Two former executives convicted in the St. Michael’s Hospital $300-million procurement fraud have been handed prison sentences.

John Aquino, the former CEO of now-defunct Bondfield Construction, was sentenced to seven years in prison, while Vas Georgiou, the former chief administrative officer at tge Toronto hospital, received a five-year sentence. The penalties were imposed by Justice Peter Bawden of the Ontario Superior Court of Justice.

The pair were convicted last year on two counts of fraud over $5,000 in connection with a construction competition for a major renovation at the hospital. The court also dismissed their attempt to reopen the trial over alleged judicial errors, noting that they are already pursuing appeals. Both remain free on bail pending those appeals.

The court found previously that beginning in 2013, Aquino and Georgiou engaged in secret communications to improve Bondfield’s chances of securing the project. Aquino provided Georgiou with an untraceable BlackBerry to exchange confidential information during the procurement process. The misconduct continued until the contract was signed in January 2015.

In sentencing, the judge said the actions of the two executives caused a direct loss of $2.5 million, representing bid-preparation costs incurred by competing firms PCL Construction and EllisDon, The Toronto Star reported. The fraud also led to extensive litigation costs. EllisDon ultimately took over the renovation project.

The court found Aquino more morally blameworthy, citing his destruction of digital evidence and his objective of securing an unfair competitive advantage. Georgiou was deemed less culpable, though the judge rejected any suggestion that his actions were justified by a belief he was acting in the hospital’s best interests.

The judge described the offences as grave and said they undermined public confidence in the integrity of Ontario’s procurement system. He noted that the scheme unfolded over two years and involved ongoing planning, with multiple opportunities for both men to halt their misconduct.

Both men are currently unemployed. Aquino’s engineering licence has been revoked. The court also found that they had shown an utter lack of remorse, referencing civil actions they launched after media reports exposed irregularities in the procurement process.

Crown prosecutors had sought seven-year sentences for both men, while defence counsel argued for terms of less than two years, maintaining there was no proven personal financial gain and no significant losses. The court rejected those submissions and imposed the custodial sentences.

Bawden previously ruled that the evidence of the two men’s dishonest actions “overwhelmingly” supported a conviction.

Bawden found that Georgiou gave Aquino advice on how to argue who should cover some expenses when the then-St. Michael’s executive would be part of a panel deciding the issue. Georgiou was also involved in the final selection of the contractor.

The judge found it “remarkable” that Georgiou referred to himself and Aquino as “we” when they were, in fact, officially representing different groups.

During hearings, court heard that Georgiou failed to disclose that the two men had been in business together. After learning of that relationship from a Globe and Mail reporter in 2015, St. Michael’s fired Georgiou.

Bawden said in his decision to convict the pair that he did not believe Georgiou’s testimony in his own defence. Georgiou claimed that he had not breached conflict-of-interest declaration rules and always acted in the best interests of the hospital.