TORONTO – The LCBO has gone to the Ontario Superior Court to freeze the bank accounts of two of its employees who they are saying swindled nearly 2 million dollars from the liquor board.
The two accused employees were responsible for a little known program that sells alcohol to people with diplomatic status – without tax and duties.
The LCBO, in sworn affidavits trying to freeze the employees assets - details a massive case of fraud featuring fake diplomats and mysterious foreign transfers. None of the claims have been proven in court.
The LCBO claims 58-year-old Francois Agostini, who lives in Rexdale, ordered products and then never handed over the cash.
The affidavit by the LCBO claims that, "from April 2005 to December 31 2011, approximately $1.6 million worth of product was shipped to the Toronto warehouse but the proceeds were not remitted."
Also named in the documents - a part time waitress named Andrea Smallwood - who posed as a member of the Ukrainian consulate named Svetlana Petrovska.
The LCBO say she was Agostini's accomplice in the fraud.
None of the LCBO allegations have been proven in court.
The LCBO says it has removed Agostini from the workplace and significantly changed its practices related to diplomatic sales to eliminate the possibility of any further fraudulent activity of this nature occurring again.
Agostini - who along with Smallwood are under investigation by the OPP - returns with the LCBO to court on Feb 1.
Global News