Police investigating ‘envelope of cash’

Coun. Gary Burroughs has released a statement about an incident he refers to as “now well-known,” an issue he understands has been a topic of conversation amongst the public, some of it based on fact and some relying on rumours.

The incident, he says in his statement, occurred more than a month ago involving him and developer Benny Marotta, “which I reported to the town and is now subject to an investigation by Niagara Regional Police. I have been instructed not to comment further while the incident is under investigation. At this time, however, I am compelled to clarify a few salient facts pertaining to this issue.”

Burroughs told The Local he has had people questioning why his story has not been told in this paper. The answer is that having been advised early on not to talk to the press, he had asked that anything he said be off the record — not a legal term, but one that is widely respected for ethical reasons.

The details Marotta shared with The Local in response to the events of March 4 — as Burroughs says in his statement, “not March 11, as has been previously reported,” are very similar to the details Burroughs shared.

On that Saturday, Marotta asked Burroughs to meet him at Two Sisters Winery, and the councillor agreed.

“It might seem crazy, but I hoped I could convince him to do something good for the town,” Burroughs says. They didn’t talk about business, but rather about their families, he says — they are both close to celebrating their 50th anniversary, they both have two daughters and grandchildren, and they are both accustomed to criticism in their chosen work, but protective of their families.

The “incident” Burroughs referred to is Marotta passing him an envelope, and telling him to read it later, which he did.

Burroughs says when he got home and he and his wife Sarah looked at what was in the envelope, they were shocked to find $10,000 in cash, and from then on began the attempt to return it.

Both Burroughs and Marotta agree that Marotta did not ask for any favours.

On Sunday, Burroughs says he went to church as he usually does, and as he says in his statement, “I reported the incident to a senior official within my church, while town offices were closed.”

On Monday, March 6, Burroughs says, “I reported the incident to the town’s CAO and delivered the envelope to town offices.”

Burroughs has also kept a chronology for himself, which he says details having tried to give the money back to Marotta.

Marotta says at the restaurant Burroughs had told him about his past businesses, and that he worked for his church. Marotta says he told Burroughs he was giving him a campaign donation, and not knowing the rules about the donation limits, he said if it was too much to give the rest to the church. He told Burroughs not to open the envelope because the restaurant was busy, he said.

Burroughs told The Local that Marotta had slipped the envelope in his pocket, and said not to read what was in it until later — “or he may have said not to open it, but I think he said read it.”

If Marotta had said what was in the envelope was intended as a campaign donation, “I would never have taken it. I would have said my campaign is over. I’d already sent some money back to a donor because I didn’t need it.”

If he’d known there was money in the envelope, he added, “I would have left the room.”

Burroughs said it wasn’t until the next day when he tried to return the money that Marotta said it was for his campaign, and when Burroughs told him it was too late, and that he didn’t need it, Marotta said to give it to the church, which Burroughs declined.

Marotta told The Local  he had never asked Burroughs for anything. “I don’t ask for favours, he added, “I do favours for other people.”

He confirmed that Burroughs told him the next day, “I cannot take this money.”

Marotta says he later called Burroughs to offer to go to the church with him to donate the money, but Burroughs didn’t answer or return his call.

Burroughs says when he met with CAO Marnie Cluckie that Monday, March 6, she put the envelope with the money in a safe, gave Burroughs the name and contact information of the integrity commissioner, and talked about giving the money back through lawyers.

Over the next few days, Burroughs says he spoke briefly with the Integrity Commissioner, as well as Cluckie, and his lawyer, who agreed to return the money on his behalf.

Also, “out of concern for the unlawful implications of what occurred, I personally reported the incident to the NRP while I continued to wait for a response from the town,” he says in his statement.

“I am participating in the investigation with the NRP and I have given a statement to police.”

He told The Local being interviewed at the police station “was just like what you see on TV.”

While he was being questioned by one police officer, two others were watching through a window, and he assumed the conversation was being videoed.

He says it was a nerve-wracking situation, but the police officer reassured him the questioning was intended to gain information to help them better understand what had occurred.

Marotta confirmed he has also spoken to the NRP, but said he hadn’t heard from the Integrity Commissioner.

On March 22 the town issued a statement saying that on March 20, council was informed of a matter involving “a third party’s interaction with a member of council that warranted investigation.”

Neither the third party nor the member of council were named.

Council directed the CAO to bring the matter to the attention of the Integrity Commissioner and to notify police, and both steps were taken immediately, the statement said.

“The work of the Integrity Commissioner and the police are important investigative processes that need to be carried out in a professional and confidential manner,” it continued.

“The Town will respect the investigative processes, assisting and supporting any reviews and investigations to the best of its ability.”

“Throughout more than two decades in politics, at no time have I ever sought or solicited money or any other benefits from anyone, including Mr. Marotta,” Burroughs says in his statement, written April 5 and given to The Local April 6.

One issue that is important to him at the moment is whether he needs to declare a conflict of interest during discussions or votes on matters that come before the town pertaining to Marotta, and his companies Solmar and Two Sisters Resorts.

In his statement, Burroughs says, “In my view, I do not have a conflict of interest. Nothing has occurred that prevents me from assessing the merits of any application in a fair and unbiased way. That said, I have asked the Integrity Commissioner Ted McDermott to review and offer an opinion on the matter.”

Burroughs adds that he agrees with those who say “this incident ought to remind us all of the need for compete transparency and vigilance regarding dealings between elected officials, town staff and those who seek town approval for their business dealings.”

Finally, he adds, “I have held elected office in this town and this region for more than 25 years and I can say — thankfully — nothing like this has ever happened to me before. The entire incident has created significant stress for me, my wife Sarah, my family and my friends. We look forward to the completion of the ongoing investigations. In the meantime, I am getting on with the business of council and serving my constituents to the best of my ability.”

Const. Phil Gavin confirmed the NRP were contacted “regarding concerns over a financial contribution that occurred in the Town of Niagara-on-the-Lake.”

Detectives are continuing to investigate, he said, but he was not able to provide any further details “as it is an on-going investigation where charges have not been laid. There is no timeline on the length of the investigation.”

Cluckie said council directed her to bring the matter to the attention of the Integrity Commissioner and to notify police, and both steps were taken immediately. Under the municipal act, she added, “the Integrity Commissioner would not investigate the matter while an investigation is ongoing with the police.”

Questions to the Integrity Commissioner were not answered by press time.