RCMP raided Winnipeg police HQ last June in Caspian investigation

RCMP raided an office inside the new Winnipeg police headquarters last Juneas part of its investigation into fraud and forgery by the building's general contractor,Caspian Projects,CBC News has learned.

After looking at a "small fraction" of the evidence it had collected up to that point, police believed the city overpaid $2.5 million for the new policeheadquarters building, according to the June 2015information to obtain asearch warrant.

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"Discrepancies were found between the monetary values that sub-trades charged Caspian and the amount Caspian then charged to the City of Winnipeg," wroteRCMPCst. Julie Cote incourtdocuments.

The search warrant targeted the on-site office ofengineering firmAdjeleianAllenRubeli(AAR) whichshared the space withthe Winnipeg Police Service andthe City of Winnipeg project director.

Officers believed they would find the information that was used by Caspian to back up invoicessubmitted to the cityinside the second flooroffice on Graham Ave.

Peter Chang, principalengineer withAAR"recommended the costsbased on the submission of Caspian's inflated documents and in turn, forwarded them to the City of Winnipeg," saidCote in court documents.

Chang was hired by the cityin 2012 "as their consultant whose responsibility was to protect their interests" on the police HQ project, according to court documents.

Several sub-tradeinvoices,alleged to have beeninflated by Caspian, were submitted to the city, including:

• Western Industrial Services Limited (WISL)RCMPalleged Caspian inflated twoWISLinvoices by a combined total of $570,000with the intention of defrauding thecity. AWISLemployeetold investigators he did not quote the higher amount and the "amounts must have been changedafter the fact," according to court documents. Thecompany declined to comment to CBC News. Peter Chang of AAR recommended the higher invoice and it was submitted to the city for payment, RCMP allege inthe court documents.
• Contempra Window Coverings RCMP alleged Caspian inflated Contempra's quote by $137,530and knowingly submitted it for approval to defraud the City of Winnipeg.Contempraowner Don Michalski told policethe base pricehe waspaid by Caspian was the lower amount and he didnot recognize the new price, according to court documents.The documents say Peter Chang of AAR recommended the higher invoice and it was submitted to the city for payment. Contempradeclined to comment.
• Calado Crane RentalsRCMP alleged Caspian "altered the amount of Calado's invoice and knowingly submitted the forged invoice for approval" which was $52,500 more than the original.Calado employees told police they had no knowledge of the more expensiveinvoice, court documents say.Calls to Calado were not immediately returned.

AARis the second company whereoffices were searched as part of the investigation into allegations of criminal wrongdoing during the building oftheWinnipeg police HQ.

Cote allegedCaspian billed the citymore than once for the same workandforwork done at unrelated jobs, according to court papers. Caspian was conducting additional constructionjobs during the buildingof the headquarters.

Cote alleges the City of Winnipeg was billed $1.8 million for steel work not connected to the policeHQ in any way based on three invoices from Abesco. Abesco owner, Wally Fast, told police the work was done at an unrelated job site, the court documents say. Abesco did notimmediately respond to a request for comment.

No charges have been laid and none of the allegations have been proven in court.

Armik Babakhanians and Peter Chang did not respond to requests for comment.