a blog about news and politics by steve janke
 

Liberal MP Blair Wilson unfit for office, friends and family say

Liberal MP Blair Wilson, the national revenue critic in Stephane Dion's shadow cabinet, is facing some extraordinarily serious allegations. The man whose job it is to keep an eye on how the government collects our tax money is alleged to have borrowed and misspent literally millions in the family fortune. He is also alleged to have signficantly under-reported campaign expenses, running his election campaign on cash payments with no supporting receipts. Indeed, the questions are so serious, and the supporting evidence so compelling, that the Liberals have referred the matter to the party committee that evaluates potential nominees for suitability for public office.




Blair Wilson is the Liberal MP the riding with easily the clumsiest name in the country, West Vancouver--Sunshine Coast--Sea to Sky Country.

Say that three times fast. Heck, say just it once, slowly.

You might have to learn how to, since Blair Wilson might be in the news for a bit. Blair Wilson is the national revenue critic for the Liberal Party under the leadership of Stephane Dion. Stephane Dion has expressed his confidence in Wilson by assigning him that role, but not everyone thinks Blair Wilson is suited for public office, as is being reported in print in today's The Province. It is an extended investigation, spread over three pages. I'll try to hit the highlights of this story (update: the full story is now online):

[West Vancouver real estate mogul Bill Lougheed thought he knew his 44-year-old son-in-law. After all, Wilson had been married to his stepdaughter, Kelly, for more than 17 years. But a few months ago, Lougheed had a rude awakening.

After losing his wife of 35 years, Norma (Kelly's mother and stepmother to Bill's four children by his first wife), to cancer in May, the grieving widower began to go through the meticulous records his late wife kept as the manager of the family's accounts.

What he found came as a shock.

Bill knew they had helped the Wilsons to buy six homes and recreational properties over the years, but was always told by Norma the couple was making payments.

In fact, the Lougheed family could find little evidence in going through accounting records, cheques and financial documents that the debts were paid in full. And they were shocked to learn some properties had been sold while money was still owing to the family. Others had been mortgaged to the hilt: They found the Wilsons had more than $2 million in bank loans.

Bill Lougheed has no idea what Wilson and his wife have done with the roughly $4 million total in loans and mortgages they have taken out on these properties.

The family assumes some went into capital and start-up costs for Wilson's many troubled businesses, some into playing the stock market, some on his family's lavish lifestyle -- horses, designer clothes, society events and travel.

They believe Wilson's family and business dealings refute his public assertions that "as an entrepreneur and businessman I'm fiscally responsible."

The Lougheeds also paid for the Wilson children's private education at Collingwood School. But when Wilson pulled his grandson out in 2004, Lougheed said no one ever told him that Wilson had the tuition refund cheque for $17,310 made out to himself and his wife.

The final straw for Lougheed, he says, was when Wilson asked his mother-in-law for money on her deathbed. Lougheed has a copy of a cheque Norma wrote Blair for $22,840.82 on April 27, 2007, just a month before she died from cancer.

In totalling the funds the Wilsons received from the Lougheeds over the years, the accountant listed $2,391,986 in loans and mortgages, $1,928,309 in dividends paid out through a trust, $375,036 in cash transfers from Lougheed accounts (Norma paid for $3,000 in liposuction and surgery, $5,000 in bank overdrafts and a $19,440 membership fee for the Hollyburn Country Club, for example), plus jewelry from Norma's estate -- including a nine-carat Birks diamond worth an estimated $2 million.

Bill estimates he's owed $1.9 million for various properties and mortgages, plus $200,000 he invested in Wilson's company. He wants all the money repaid. And the Lougheeds want the public to know that the man they voted in as their MP isn't who he seems.

Blair Wilson has responded to say he believes his father-in-law has been affected by the passing of his wife:

"The whole family is going through difficult, emotional and trying times. And when you combine the emotional difficulties with just the sadness that is felt by all, certain other matters cloud people's judgments. I don't know what motivates different people, but there is a great deal of emotional upheaval in the family when a loved one is lost," Wilson said.

