Del Mastro campaign checked limit before stopping cheque

A top staffer for Conservative MP Dean Del Mastro's 2008 election campaign put a "stop payment" on a cheque for election services four days after contacting Elections Canada about spending limits, court documents show.

The cheque was the second part of a $21,000 payment from the campaign that Del Mastro says was made in error because the services weren't ordered. The services, proposed by Holinshed Research Group,would have put Del Mastro over his election spending limit. The firstcheque from the campaign to Holinshedhad already cleared.

The documents also showJohn McNutt, Del Mastro's campaign manager, was interviewed by Elections Canada in connection with the investigation.A member of the Peterboroughriding association, Daniel Rosborough,declined to be interviewed.

Rosborough told investigators he had spoken withDel Mastroand that Del Mastro would "handle the matter with Elections Canada." Del Mastro hassuggested he wasn't aware of the probe and said the first he heard of it was when a reporter called to interview him for a story.

CBC News prepared a timeline of events surrounding Del Mastro's 2008 campaign, which is nowthe subject of an investigation into hisspending in his Peterborough, Ont., riding.

An investigator for the agency says in court documents that he believes Del Mastro knew he'd spent too much and tried to cover it up. The documents show Del Mastro paid Holinshed $21,000 from his personal chequing account. He hasn't explained what that payment was for.

The agency is also investigating Richard McCarthy, Del Mastro's official agent, who handles money on his behalf during campaigns and files records with Elections Canada. The investigator says he believes McCarthy knew Del Mastro spent too much butsubmitted an erroneous election claim anyway.

Del Mastro says he was reimbursed for any election expenses and that he didn't exceed his limit.

None of the allegations have been tested in court, and no charges have been filed. The sworn affidavits were filed to obtain production orders as part of the investigation.

The investigation comes out of a complaint made by Frank Hall,president of Holinshed, which did work for Del Mastro during that campaign. Hall later took Del Mastro to small claims court over a second contract over which they couldn't agree on payment or the scope of work. That claim was dismissed as abandoned.

This timeline has been gathered after viewing a number of files, includingDel Mastro's 2008 election invoices, receipts and banking statements, Hall's small claims suit and two production orders filed in court by Elections Canada.

TIMELINE

August 18, 2008The date of cheque 254 from Dean and Kelly Del Mastro to Holinshed Research Group for $21,000, signed by Dean Del Mastro.Frank Halltold Elections Canada that he received and deposited the cheque on Oct. 10, 2008.Thomas Ritchie, the Elections Canada investigator, arranged for production orders for Del Mastro's bank records to check whether the cheque was cashed out of sequence, which could be evidence it was backdated "to show a payment date outside the election period and the date of the contract."

Sept. 7, 2008 Prime Minister Stephen Harper asks Governor General Michalle Jean to dissolve Parliamentand sets an election for Oct. 14, 2008.

Sept. 14, 2008The date of a quotefrom Holinshed to Del Mastro's campaign for $21,000to providevoter identification lists and 630 hours of get-out-the-vote (GOTV) calling on election day and at advance polls.

It's also the date of an invoice from Holinshed to Del Mastro's campaignfor $1,575 $1,500 plus GST. The invoice lists "GOTV effort (live calls) on e-day" and has a note on it that appears tomatch Del Mastro's handwriting, saying hepaid it. Another note in different handwriting that appears tomatch McCarthy's says, "Reimbursed Dec. 12."

Del Mastro says his campaignturned down the $21,000quote and received the lower-priced one.

Ritchie says in the court documents that Del Mastro's personal banking records show he deposited the cheque on Dec. 17.

Sept. 15, 2008 The date next to the signature of Del Mastro'scampaign manager John McNutt, whosigns the $21,000 quoteunder "permission to proceed."Another note, which appears to have been added by McCarthy, notes the cheque numbers, dates and amounts paid.

A cover letter attached to the quote includes a note signed by McNutt that reads,"Frank, I can send 50% right away and the balance next week. Please start on polls I have included."

Del Mastro suggested to CBC News that the cheques were made out in error.

"The campaign never incurred a $21,000 expenditure from Holinshed research. Did not," he said.

"As I've indicated, the campaign did hire Mr. [Frank] Hall and his company and was invoiced $1,500 for a limited amount of work they did during the campaign. That is reflected in our campaign [records] and I was refunded for that."

