r/ it CANADA 111 the matter of an Application for a Search Warrant pursuant to section 487 of the Crirninal Code and a PROVINCE OF ONTARIO related Assistance Order pursuant to section 487.02 of the said Code. EAST REGION TNFORMATION TO OBTAIN A SEARCH WARRANT AND ASSISTANCE ORDER This is the Information of Corporal Greg Horton a Peace Officer ofthe Royal Canadian Mounted Police, in the city of Ottawa, Ontario. I have reasonable grounds to believe and do believe that offences contrary to an Act of Parliament have been committed, to wit: 0 Michael Duffy between December 22, 2008, and June 1, 2013, at Ottawa, Ontario, being an official in the Senate of Canada, did commit breach of trust in connection with the duties of his office by ?ling inappropriate expense claims contrary to section 122 of the CrI'mi'm:I Code. 0 Michael Duffy between the December 22, 2008, am] the June I, 2013, at Ottawa, Ontario, did by deceit, falsehood or fraudulent means defraud the Senate of Canada of money, exceeding $5,000, by ?ling expense claims and/or residency declarations containing false or misleading information, contrary to section 380(1)(a) of the Cr:'mI'm:l Code. AND THAT there are reasonable grounds for believing that the following things will afford evidence ofthe said offences: 0 All hotel room rental and folio information of Senator Michael (Mike) Duffy or Heather Duffy dated between January 1, 2009, and May 26, 2014, including guest names, addresses, dates of room rental, check-in and cheek-out date and time, room rates, total room rental costs, and method of payment. AND THAT there are reasonable grounds for believing that the said things or some part ofthem are in a place, namely: 0 The Great George Hotel located at 58 Great George Street, Charlottetown, Prince Edward Island. INTRODUCTION 1, Greg Horton, a member of the Royal Canadian Mounted Police (RCMP) in the Province of Ontario, make oath and say as follows: 1. I am a peace officer in the RCMP for the past 22 years with experience in major crime investigations and applications forjudicial authorizations. I have personal knowledge of the matters hereinafter set out, and I believe all of the information in this Information to be true. I am currently assigned to Sensitive and International Investigations within the National Division of the RCMP, responsible for investigating matters of significant risk to Canada?s political, economic and social integrity. My role in this investigation is that of the lead investigator, and as part of that role, to seek when appropriate, judicial authorizations. Throughout this Information, where I state my belief, that belief is based on my experience as set out above and on the other information in this Information. When I attribute a document or a report as a source of fact in this Information, I have read that document or report. OVERVIEW This application is in relation to an RCMP investigation into the activities of Senator Michael (Mike) Duffy, whom I believe has committed Fraud and Breach of Trust in relation to living expense claims, submitted in relation to his duties as a Canadian Senator. This investigation commenced in March 20i3, after several media stories were published in relation to the Senate referring travel and housing expense claims of Senators Mike Duffy, Patrick Brazeau, and Mac Harb to Deloitte, a management and accounting ?rm, for the purpose of an external audit. At issue were claims for travel and housing allowances in relation to where the Senators actually live. A Senator is eligible for certain housing and travel expenses while working in Ottawa, if their primary residence is located more than 100 km from the National Capital Region (NCR). Because of the extensive media coverage, and the mandate of National Division, 1 commenced this investigation in preparation of the release of the Deloitte reports. In May 2013, the Senate received and publicly released three Deloitte reports, one pertaining to each Senator being audited. My team then commenced a review of the three reports, as well as laws, rules, policy and guidelines which govern the Senators. We also monitored developments in the media. While the investigation focused on all 3 Senators, this application is speci?cally related to Senator Duffy. 5. During the period that Deloitte was conducting its audit, Senator Duffy publicly announced that he had repaid more than $90,000? in living expenses, citing unclear Senate rules for having made the claims. The Senate acknowledged his repayment to the ?Receiver General of Canada. After examining an 18 month period of expense claims, Deloitte produced a report ?nding that Senator Duffy referred to his cottage on Prince Edward Island (PEI) as his primary residence, and filed expense claims relating to the house he owns in Ottawa, claiming it as his NCR secondary residence. He therefore collected a housing allowance for that secondary residence. The Deloitte report found that there was a lack of clarity in the Senate regulations and guidelines when referring to primary and secondary residences. It did not conclude any fault on Senator Duffy?s part, but did provide a breakdown on where Senator Duffy spent his time, the majority being in Ottawa. 