The former CEO of now-defunct Bondfield Construction and an ex-St. Michael’s Hospital executive have been found guilty of fraud for their roles in a multi-million-dollar procurement scandal.

An Ontario court judge ruled that Bondfield’s former CEO, John Aquino, and Vas Georgiou, who previously served as chief administrative officer at St. Michael’s, collaborated secretly as the company received a contract to develop a new version of the hospital. Due to the scandal, the project’s construction has been delayed for seven years. Originally slated to be built in 2019, it is now scheduled for completion in 2026.

Both Aquino and Georgiou had pleaded not guilty to charges of fraud over $5,000. They could face up to 14 years in prison, pending the outcome of possible appeals, after being convicted of defrauding St. Mike’s and Infrastructure Ontario, the province’s infrastructure-development agency.

According to multiple media reports, Ontario Superior Court Justice Peter Bawden ruled that the evidence of the two men’s dishonest actions “overwhelmingly” supported a conviction. The media reports quoted Bawden’s written decision. 

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 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.

EllisDon replaced Bondfield as the lead contractor for the project in 2019. The hospital has remained open during the construction work.