Sept. 18, 2008 The date of the first cheque from the Conservative Party of Canada Peterborough's campaign accountto Holinshed Research Group. The cheque,signed by McCarthy, is for $10,000. A note on the cheque says "1st instalment of 2."

Sept. 20, 2008 The date of a phone call or email by McCarthy to Elections Canada, according to the documents filed in court by Ritchie. Ritchie says in his affidavit that the agency's contact log shows McCarthy inquired about the election spending limit for Peterborough and was informed it was $92,566.79.

Sept. 24, 2008 A copy ofthe bank'sstop payment request shows McCarthy cancelleda cheque to Holinshed for $11,000, post-dated to Sept. 25.A noteon the chequesays"2nd and final instalment."

Oct. 10, 2008 The date Hall says he received and deposited the $21,000 personal cheque from Del Mastro.

Oct. 14, 2008Election Day Del Mastrowins his seat with 27,630 votes (47.40 per cent of the vote).

Oct. 31, 2008 The date of the $10,000 cheque issued by Holinshed to refund the campaign for the overpayment. The cheque was made out to McCarthy as the campaign's official agent. A deposit slip showsit wasput in the bank Nov. 3.

Also the date on a handwritten, unsigned memo on Holinshed letterhead. The memo says "Return of deposit in amount of $10,000 sent in error from Dean Del Mastro's campaign account. Invoice to be sent to EDA [electoral district association] detailing portion relating to campaign."

Ritchie says in the court documents that he believes the memo, provided to Elections Canada by McCarthy, is a "false document." The writing on the memo bears a striking resemblance to writing on a memo about campaign finances with McCarthy's name at the top.

November, 2008 to September, 2009 There are a number of emails back and forth, increasingly contentious,between Hall and Del Mastro regarding a new project. Del Mastro ends the business relationship on Sept. 2, 2009.

Dec. 12, 2008 Del Mastro signs off on two quotes from Holinshed: one, dated June 20, 2008, for a $14,175 project using a custom database and the in-house GeoVote tool; and one dated Nov. 24, 2008, for $7,434 for a case management system.

Dec. 17, 2008 Del Mastro depositsa refund from the campaign to his personal bank account for the $1,575 invoice issued by Holinshed.

Sept. 2, 2009 Del Mastro ends the business relationship. Hall later files a suit in small claims court.

Oct. 14, 2009 Hall writes a letter to McCarthy about the campaign's 2008 election return, pointing out the work McCarthylisted for Holinshed isn't accurate. McCarthy responds by saying most ofthe $21,000 was for a contract with the riding association (minus the $1,575 paid for the election campaign). The riding association lists research expenses of $9,548.32, leaving $9,876.68 unaccounted for.

June 8, 2011 Hall's small claim suit over the post-electionproject is dismissed as abandoned.

April 23, 2011 Ritchie starts the investigation as a result of Hall's complaint.

Dec. 15, 2011 Ritchie and another Elections Canada investigator, Al Mathews, arrive at a pre-arranged interview with Daniel Rosborough, the financial agent for the Peterborough EDA. Rosborough said he had contacted Del Mastro and that Del Mastro said he would "handle the matter with Elections Canada." Rosborough told the investigators he wouldn't do an interview without Del Mastro's authorization.

June 6, 2012 The first media report surfaces of the Elections Canada investigation into Del Mastro.

June 7, 2012 Del Mastro responds in the Houseto a question by Liberal MP Scott Andrews.

"I think the member has served on committee long enough with me to know a couple of things about me. One is that I serve with integrity and conviction. While the member and I have not always agreed, he does know those qualities about me," Del Mastro said.

"My [election spending] statements that were provided in 2008, some four years ago, accurately reflect all expenditures incurred by both my campaign and my association. Anything that I paid on their behalf was refunded to me. I stand by those. I have never been contacted by Elections Canada on this matter."

June 13, 2012 Prime Minister Stephen Harper defends Del Mastro in the House of Commons.

"Mr. Speaker, as we all know, the hon. member for Peterborough has submitted all of his information to Elections Canada," Harper said in response to a question from interim Liberal Leader Bob Rae."In fact, that report was certified several years ago. The member of Parliament not only won that election but has since won a subsequent election. He serves his constituents and this House honourably, and I think we all should treat each other with a little more consideration than that."