6. As a result of the Deloitte report, the Senate Standing Committee on Internal Economy, Budgets and Administration produced its own report, wenty?Sec0nd Report (Senate Report 22) which summarized the Deloitte report, and the ?nal findings of the Senate committee looking into the matter. The Senate report acknowledged that Senator Duffy paid back more than $90,000 in expenses, and that Deloitte was unable to assess the status of Senator Du ffy?s primary residence based on the Senate regulations and guidelines. It recommended that Senator Duffy?s expense claims be monitored for a period of not less than one year. Senate Report 22 was not critical of Senator Duffy, and did not ?nd any fault on his part. 7. Media reports then emerged that Senator Duffy had not paid back the $90,000 himself, and that it was in fact paid back by the Prime Minister?s then Chief of Staff, Nigel Wright. The reports claimed that there was an agreement, possibly a written agreement, between Senator Duffy and Mr. Wright, stipulating that Senator Duffy would publicly acknowledge making the claims in error and taking the personal decision of paying back $90,000. In exchange for this public acknowledgement, Nigel Wright would actually cover the cost of the $90,000, and the government would ?go easy? on Senator Duffy in its report. The circumstances of Senator Duffy?s acceptance of $90,000 from Nigel Wright are subject of this ongoing investigation. I am not making application in relation to that aspect of the investigation at this time. 8. Additional expense claim allegations emerged in the media prompting the Senate to conduct a further Senate review of Senator Duffy?s expense claims, resulting in a subsequent Senate report and a referral to the RCMP. 9. I previously obtained and served Production Orders for Documents and Data from the Senate of Canada, as well as ?nancial institutions. The documents and data obtained through those Orders are part of an ongoing forensic analysis by investigators, encompassing the time period that Senator Duffy has been in the Senate. Part of that analysis is determining where Senator Duffy lives primarily. The purpose of this application is to obtain hotel records in Prince Edward Island which i believe will show i The actuai amount is $90,172.24. For ease of reference, I will refer to this as $90,000 throughout this Information. that Senator Duffy stays in hotels during winter months while visiting PEI. I believe that those records will provide evidence of the names offences showing that Senator Duffy stays in hotels when visiting PEI during winter months, not his declared primary residence. 10. This investigation commenced as a Fraud Breach of Trust investigation relating to housing and travel expense claims of Senator Mike Duffy, and has since evolved to the following avenues of investigation: a. Fraud and Breach of Trust relating to Senator Duffy?s ?ling of expense claims for secondary accommodations in the National Capital Region b. Fraud and Breach of Trust relating to Senator Duffy tiling Senate expense claims for matters which were of political or personal nature, but unrelated to Senate business; c. Fraud and Breach of Trust relating to awarding of consulting contracts to a friend over a four year period, worth approximately $65,000, for little or no apparent work by that friend; d. Fraud, Breach of Trust, and Bribery relating the circumstances of Senator Duffy receiving approximately $90,000 from Mr. Nigel Wright for the purpose of repaying inappropriately filed expense claims. 11. This application relates only to sub-paragraph A above. Circumstances surrounding sub- paragraphs B, and above are subject of the ongoing investigation, however will not be addressed in this application. I mention this in order to avoid any confusion as this investigation has received much publicity over the past year. Chronology of Events 12. Mike Du ffy moved to Ottawa in 1971, where he lived and worked as ajournalist for 38 years.2 I conducted CPIC Ontario Paris driver?s license queries relating to Senator Duffy, and found that he has an Ontario license history dating back to November 16, 1971 which expired in May 2009. His license history also provides a history of his addresses dating back to i984, all of which are in Ottawa. His most recent address is listed as 47 Morenz Terrace, Ottawa, since July 2003. 2 Senate wet;-page Biography of Mike Duffy as it appeared on March 13, 2013. 4 i3. 14. 15. 16. 18. On December 22, 2008, Mike Duffy was appointed to the Canadian Senate by Prime Minister Harper, representing PEI3. According to the Constitution, one of the eligibility requirements for membership in the Senate is that Senators must own property and be a resident of the province they represent. On January 2, 2009, just days after his Senate appointment was announced, Senator Duffy was issued a PEI driver?s license with an address of 10 Friendly Lane, Kinkora, PEI. The license records that I have viewed contain a notation that he became a resident on December 22, 2008, the same date that it was announced that he was appointed to the Senate. He has served in the Senate as a representative from PEI since that time . Since 1998, the Senate has a policy that Senators who come to Ottawa to carry out their parliamentary functions, and who are more than 100 kilometers from their registered primary residence, are considered to be on travel status while in Ottawa, and may be reimbursed for eligible living expenses in the National Capital Region.6 The Senators? Livhtg in the NCR Guideiines state that a senator who owns a secondary residence in the NCR may be reimbursed for accommodation expenses at the rate set out in the Senate (rdzm'm'sIz-'arive Rides or in the Senator's 73-?ave? Gm'deh'nes for each day Such residence is available for the senator's occupancy, and providing that during such time it is not rented to another person or claimed as an expense by another senator. The senator is required to submit a proof of ownership of that secondary residence with the Declaration of Primary and Secondary? Residences form on a yearly basis (at the beginning of each ?scal year). On December 6, 2012, The Standing Senate Committee on Internal Economy, Budgets and Administration (Standing Committee) instructed the Senate Administration to conduct an audit to assess whether all Senators? declarations of primary and secondary residence are supported by sufficient documentation.7 . To determine primary residency, all Senators were asked to submit copies of: a driver?s license; a provincial health card; relevant information on their income tax return; a signed statement of where they Vote. According to a CTV News story dated February 4, 20i3 Senators had until January 31, 2013, to submit the primary residence supporting documentation. Prior to that deadline, a representative from Senator Duffy?s of?ce contacted the of?ce of the PEI Health 3 CBC news article dated December 22, 2008 4 Police indices query conducted by RCMP in PEI, at my request on March 15, 2013. 