"This is a Lougheed family matter between my wife and her stepfather and at this emotionally difficult time the family is trying to work through it."

But it's not just Bill Lougheed, and it's not just the family finances. This riding was won by a slim margin of votes, and serious allegations about the way Blair Wilson ran and financed his campaign have been raised as well. Furthermore, the issues are serious enough to re-evaluate whether Wilson met the high ethical standards required of Liberal Party nominees. Indeed, this stuff is so serious, Wilson could lose his seat:

B.C. Liberal organizer Mark Marissen told The Province he recently was passed documents that he submitted to the party's green-light committee, which vets candidates.

If proven true, the allegations would represent a serious breach of the Elections Act and could bring penalties of fines, prison time or a restriction on being "entitled to be elected or to sit in the House of Commons."

Among the allegations against Wilson, The Province has learned:
  • Wilson did not report campaign expenses to Elections Canada and paid for supplies off the books, in cash, a breach of the act.
  • Wilson and his wife, Kelly, borrowed roughly $1.9 million from his in-laws to purchase six properties, and much remains unpaid despite the fact they have sold some homes.
  • Wilson and his wife were subject to Social Services Tax Act liens on three properties and owe $2.1 million in bank mortgages.
  • Wilson misled the media about the true extent of his business success, exaggerating the number of restaurants he founded and claiming to have sold an accountancy business his in-laws claim closed, among other discrepancies.
  • Wilson lost hundreds of thousands of family investors' money in the stock market and yet billed them for management fees.
  • Wilson's two restaurants, Mahoneys and Wilson's Steakhouse, closed. He was taken twice to the B.C. Employment Standards Tribunal for refusing to pay employees, was sued twice for failing to pay contractors, was twice compelled by the courts to pay GST owing, and was also taken to court by a supplier over $33,839 that was owed (this amount was later paid).
  • Wilson bought extravagant gifts for a girlfriend in Poland while working for a restaurant chain called Pan Smak Pizza Inc.

Let's expand on that first bullet, the question of Blair Wilson's campaign expenses. That's a story all in itself:

Veteran Liberal campaign manager Elizabeth Wood knows running a campaign in the West Vancouver-Sunshine Coast-Sea to Sky Country electoral district is tough. The riding is the fourth largest in Canada in terms of geographic area. That means higher travel, advertising and office expenses -- including rent and staff for offices in West Vancouver, Whistler, Squamish, Powell River and Sechelt -- paid with the same per-capita-based budget formula as smaller ridings.

So when the Sechelt resident signed up to run Wilson's campaign in June 2005, she knew budgeting would be a challenge, but she had run campaigns three times before. And if anyone was up for the task it should have been Wilson, who, as a chartered accountant, stated in a campaign brochure that "I know that being fiscally responsible and accountable is how government must be run."

Wood's modest budget totalled $80,986, leaving a cushion to keep the total below the Elections Act limit of $93,260.52.

"I had done a budget for Blair near the end of the summer," she told The Province. "I'm a real stickler about the rules and regulations for the campaign. Blair didn't like it."

Wood alleges Wilson conquered this vast riding by spending lavishly; failing to declare rent discounts as donations as required by law; accepting, but not accounting for, items such as umbrellas and fleece jackets; omitting payments for brochures and business cards, auto-dial phone services and Canada Post drops; and paying cash and failing to leave a paper trail of dozens of office expenses.

She claims that the week the writ was dropped (the campaign ran from Nov. 29, 2005, to January 23, 2006), she, Wayne Rowe, who was being considered for the role of official agent, and her conservative budget were tossed out. She was replaced with a man Wilson met at a Liberal convention in Richmond named Guillio Vilas.

"Blair just said: 'I've made up a new budget and I've taken over the finances and you can keep the title of campaign manager.' And I said, 'I'm sorry, you can't do that. You can't run your own campaign.' And he just said, 'That's what I'm doing.'"

