The City of Winnipeg says the contractor in charge of building the Winnipeg Police Service headquarters used the project to settle outstanding debts with subtrades for money owed on other construction projects, new court filings reveal.

They also say lead contractor Caspian Construction modified invoices to pay for “personal home improvement projects.”

“We see instances of subtrades being paid by [Caspian] for supposed work many months, and indeed sometimes years, after the work was completed (if ever the work was completed) and after subtrade invoices have been issued to the city,” City of Winnipeg lawyers Michael Finlayson and Gabrielle Lisi wrote in a brief filed in the Manitoba Court of Queen’s Bench on June 13.

The city launched a civil lawsuit against dozens of people and companies involved in the police HQ construction project, including lead contractor Caspian and its owner, Armik Babakhanians, in January 2020.

The city alleges a scheme to inflate and overcharge the city for construction costs through fraudulent quotes and invoices, altered quotes from subcontractors and kickbacks.

The project was completed in 2016, years behind schedule and more than $79 million over budget. The RCMP launched a criminal investigation into the project in 2014, which was closed in late 2019 with no charges laid.

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