5 Senator Duffy is currently suspended from the Senate as ofNoVemher 20i3. 6 Statement of Senator Tkachuk on the report of internal economy dated February 28, 2013 7 Senate news reiease dated December 6, 2012. 5 Minister, Doug Currie, in an effort to expedite Senator Duffy?s application for a health card, rather than having to wait the mandatory three months. An RCMP Investigator has since interviewed Mr. Currie as well as his Administrative Assistant, Sandra Acorn, and Manager of Medicare at Health PEI, Charlie Allen. Ms. Acorn confirmed that Senator Duffy did call the office asking to speak with the Minister, who was not available. He proceeded to ask Ms. Acorn about the application process. Ms. Acorn was later contacted two more times that same day by Mary McQuaid from Senator Duffy?s of?ce, asking to have Senator Duffy?s provincial health card application expedited, assuring her that if it was it would be kept confidential. The application was not expedited. The exact date this occurred has not been determined, but appears to have been some time in December 2012.8 Ms. McQuaid has since been interviewed by investigators. She con?rmed that she did make inquiries on behalf of Senator Duffy, but denied that she asked to have the application expeditedg. [The website for Health PEI, which I have viewed, states that the PEI Hospital and Medical Services Plan is designed to provide coverage for eligible PEI residents. A resident of PEI is de?ned as anyone who is legally entitled to remain in Canada and who makes his or her home and is ordinarily present, on an annual basis, for at least six months plus a day in Prince Edward Island. Persons who establish permanent residence in PE from elsewhere in Canada will become eligible for insured hospital and medical services on the first day of the third month immediately following the month they became a permanent resident of 19. On February 8, 2013 the Senate announced that the residency declarations and related expenses of Senators Brazeau, Harb, and Duffy were referred to external auditors at Deloitte for review and report.? This caused significant media attention over the next several weeks, resulting in the RCMP commencing an investigation in March, to gather information available in the public domain through open sources, as well as through police indices, in preparation for the results of the Deloitte audit. 20. On April 29, 2013, The CBC reported that Senator Duffy issued a public statement that he repaid more than $90,000 in living expenses, prior to the completion of the Deloitte audit, and that he had repaid the money in March. The Senate issued a statement that day as well, which I have read, stating ?Senator Dzgf/?t has rer'mbm'sed the Receiver Genera! $90, I 72. 24 for /iving allowance e.rpenses?. 21. On May 9, 20l3 the Senate publicly released the Deloitte reports pertaining to Senators Brazeau, Duffy, and Harb, which I have read. There were three reports in total, one for each Senator. The remainder of this Information will relate only to Senator Duffy, and the related police investigation. For the remainder of this information, when 1 refer to a Deloitte Report, I am referring only to that which is in relation to Senator Duffy. Among its findings, the Deloitte report stated that existing Senate regulations and guidelines did 3 Police report of Cpl. Troy MacLean dated May 27, 2013 at 0930hours and 1001 hours. 9 Report of S/Sgt. Arbour dated September 19, 2013 at 1533 hours. 10 Senate news release dated February 8, 2013. 6 not contain criteria for determining ?primary residence?, and as such they were not. able to assess the status of Senator Duffy?s primary residence. I will speak further on this under the heading The Deloitte Report. 22. The Senate Standing Committee also released its own report (Senate Report 22) dated May 9, 2013 which summarizes the Deloitte report, and the final ?ndings of the Senate committee looking into the matter of expenses and housing claims. The Senate report acknowledged that Senator Duffy paid back more than $90,000 in expenses, and noted that Deloitte could not assess the status of Senator Duffy?s primary residence based on the Senate regulations and guidelines.? 23. On May 29, 2013 the Senate Standing Committee held a meeting which was open to the public, and broadcast on the Internet. I watched that meeting, during which additional expense matters pertaining to Senator Duffy were discussed. A motion was tabled and unanimously passed that the Senate refer the matter to the RCMP. A letter in that regard was subsequently received by the RCMP from the Senate dated May 30, 2013. With the letter was an amended Senate Report 22, the new report being identi?ed as Senate Report 26. The new report was critical of Senator Duffy. I have read these documents, and will discuss both of The Senate Reports later in this document. The Deloitte Report 24. As mentioned previously, Deloitte was retained by the Senate to examine expenses of Senator Duffy. Deloitte produced a report in May 2013, which I have read, and the following is a summary of the report and their ?ndings: a. Deloitte was retained by the Senate in order to undertake an examination of Senator Duffy?s living, allowance expense claims, including an assessment of his primary and secondary residency status; b. Deloitte was not engaged to, and did not perform a ?nancial statement audit, review or compilation for the purpose of expressing an opinion on historical ?nancial statements. They did perform a forensic examination which utilizes accounting and investigative techniques to provide an analysis related to issues identi?ed to them; c. Findings were based