Many of Wood's claims are documented. She provided The Province with internal campaign e-mail correspondence between campaign staffers that indicates several outstanding expenses.

Over and over again, money was spent but not accounted for:

For example, Wilson was offered West Vancouver campaign office space at 1868 Marine Drive for a total of $6,360 for two months. Yet the cost for regular long-term tenants was $11,000 per month, according to owners Ocean Walk Holdings. Candidates are required to report commercial charges for services on their Elections Canada filings even if they receive discounts. Wilson did not appear to include the discount in his filing.

There are other discrepancies.

According to e-mail correspondence between staffers, printing costs for 60,000 brochures were estimated at $6,650 in a Dec. 5 quote from Vancouver's DPI People. Yet nowhere in Wilson's election filing is DPI People listed as a supplier. Wood alleged Vilas told her they had also handed out an additional 40,000 brochures.

Campaign staff e-mails indicate Wilson received a donation of 60 branded umbrellas for the campaign with a commercial value of $3,531 plus tax. The umbrellas were donated by the TAG Group, according to e-mails between company donor Spencer Gray and Wayne Rowe. There is no line item for this.

The former campaign manager also observed staff had Blair Wilson-branded fleece jackets made, which key organizers were seen wearing in photographs. Vilas stated they cost approximately $150 each. They were ordered for at least eight people for a minimum total of $1,200, Wood said. There is no indication these were accounted for in the Elections Canada filing.

People are alleging that Guillio Vilas insisted on paying people in cash, issuing no receipts. Johanna Tuin is just one example:

Johanna Polman Tuin, a Powell River organizer for Wilson in both his campaigns, said she didn't have to submit office supply receipts to the official agent and wait to be reimbursed. She was given cash for her expenses directly from Vilas.

"It was Guillio who ran the show. Who he was, I don't know. I just know that I got cash for my expenses," Polman Tuin said.

Now before you ask just how is it that this is all coming to the surface now, know that questions have been asked for some time, and there has been turmoil in the riding as a result:

After the election, she said, Wilson seemed to desert the riding and the local executive quit en masse as questions began to surface.

"We didn't want nothing to do with Blair. I think the campaign was a strange situation. I'd never run a campaign like that. I didn't like the way it was run. I'm just disappointed," Polman Tuin said.

"I certainly did notice financial irregularities," said former Powell River organizer Laurie McNeill.

Wilson's former communications director, Christopher Bennett, who had worked for Wilson since 2004 (he is now with the Green Party), also quit when he thought the campaign was going awry.

"I think Blair's a guy of incredible passion and he loves his riding. He's devoted and he wanted that job more than anybody," Bennett said.

"But there were some personalities that came into his campaign that I didn't care for. You could say Guillio . . . This Guillio guy came in and it all started going weird."

People are coming to the conclusion that Blair Wilson is simply unfit for office:

Having seen Wilson's conduct in Powell River and having reviewed information about his financial dealings, Powell River riding member and former B.C. Liberal Okanagan East MLA Judy Tyabji said she doesn't feel Wilson is fit for office.

"I don't believe he's the right person to be representing the riding. I think that when you come forward to serve the public, you have to be acting in a way that is consistent with what you say you represent," Tyabji said, noting she has taken her concerns to people in positions of authority in the party.

"I haven't come to this decision lightly," she said, "but from what I have seen with my own eyes, I don't believe that Blair's standards of financial conduct are consistent with good public service."

Wilson, for his part, is either denying the allegations, or holding his tongue pending an official declaration of an investigation from Elections Canada.

Quite the story, but this is just the first part. Tomorrow The Province will be running part two, in which "Wilson's business partners speak out about the MP's role in businesses that ended with acrimonious lawsuits".

You know you've got problems when a newspaper has to run the allegations in a two-part series.

Follow-up: What will Stephane Dion do about Blair Wilson?

[A much abbreviated online version of the Blair Wilson story is in today's Times Colonist.]

