Five contractors in Brandon, Manitoba, plead guilty to conspiracy related to social housing projects

A Competition Bureau investigation revealed that the five individuals manipulated 54 contracts between 2011 and 2016  

GATINEAU, QC, Feb. 6, 2025 /CNW/ - Yesterday, five contractors in Brandon, Manitoba, pleaded guilty before the Manitoba Court of King's Bench for conspiring to divide up social housing refurbishment contracts among themselves. They each pleaded guilty to one count of conspiracy under section 45 of the Competition Act. They were ordered to pay a combined amount of $196,000 in fines.

Between December 2011 and February 2016, the five conspiring contractors manipulated 54 social housing contracts awarded by the Manitoba Housing and Renewal Corporation, for a total value of approximately $3.5 million. Their scheme allowed them to determine in advance which one would obtain the public contract and to establish the price of the project funded by taxpayers. The Manitoba Court of King's Bench sentenced them to pay the following fines:

• Geoff Gregoire – $61,000
• James Kauk – $53,000
• Guy Pringle – $33,000
• Doug Gunnarson – $25,000   
• Ryan Lamont – $24,000

An investigation by the Competition Bureau revealed the existence of this illegal agreement and led to criminal charges against the five individuals in December 2022.

Manipulating contracts to suppress competition is a serious crime, and it is even more concerning when it involves essential services and infrastructure projects for vulnerable populations, such as social housing. These schemes only ever benefit those who collude to increase their profits by driving up the price of public contracts to the detriment of all taxpayers. That is why cracking down on cartels is a top priority for the Competition Bureau, and we encourage anyone who suspects a business or individual of engaging in illegal agreements to report it through our Information Centre or online complaint form.

Quotes

"Collusion in public contracts allows a handful of unscrupulous businesses and individuals to profit at the expense of taxpayers. It also reduces the public funds available to respond to sometimes urgent and basic needs, such as affordable housing. That is why we are tirelessly fighting these illegal anti-competitive practices."

Matthew Boswell 
Commissioner of Competition

Quick facts  

• Collusion between competitors is a criminal offence under the Competition Act.
• When the Bureau obtains evidence that a criminal offence has been committed, it refers the case to the Public Prosecution Service of Canada (PPSC). The PPSC then decides whether charges should be brought and is responsible for any resulting prosecution.
• Any person who believes that they are involved in an illegal agreement with their competitors may submit an application for immunity or leniency in exchange for their cooperation in the Bureau's investigation through the Immunity and Leniency Programs.
• The Bureau also has a Whistleblowing Initiative for individuals who believe they can provide information about a potential violation of the Competition Act. The Bureau will keep the identity of the whistleblower confidential.
• The Bureau strongly encourages anyone who suspects a business or individual of engaging in illegal agreements, such as bid-rigging, price-fixing, market allocation, restricting supply, or wage-fixing and no poaching agreements, to report it through its Information Centre or online complaint form.

Associated links

• Contractors in Brandon, Manitoba, charged with conspiracy related to social housing projects
• Bid-rigging, price-fixing and other agreements between competitors
• Avoiding business collusion and bid-rigging
• Preventing bid-rigging: Tips for tendering authorities
• Bid-rigging: Compete legally!

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

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