on rules and guidelines of the Senate, which include Senate Rules, Senators? Gm'deI:'nes, and Senator Living in the NCR Gzridelfzres; (1. Some of the documentation that they reviewed included declarations of Senator Duffy pertaining to his residences, property tax records, living and travel claims Senate report dated May 9, 2013. I11 . l1. and supporting documentation, cellular phone records, corporate credit card statements, and Senate attendance records; The period of time under examination was an 18 month period, between April 1, 20] 1 and September 30, 2012; Deloitte requested an interview with Senator Duffy, as well as certain ?nancial documents ??om him to assist in their examination, however he did not cooperate?; By relying on the cell phone records of Senator Duffy?s Senate issued cell phone, Deloitte auditors had to assume that Senator Duffy was the sole user of the phone, and that it was not in someone else?s possession; Senators, whose ?primary residence? is located more than 100 kilometers from the NCR, are entitled to a reimbursement of travel expenses, and a reimbursement of living expenses, while in the NCR for Senate business; The regulations and guidelines applicable during the period of examination do not include criteria for determining ?primary residence?. As such, Deloitte was not able to assess the status of Senator Duffy?s PEI residence as his primary residence; When assessing Senator Duffy?s location, Deloitte used the measurement of where Senator Duffy slept or spent the night, rather than where he was throughout the day; Based on the analysis of documents by Deloitte, they were able to con?rm Senator Duffy?s location for 94% of the time of the audit (515 days) and identified his likely location for another 3% (18 days). Only 3% of the days (16 days) was Senator Duffy?s location unconfirmed. It appears that Senator Duffy spent approximately 54% of his time in Ottawa, for Senate business or otherwise, and 30% of his time in PEI, at his primary residence or elsewhere. The majority of the time spent in PEI was during extended holiday months during the summer; The claimed travel by Senator Duffy between Ottawa and PEI did take place; A 17 day period was identi?ed during which Senator Duffy was in Florida, but claimed 12 days ofper diem, fora total of$1050,60, for Senate business in Ottawa; *2 The Deloitte Report notes that towards the end of the Audit process, Deloitte received an e-mail from Senator Dut?fy?s lawyer dated April 20, 2013, which contained a letter to Senator Tkachuck from Duffy, offering to meet with the Senate or Deloitte. The offer was declined by the Senate as it would delay the audit process which was nearing completion. 8 0. Senator Duffy submitted yearly declarations that his primary residence is located in PEI, during the 18 month period under examination; p. Senator Duffy?s travel expense claims related to living allowances in the NCR consist of claims for private accommodation in the NCR (for having the Ottawa property he owns available for Senate business), plus per diem amounts related to meals and incidentals. His claims during the 18 month period totaled $34,128. This total does not include the cost of travel for Senator Duffy between his residence in PEI, and Ottawa; q. With regard to the 4 criteria that Senators were required to submit (driver?s license, provincial health card, relevant information on their income tax return, and a signed statement of where they vote) Senator Duffy met only one, the PEI Driver?s license; During the 18 month period (549 days), Senator Duffy spent approximately 164 days in PEI. 121 of those days were during the summer months when the Senate was not sitting; [note: The Deloitte Report states that Senator Duffy spent approximately 30% of his days in PEI, however less than 8% of that time is outside of summer vacation months] s. The majority of Senator Duffy?s travel claims are for travel from Ottawa to Prince Edward Island and returning to Ottawa. In other words, the travel claims are for trips to go to the declared primary residence, as opposed to claims for travel from the declared primary residence to Ottawa in order to attend Senate business. Due to the distance, travel is by air, which is supported by boarding passes and other supporting documents for travel expenditures. Senator Duffy has travelled by car from Ottawa to in June of both 20] 1 and 2012, in both years returning by car approximately three months later in September. The Senate Reports 25. As previously mentioned, The Senate Standing Committee released its own report (Senate Report 22) on May 9, 2013 which summarizes the Deloitte Report, and the ?nal findings of the Senate committee. The Senate report acknowledged that Senator Duffy paid back more than $90,000 in expenses, and noted that Deloitte could not assess the status of Senator Duffy?s primary residence based on the Senate regulations and guidelines.? '3 Senate report dated May 9, 2013. at 26. On May 2013, after considerable backlash in the media, and other controversies 27. relating to Senator Duffy?s expense claims, the Standing Committee held an open meeting to discuss Senator Duffy?s expenses. As a result of that meeting, they adopted several amendments to The Senate Report 22, and published these amendments in a new report (Senate Report 26). The new report contained the following: ?Your aclmowledges Deloitte ?s_/inding that criteriafor determining primaijy residence are laclting and this is being addressed However, to claim living erpenses in the National Capital Region, any residence owned or rented by a senator must be a secondary residencefor nse by the senator while in the NC'Rfor Senate business. Your committee considers this language to be unambiguous; and plainly ifa senator resides priinarily in the NCR, he or she should not be claiming living expenses_for the at b. ?It is therefore the conclusion that based on the evidence presented in the eramination report, while