Addendum: The questions have been raised on blogs too. On October 19, North Vancouver Politics reported on Blair Wilson's appointment as national revenue critic. Here are some of the posted responses:

Anonymous: You're kidding right? Didn't he have to close Wilson's Steakhouse because of bankruptcy and tax issues? Talk about putting a fox in the hen-house... well, at least outside the hen-house... criticizing it.

Short temper: LOL. Tell me this is a joke.

Investigation: Blair Wilson is in serious glue, as is his Campaign Manager John Moonen. Evidently not are his campaign finaces(managed by Moonen after the first campaign manager quit over money issues)in question, but his Wilson's disasterious business history is slowly comming to light. He's hurt a lot of folks.

Anonymous: Obviously, Dion is not aware of Blair's well-known financial troubles, perhaps Dion is clueless in more ways than one.

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Comments

Where do these people get the idea to enter politics? Do they feel they'll be able to continue with less than stellar practices and get away with it? Is that how low politics has fallen in this country under decades of Liberal rule?

Looks like Dion is just simply not in sinc with mainstream Canada either, he has no bloody clue about most of the country and it's people.
Appointing this dude as National Revenue critic is more proof of his incompetence.

Posted by: Libby at October 28, 2007 08:33 AM



Appointing this dude as National Revenue critic is more proof of his incompetence.

Certainly it would be a serious embarrassment for Stephane Dion, assuming the allegations hold up. And the Liberals would be taking a hit in BC in addition to the problems in Quebec.

Posted by: Steve Janke at October 28, 2007 08:41 AM



're-evaluate whether Wilson met the high ethical standards required of Liberal Party nominees'? Does this mean that Liberals only become criminals AFTER they are elected?
This is something I constantly ask--do corrupt people gravitate to politics or does politics corrupt previously honest people? In this case I think the politician honed his skills before entering politics--he just refined them after getting the nomination. Begging money from a dying woman--how low can anyone go? Of course, I guess that is what estate taxes are also? This report, if proven true, jsut indicates what a sewer our governments have become.

Posted by: George at October 28, 2007 09:00 AM



heckuva post, Steve!

Posted by: at October 28, 2007 09:29 AM



So, let me get this straight...

He lives a lavish lifestyle by using other people's money as if it were his own. When questioned about it, he attempts to deflect attention by blaming others and by telling half truths and out and out lies. He attempts to maintain plausible deniability by employing shady characters to undertake the actual hands-on dirty work such as the transfer of cash payments for services rendered.

I think I have the essence of the story down. The only part I don't understand is why anyone would think this guy is unfit to represent the liberal party of Canada. He is, indeed, a true liberal.

Posted by: Rob R at October 28, 2007 10:43 AM



"Wilson bought extravagant gifts for a girlfriend in Poland while working for a restaurant chain called Pan Smak Pizza Inc."

I'd say this is what did him in. heh, heh

Posted by: muttsrus at October 28, 2007 10:58 AM



If Judy Tayabji ( who herself is married to another Liberal named Wilson) declares him unfit for public office, it must be pretty bad. She is no "lily white" either.

Posted by: Louise at October 28, 2007 11:30 AM



Muttsrus: So you think it may be an inside job?

Posted by: Libby at October 28, 2007 12:15 PM



The liberals and their malfeasance really fright en’s me. What they project as an organization and Canada's future generations is truly disgusting.

Posted by: missing link at October 28, 2007 12:15 PM



Family, I get, but who are the "friends"? So the mother-in-law did all the finances, covered for her daughter, and when the mother died, the father finally learned the truth (assuming he is right) and now Wilson&wife and her father are estranged. Pretty sad. So far the wife seems to be siding with her husband, but with gifts to girlfriend in the newspapers, who knows? Yucky family stuff even to read about as a stranger.

On the other hand, the Elections Canada accusation is really serious (as a public matter) and Dion should remove the guy from his cabinet post until that investigation is done. What is it with West Van? The guy Wilson ran against had some shady background with money/stocks too.

