provided oral and written submissions related to the audit report.

4.  Counsel for Jim Karygiannis, the candidate, appeared before the Committee and provided written and oral submissions related to the audit report.

5.  Mr. Chaleff’s counsel, Mr. Al-Khatib, made submissions to the Committee to support Mr. Chaleff's position that the Committee commence legal proceedings against Mr. Karygiannis in respect of the apparent contraventions identified in the audit report. In summary, Mr. Al-Khatib submitted that the City should commence legal proceedings against Mr. Karygiannis to deter future violations of campaign spending rules.

6.  Mr. Lin made submissions to the Committee to support his position that Mr. Karygiannis breached various sections of the Municipal Elections Act, 1996, S.O. 1996, c 23 (the “Municipal Elections Act”) and detailed the alleged contraventions. Many of Mr. Lin’s submissions were previously made to the Committee when an auditor was appointed to examine the campaign finances of Mr. Karygiannis.

7.  The Committee provided Mr. Binetti with the opportunity to respond. Mr. Binetti submitted that the candidate had already incurred sufficient consequences. Currently, the candidate has been removed from office, and is not able to run until after the next regular election. However, the Committee is aware that other consequences could apply, including a fine equal to the amount of the excess expenses, and the general penalties outlined in s. 94.1 of the Municipal Elections Act.

8.  The Committee accepts that the auditor's report outlines apparent contraventions of the Municipal Elections Act including the payment of non-campaign related honoraria, and exceeding the limit on parties and other expressions of appreciation.

9.  The Committee is of the view that it is of fundamental importance that public confidence in the electoral process is maintained. The Committee is of the opinion that it is in the public interest to commence proceedings against the candidate. Considering the apparent contraventions of the Municipal Elections Act identified by the auditor, the Committee has determined that this matter should be referred to counsel to commence legal proceedings against Mr. Karygiannis; and the appointed prosecutor shall have all of the usual power and authority of a prosecutor.

Josh Epstein, MNP LLP gave a presentation on Election Compliance Audit - Candidate Jim Karygiannis.

The Compliance Audit Committee recessed its public session to meet in closed session to deliberate in private on Item EA9.1 - Compliance Audit Report for the City of Toronto Re: Jim Karygiannis and to receive advice that is subject to solicitor-client privilege.

Final Compliance Audit Report (November 10, 2021) from MNP LLP for the Candidate Jim Karygiannis.