recognizing that Senator Dn?fii owns a residence in P. E. I. and spends considerable time there, his continued presence at his Ottawa residence over the years does not support a declaration and is, therefore, contraijy to the plain meaning of the word ?priniai3i? and to the purpose and intent Qfthe provision ofthe Living Allowance in the NCR. c. ?That the Senate request that the proper anthorities examine the matters dealt with in this report and related inforination, including Senator Dig[?i?s' repayment of$90, I 72.24 to the Receiver General ofCanada, and that the Standing Committee on Internal Economy, Budgets and be (mthorized to refer such documents, as it considers appropriate, to the proper anthoritiesfor the purposes investigation. [As I stated previously, the matter of Senator Duffy accepting $90,000 from Nigel Wright is subject ofthe ongoing investigation, but not part ofthis application] Senator Duffv Expense Claims On June 26, 2013, I served a Production Order authorized by Justice Hugh Fraser for the purpose of obtaining documents and data from the Senate of Canada relating to Senator Duffy. Those documents include housing declarations, travel expense claims and supporting documentation, mobile phone bills, credit card statements, Senate attendance records, and records of expenses paid to and by Senator Duffy, since his appointment to the Senate. All ofthese documents are now being examined by investigators to conduct a comprehensive forensic analysis of Senator Duffy?s expense claims and expenditures. l0 28. 29. 30. 31. I reviewed the housing declarations of Senator Duffy. Senator Duffy submitted a Primary Residence Declaration to the Senate dated March 26, 2009, which states in part?: the Honourable Michael Day? I, member of the Senarefor the province or territory of Prince Edward Isiand declare that my residence is more than I 00 kilometres from Parh'amem Hi}! and that I therefore adch'tz'0riaI h'w'ng expenses white I am in the Nat:?onaZ Capitai Region to carry out my Senator Duffy identi?ed his primary residence on that declaration as 10 Friendly Lane in Cavendish, PEI. There is no requirement or space on the form to identify the secondary residence. The declaration form changed in 2010. Since then, Senator Duffy continued to identify his PEI property as his primary residence, and identi?ed 47 Morenz Terrace in Ottawa as his NCR secondary residence. Mark Grenon is a Chartered Accountant (CA) with a specialist designation in investigative and Forensic Accounting (IPA), a Chartered Professional Accountant (CPA), and a Certified Fraud Examiner (CFA) working with the Forensic Accounting Management Group of Public Works Government Services Canada and currently seconded to the RCMP National Division - Sensitive and international Investigations. He is overseeing the forensic analysis of Senator Duffy?s expenses, and has made a determination and told me that between ?scal years 2008/09 and 2012/13, Senator Duffy has collected $89,520 related to ?ling of iiving expense claims for his secondary residence in the NCRI5. On August 8, 2013, I served Production Orders authorized by Justice Bill Stewart for the purpose of obtaining documents and data from ?nancial institutions relating to Senator Duffy?s banking records. Those records included credit card statements of Senator Duffy. During the course of the investigation, Nigel Wright, former Chief of Staff to the Prime Minister, provided investigators with a binder labeled ?Cony?iderm'aI Senator Mike Dag" 2 Schedules 2009-2012?. The binder contains what appears to be a printout of Senator Duffy?s personal electronic calendar for the period of January 2009 to December 2012. The calendar is quite detailed and contains notes of Senator Duffy?s travel, meetings, teleconferences, social events, holidays, noteworthy current events, speeches, and political interactions. The binder was prepared by Senator Duffy and sent. to Nigel Wright in February 2013. Senator Duffy referenced this binder in an E-rnail provided to me by Mr. Wright dated February 20, 2013, where he stated ?Mary and I copied and redacted my 4 years of diaries; added a summary Qfmy days in (mdpics ofthe cottage under cohsa-?action etc. and sent it to Nigel by Parohvtor.? Mr. Wright turned the binder over to investigators through his legal counsel in August 2013. Joyce Hughes who works at the Minister Regional Office in Charlottetown has since been interviewed by investigators, and con?rmed that Senator Duffy and Mary McQuaid were in the of?ce on February 20, *4 Annual declarations with the same or similar wording were submitted every year after that and are dated or stamped by the Senate as June I, 2009, September 17, 2010, October 20, 2010, May 25, 2011, May 30, 201i, April 5, 2032, '5 Verbal confirmation with Mark Grenon on May 26, 2014. and May 22, 2013. ll 2013, compiling a package relating to schedules and photographs. She personally dropped the package off at Purolator on her way home from work that evening, and observed that it was addressed to the Prime Minister?s Office?. I have also obtained the Purolator receipt from the PMO which shows that it was sent on February 20, 2013 from Charlottetown, was addressed to Nigel Wright at the PMO, and was received on February 22, 2013 and signed for by David van Hemmen of tl1e PMO. When I interviewed Mr. van Hemmen, he didn?t speci?cally recall receiving the binder, but confirmed his signature on the receipt. 1 32. As part of this investigation, I have reviewed Senate expense claims ?led by Senator Duffy, credit card statements of Senator Duffy, and Senator Duffy?s personal calendar provided by Mr. Wright, in order to determine where Senator Duffy stays while in PEI during the winter months. Senator Duffy has previously stated during a CBC interview on February 22, 2013, that he stays at the Inn on Great George in Charlottetown during the winter due to convenient accessibility to the hospital. During my analysis, I have focused on the months of January through April during the years 2009 through 2012. The result of that analysis is set out below. 