It looked like Phil Sheegl would get away with receiving hundreds of thousands of dollars — some of which he split with former mayor Sam Katz — from the contractor he selected to build the Winnipeg Police Headquarters. 

A five-year RCMP investigation ended with no charges in late 2019, but Sheegl wasn’t off the hook for long. 

A few weeks later, the City of Winnipeg filed a civil suit alleging payment of secret commissions to Sheegl and breach of fiduciary duties. 

The city wanted its $250,000 severance payment back, the return of the $327,200 bribe from Caspian Construction contractor Armik Babakhanians, plus damages and legal costs.

The city won its case Tuesday and Sheegl has been ordered to pay $677,200 plus court costs that could total in the hundreds of thousands. 

Court of Queen’s Bench Chief Justice Glenn Joyal rejected Sheegl’s explanation that the $327,200 from Armik was for a 2011 land deal in Tartesso, Ariz. 

Sheegl said in his examination for discovery that Armik paid $327,200 for a 4.2 per cent interest in the Tartesso land.

“I note that at the peak of the market, before the crash of 2007-08, Katz and Sheegl had paid $47,000 for the equivalent interest,” Joyal wrote.

“This transaction with Armik was apparently completed on a handshake basis and no lawyers were engaged. Moreover, Armik apparently did not seek advice from an appraiser or the real estate agent regarding the 4.2 per cent interest.”

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