Former Health Canada Boss Charged in Treatment Center Scandal

RCMP expect to lay more charges soon

By Len Kruzenga

The former head of Health Canada in Manitoba has been charged with fraud as a result of a sweeping investigation started over two years ago into the financial affairs of the Virginia Fontaine Addictions Foundation (VFAF), which operated on the Sagkeeng First Nation.

Paul Cochrane, 56, is accused of accepting bribes from the foundation, which his department, the First Nations and Inuit Health department was responsible for funding and overseeing.

Among the accusations contained in the charges-seven counts of fraud and one count of breach of trust-are that Cochrane took bribes from the centre's executive, including vacations, SUVs for himself and family members, free tickets to NHL hockey games and received false tax-receipts.

The VFAF was shut down two years ago after revelations that staff from the centre used taxpayer's dollars to finance a Caribbean cruise in 2000. Cochrane took part in the cruise and was immediately ordered to return to Canada by Health Minister Allan Rock after the debacle made national headlines.

Cochrane later lodged a grievance against Health Canada seeking reimbursement for nearly $7000 he claimed cost him to cancel his trip. The claim was rejected.

When Rock ordered an extensive audit of the center and operations at the First Nations and Inuit Health branch in Manitoba and overcame court action by the VFAF executive director and board members intended to block the audit Cochrane resigned from his $150,000 a year job.

A BDO Dunwoody audit conducted on the VFAF found, among other things that during an 18 month period over $1 million was paid by the center to companies owned by relatives of the foundation's management.

But at least one RCMP source says charges against former VFAF staff are expected to follow in the next two months.

The RCMP has executed over 50 search warrants in Manitoba, Ontario and Quebec during their investigation.

The centre's former chief executive officer Ken Corchene, hired last summer by the Manitoba government as a magistrate for the area, and former VFAF board president Perry Fontaine have been named in a $2.5 million lawsuit by the federal government in an attempt to retrieve some of the funds the government alleges were mismanaged by the centre's executive and top administrator.