A former hospital executive and the ex-president of a major Ontario construction company have been convicted of fraud for their involvement in the bidding process for a $300 million expansion project at a downtown Toronto hospital.
Vas Georgiou, the former chief administrative officer at St. Michael’s Hospital, and John Aquino, the former president of Bondfield Construction, were found guilty of two counts each of fraud over $5,000 in a Toronto courtroom on Tuesday.
According to Superior Court Justice Peter Bawden, the evidence overwhelmingly shows that the defendants engaged in dishonest actions throughout the procurement process. Georgiou provided Aquino with insider information through secret emails, which was deemed confidential and highly material to help Bondfield secure the procurement. Justice Bawden emphasized that such behavior was objectively dishonest and compromised the integrity of the public procurement process.
The judge highlighted that the defendants’ misconduct jeopardized the entire tendering process for public construction projects. He stressed the importance of public confidence in the fair and competitive use of public funds for infrastructure projects, stating that corrupt actions at senior levels could undermine trust and deter qualified bidders from participating in future projects, ultimately harming market integrity.
Aquino, upon hearing the verdict, responded with a strong expression, while his lawyer, Alan Gold, mentioned that they would carefully review the judge’s reasons for any potential legal concerns. Georgiou’s lawyer, Peter Brauti, refrained from commenting until the sentencing phase.
The prosecution alleged that between 2013 and 2015, Georgiou and Aquino colluded to manipulate the procurement process in favor of Bondfield, a prominent player in public construction projects in Ontario. The Crown presented evidence of a pre-existing relationship between the two men, including shared business interests, and communication related to the bidding process that allegedly created a conflict of interest.
While the defense argued that procedural rules may have been breached, they contended that it did not result in unfairness or increased costs for the hospital expansion project. The trial spanned over a month, featuring testimonies from executives in the hospital and construction sectors, with Georgiou also defending himself on the stand.
Aquino was dismissed from Bondfield in 2018 amid financial troubles that led to the company’s insolvency in 2019, causing disruptions in various construction projects. Auditors later uncovered a scheme involving Aquino and others diverting millions of dollars from the company before its collapse, leading to legal battles and bankruptcy proceedings.
The expansion work at St. Michael’s Hospital, initially scheduled for completion in 2019, faced delays due to the company’s financial turmoil. The project includes a new patient tower, additional operating rooms, and an expanded emergency department. Georgiou parted ways with the hospital in 2015 following reports of undisclosed ties to Aquino during the bidding process.