Posted by: catherine at October 28, 2007 05:54 PM



I think you right Catherine in that the two sides to Wilson's problems certainly have different qualities. The problems with his family could be argued to be private, though the sheer size of the debt and how the debt was dug (allegedly because Wilson liked to live the high life) speaks to his ethical compass, and the Liberal Party certainly has the right to evaluate MPs and nominees on that criteria. Less so a government bureaucracy.

But the questions of the way the campaign was run and paid for clearly fall into the mandate of Elections Canada, and if the preponderance of evidence supports the allegations, Stephane Dion could move quickly and decisively to isolate Wilson from the party pending a final resolution.

Of course, Blair Wilson could offer his resignation in order to avoid more embarrassment for the party.

Posted by: Steve Janke at October 28, 2007 06:06 PM



Steve,

This goes back (again) to your previous posting about what the Liberals stand for - the acquisition of power and/or money. As was pointed out by Rob R., he is a fine example of an LPC member.

Posted by: Tom at October 28, 2007 07:07 PM



Knowing how closely Garth follows your posts Steve, I have been waiting all day for him to weigh in with some breathless prose protesting how you are misrepresenting matters on the Wilson file.

Are we to intrepret his silence as confirmation that perhaps even Garth has his limits when it comes to defending the shenanigans of some of his Liberal Party colleagues?

Posted by: stephen p at October 28, 2007 09:28 PM



Reassuring to see that Dion responded swiftly and decisively until Elections Canada can do their work. A big difference between how Dion and Wilson have responded and how Harper and the Conservatives have responded. Harper is suing EC for the second time (first time he was unsuccessful) and the statements being issued (such as we can decide ourselves what is advertising for a riding and advertising for a party) are very disappointing. I don't vote either Conservative or Liberal, but the Conservatives campaigned on being so much better and their response on these matters is much worse. They had to correct numbers at EC's request, they delayed in getting EC the required documentation, some involved have said they were given no choice or thought the money was for national expenses, the Conservatives clearly tried to use a scheme which goes right to the top and is system-wide, and, if it were allowed, the rules which distinquish between riding and national expenses would be a joke. They figured out a way to circumvent the rules, and seem damn proud of themselves in doing so. It didn't make me so mad until I saw how Dion responded immediately to one individual case of allegations, even though by combining it with matters of family loans and gifts to a girlfriend, did make it look a bit like a vendetta. Which party is the hypocrite now?

Posted by: catherine at October 29, 2007 02:36 AM



Nice try Catherine.

The Libs have been trying to kick a dead horse and really have no idea why it's not responding.

How Blair Wilson conducted himself is dispicable, and the fact that he clearly and specifically lied to voters in the riding about his business life on his resume' (it's right there on his campaign literature) is inexcusable. He's a fraud.

The EC issue is really secondary - but that too is damning. No one pays cash in a campaign EVER if they plan on reporting it. It displays a clear willfulness of ignoring EC rules on financing.

But again - look at his record of lies, his unbelievable record of business failure and his shameless promotion of himself.

Posted by: dale at November 6, 2007 02:30 AM



Blair's financial problems were well documented by Trevor Lautens a couple of years ago. Bill Lougheed revelations only fill in the details.
The sad part about Wilson's win was the man he defeated, John Weston. Integrity is only one superlative that can be used to describe John.
Hpefully the riding will get it right next time.
Here is another item Elections Canada has never investigated. Nicholas Simons,NDP, who ran against John Reynolds and Blair Wilson, used his Federal campaign signs when he won his MLA's seat. He was using everything from lawn to 4 x 8 signs in full federal NDP colours that didn't match the provincial NDP signs. Now all this material would have received subsidization from the reimbursement of expences under the Federal Elections Act. So in fact every taxpayer in Canada helped finance (in a minute why) Simon's provincial campaign.

Posted by: John at November 10, 2007 10:37 AM



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