2009 33. Senator Duffy?s overnight visits to for January through April 2009 is summarized as follows: a. Senator Duffy?s personal calendar contains notations that he stayed overnight in PEI for 4 nights in January, 2009 (January 1, 2, 3, 30). The calendar contains a notation on January I of ?Storm stayed The Chrome? believe this to be a reference to he Charlottetown Hotel]. Senator Duffy?s CIBC Visa statement contains a transaction dated January 4, 2009, for $762.06 referencing The Charlottetown Hotel. Regarding the January 30 visit to PEI, Senator Duffy?s calendar contains a reference to meeting someone at the Charlottetown Hotel, and his CIBC Visa statement contains a transaction dated January 31, 2009, for $342.46 referencing the Charlottetown Hotel. There is also a memo on the Senate expense claim for this trip questioning why Senator Duffy expensed a hotel when visiting his home region. The response from his of?ce assistant stated in part home in Cavendish is not on the main highway, and when a winter storm hits, it's best to stay in (own; The house in Cavendish is snowed in,? Also, when his? visits are short (for the weekend or something) he prefers to stay dose)? to the airport in order to arrive on fime [Based on this, I believe that Senator Duffy stayed at the Charlottetown Hotel in Charlottetown during those visits] 16 Report of Cpl. MacLean dated April 15, 2014 at 1002 hours. 17 Senate expense claim T64-05404. 12 b. Senate expense claimsls show that Senator Duffy spent 5 nights in PEI during the month of February, 2009 (February 12, 13, 20, 21, 26). For the first visit of February 12 and 13, Senator Duffy?s calendar does not note where he stayed, however his Senate expense claim contains a receipt from the Delta Hotel in Charlottetown for both nights. For the visit of February 20 and 21, his calendar contains a reference to the Charlottetown Hotel on February 20, and a reference of ?Check cottage on the Pertaining to February 26, his calendar again makes reference to the Charlottetown hotel. The credit card statements that I have viewed do not contain transactions for the ?ve dates in February. [Other than the two nights at the Delta Hotel, I am not able to determine where Senator Duffy stayed during those visits to PEI. I believe that his calendar notation to ?check cottage? demonstrates that he was not staying there.] c. I have seen no documentation showing that Senator Duffy visited PEI during the month of March 2009; d. A Senate expense claim? shows that Senator Duffy spent one night in PEI in April 2009 (April 10). His personal calendar contains a notation that he stayed overnight at the Charlottetown Hotel. I-Iis CIBC Visa statement contains a transaction dated April I I, 2009 for $1 10.54 referencing the Charlottetown Hotel. 2009 January 1 The Charlottetown Hotel The Charlottetown Hotel January 2 The Charlottetown Hotel January 3 The Charlottetown Hotel January 30 The Charlottetown Hotel February 12 Delta Hotel February 13 Delta Hotel February 20 February 21 February 26 April 10 The Charlottetown Hotel The Charlottetown Hotel 010 34. Senator Duffy?s overnight visits to PEI for January through April 2010 are summarized as follows: a. I have seen no documentation showing that Senator Duffy visited PEI during the month oflannary 2010; - ?3 Senate expense claims T64-05415, 05414, 0541 t. '9 Senate expense claim I3 b. Senator Dt1ffy?s personal calendar contains notations that he stayed in PEI for two nights in February 2010 (February 26, 27), and that he stayed at the Charlottetown Hotel. Senator Duffy?s CIBC Visa statement contains a transaction dated February 28, 2010 for $302.72 referencing the Charlottetown Hotel; c. Senator Duffy?s personal calendar contains notations that he stayed in PEI for two nights in March 2010 (March 13, 14). The calendar does not contain a notation of where he stayed. His CIBC Visa statement contains a transaction dated March 15, 2010 for $306.04 referencing the Charlottetown Hotel. d. Ihave seen no documentation showing that Senator Duffy visited during the month of April 2010. 2010 Sunrmary February 26 The Charlottetown Hotel The Charlottetown Hotel February 27 The Charlottetown Hotel The Charlottetown Hotel March 13 The Charlottetown Hotel March 14 The Charlottetown Hotel 3.0.1.1. 35. Senator Duffy?s overnight visits to PEI for January through April 202 1 is summarized as follows: a. I have seen no documentation showing that Senator Duffy visited PEI during the month of January 201 1; b. A Senate expense claimzo shows that Senator Duffy spent three nights in PEI during February 201 1 (February 21, 22, 23). His calendar contains notations that he stayed at the inn on Great George during his visit, and his RBC Visa statement contains a transaction dated February 24, 201 1 for $372.34 referencing The Great George; c. Senator Duffy?s personal calendar contains notations that he spent three nights in PEI in March 201 1(March 4, 5, 17). The calendar references having stayed overnight at the Inn on Great George on March 4 and 17. Senator Dt1ffy?s RBC Visa statement contains transactions referencing The Great George dated March 6, 20ll for $256.38, and March 18, 2011 for $128.19. 20 Senate expense claim T64-18659 14 (1. Senate expense claimszl show that Senator Duffy spent three nights in PEI in April, 201 1 (April 12, 13, 30). His personal calendar contains notations that he stayed at the Inn on Great George during those three nights. His RBC Visa statement contains transactions referencing The Great George dated April 14, 201 1 for $232.86, and May 3, 201 1 for $419.85. [The May 3 transaction encompasses a hotel stay for April 30 to May 3] Summary February 21 Great George Great George February 22 Great George Great George February 23 Great George Great George March 4 Great George Great George March 5 Great George March 17 Great George Great George April 12 Great George Great George April 13 Great George Great George April 30 Great George Great George 36. Senator Duffy?s overnight visits to PEI for January through April 2011 is summarized as follows: a. A Senate expense clairnn shows that Senator Duffy spent one night in during the month of January 2012 (January 30). Senator Duffy?s personal calendar references attending a funeral, and staying at the Holman Grand Hotel. His CIBC Visa statement contains a transaction dated January 31, 2012 for $319.64 referencing the Holman Grand Hotel; b. Senate expense claims show that Senator Duffy visited PEI twice, spending six nights in PEI during the month of February 2012 (February 10, 23, 24, 25, 26, 27). During the February 10 visit, there is a notation in his calendar that he stayed at the Inn on Great George. Senator Duffy?s CIBC Visa statement contains a transaction dated February 1 1, 2012 for $129.33 referencing The Great George. During the second visit which commenced on February 23, there is a February 23 calendar notation referencing checking in to the inn on Great George. There is also reference to staying at the Great George on February 24. Senator Di1ffy?s CIBC Visa statement contains a transaction dated February 28 for $989.40 referencing The Great George; 2' Senate expense ciaims T64-18626, 18677 22 Senate expense claim T64-20166. 15 c. A Senate expense claim? shows that Senator Duffy spent three nights in PEI in March 2012 (March 23, 24, 25). Senator Duffy?s calendar contains notations on March 23 and 24 referencing staying at the Inn on Great George. His CIBC Visa statement contains a transaction dated March 26, 2012 for $352.41 referencing The Great George; d. A Senate expense claim? shows that Senator Duffy spent one night in PEI during the month of April 2012 (April 6). Senator Duffy?s personal calendar makes reference to staying at a hotel, but does not identify which one. His CIBC Visa statement contains a transaction dated April 7, 2012 for $1 17.47 referencing The Great George. 2012 37. In reviewing Senator Duffy?s calendar and credit card statements, there are other occasions throughout the year when Senator Duffy stayed at hotels in Charlottetown. The reasons for tl1ose stays could vary. My focus during this analysis was on the four winter months of December through April. While April may actually be viewed as a Spring month, I have included it in the analysis due to the accumulation of snow over the winter, making access to some areas of the province still difficult in April?. While December on average receives more snowfall than some winter I have chosen to not include it in my analysis because it is the beginning of winter, and the records I have reviewed show that Senator Duffy was only in PEI on two occasions (4 nights) in December over the entire four year period, one occasion being for his mother?s funeral. 38. Over the four year period of 2009 to 2012 during the months of January through April, 1 have identified 35 nights that Senator Duffy spent in PEI. Based on the documentation that I have reviewed, I cannot identify any night during that time period when he stayed in his cottage in Cavendish. On the contrary, the documentation shows that Senator Duffy 23 Senate expense claim T64-20147 24 Senate expense claim T64-20146 25 I was advised of the typical weather conditions in the area by Cpl. Troy MacLean who lives and works in PEI. 26 Government of PEI Internet website 16 January 30 Holman Grand Hotel Holman Grand Hotel February 10 Great George Great George February 23 Great George Great George February 24 Great George Great George February 25 Great George February 26 Great George February 27 Great George March 23 Great George Great George March 24 Great George Great George March 25 Great George April 6 Hotel Great George stayed in Hotels in Charlottetown during the winter, a fact that he has publicly acknowledged. This is supported by notations in Senator calendar, as well as by credit card transactions which are consistently dated on the day that Senator Duffy would have checked out of the hotel after his stay. Senator Duffy has collected almost $90,000 from the Senate, claiming that his primary residence is a cottage that he does not live in for at least four months of each year. During the 16 winter months that I examined, consisting of48i days, I could only identify 35 nights that he spent in PEI. Sunimarv of Investigation 39. This application relates to allegations of fraud and breach of trust pertaining to Senator Duffy claiming and collecting a housing allowance for what he contends is a secondary residence in the NCR27. He claims that his primary residence is in and that his house in Ottawa is an added expense endured because of his requirement to be in Ottawa to ful?l his parliamentary function. The Deloitte Report was a review of 18 months? worth of expenses and claims by Senator Duffy, in an effort to identify the location of his primary residence. Essentially it examined documents such as expense claims, phone bills, and credit card statements in an effort to identify where Senator Duffy spent the majority of his time or Ottawa) . While they concluded that the Senate regulations and guidelines do not include criteria for determining a ?primary residence? they did determine that Senator Duffy spent the majority of his time in Ottawa, and used his PEI residence mostly in the summer. The Senate Standing Committee later released Senate Report 26, which acknowledged that criteria for determining primary residence was lacking, but that language relating to when a Senator can make a claim for a secondary residence in Ottawa is unambiguous. They concluded that Senator Duffy?s continuous presence at his Ottawa residence does not support the claim that it is a secondary residence. They also concluded that his travel pattern was to travel from Ottawa to PEI and return, not the opposite, demonstrating that his home base is Ottawa. I too believe that Senator primary residence is in Ottawa, not PEI. While Senate rules and guidelines state that a Senator may be reimbursed for accommodation costs related to a secondary residence in the NCR, it doesn?t say they must file claims. The following points further support my belief: a. Senator Duffy has lived in Ottawa since i971; b. He had an Ontario driver?s license since 1971 and only applied for a license after being appointed to the Senate; 27 The Senators? Living Expenses in the NCR Guideiines state that a senator who owns a secondary residence in the NCR may be reimbursed for accommociation expenses at the rate set out in the Senate admz'm'sn*atz've Rules or in the Senator's Travel Guide?nes for each day such residence is available for the senator's occupancy, and providing that during such time it is not rented to another person or claimed as an expense by another senator. The senator is required to submit a proof of ownership of that secondary residence with the Declaiwiori QfPrimmy and Residences form on a yeariy basis (at the beginning of each fiscal year). 17 c. By his own admission, Senator Duffy receives ongoing treatment for a heart condition in Ontario23. To receive Ontario Health Insurance Program (OHIP) cove1'age, one of the requirements is that a pcrson?s ?primary place of residencemust be 01118110. As noted previously, Senator Dutty applied lo: a health card, and attempted to have the application expedited upon learning that the Senate was requiring all Senators to produce a health card from their home province to prove residency; cl. Senator Duffy listed his Ottawa address as his ?permanent residence? on his 2007 Canadian passport application. On his 2012 Passport Simoplitied Renewal, he listed his Ottawa address as his ?current home address?;3 e. Mike Duffy is listed as the Director of Mike Duffy Media Services Inc., an active Canadian Corporation since 1988, with corporation #2386852. The registered office address for that corporation is Senator Duffy?s Ottawa address?; By his own admission, he does not stay at his cottage in PEI during the winter months, preferring to stay in hotels in Charlottetown. This is fu1'tl1er substantiated by the facts as I have set out in this Information. Senator Duffy claims that his primary residence is a cottage in which he does not live in during the winter. 40. I am now making application to obtain a Search Warrant and Assistance Order to obtain 41. hotel records from The Great George Hotel in Charlottetown, PEI. Cpl. Troy MacLean, an RCMP investigator in who is assisting in this investigation has made inquiries with Ms. Rachel Vidito, general manager ofthe hotel. She has confirmed that they have records pertaining to when Senator Duffy stayed at the hotel, and that they retain their records for seven years. She confirmed that the legal name of the hotel is The Great George Hotel located at 58 Great George Street, Charlottetown, PEI, and that the records are computerized and are stored at the hotel.? I am proposing an Assistance Order for any person or employee of the hotel to provide assistance as is necessary to give effect to the warrant, which would include accessing any computer system at the hotel in order to search for data. Obtaining these records will provide further evidence and confirmation of when Senator Duffy stayed at that hotel, and assist in showing that he does in fact stay in hotels during the winter months while in PEI. 1 am seeking all guest registry records that the hotel has pertaining to Senator Duffy?s room rentals since his Senate appointment, until present date. Such information will include guest name, address, dates of stay, and payment in formation. 1 spoke to a manager at the hotel who told me that such information for each stay is referred to as a folio. I am not seeking any documentation beyond the room rentals 28 CTV News article dated February 22, 2013. 29 website on March 8, 2013. 30 I learned this by reading Senator Duft?y?s passport applications dated March 24, 2007 and February 6, 2012. 3 I learned this from a Corporations Canada website query dated June 5, 2013. 32 Report ofCpl. MacLean dated May 5, 2014 at 1344 hours. 18 such as restaurant charges. The expense claims I have viewed show that Senator Duffy often travels with his spouse, Heather Duffy. Because of that, I am seeking the same records pertaining to Mrs. Duffy as the rooms may have been registered in her name, in order to ensure that all relevant records are obtained. I have chosen a time frame of January 2009 to present date in order to obtain the most recent information. 42. Cpl. MacLean also conducted inquiries with the Charlottetown Hotel, identi?ed as a hotel that Senator Duffy used mostly in 2009 and 2010, however due to a change in their computerized booking, records are not available prior to May 2010.33 I previously set out the instances of Senator Duffy staying at the Charlottetown Hotel to demonstrate a pattern of him staying in hotels in Charlottetown during the winter months. 43. If authorized, Investigators in will make application to have this Search Warrant endorsed in that Province. Investigators will not conduct an intrusive search of the property, and will rely on the assistance of the hotel employee to provide the things sought. I am proposing an Assistance Order as part of this application requiring any person or hotel employee to provide whatever assistance is necessary to give effect to the Warrant. That assistance includes accessing any computer system at the place to be searched in order to search any data contained in or available to the computer system. To allow for time for investigators to have the Search Warrant endorsed in PEI, I am proposing a two day period over which the warrant can be executed. AFFIRIVIED BEFORE ME AT the city of Ottawa, in the Province of Ontario this day of May, 2014. 2. INFORMANT A FO HE PROVINCE or ONTARIO 33 Report of Cpl. MacLean dated May 15, 2014 at I3 I 8 hours. 19