Investigation examined three years of alleged fraudulent activity
Melissa Sundardas
News Editor
Two former York executives face a total of five fraud and money laundering charges after allegedly defrauding the university of approximately $1.2 million dollars, Toronto police say.
Michael Markicevic, 53, former assistant vice-president of campus services and business operations was charged with two counts of fraud and one count of laundering proceeds of crime and Philip Brown, 46, former director of maintenance was charged with one count of fraud and one count of laundering proceeds of crime, after allegedly invoicing and billing York University for around $1.2 million in goods and services it did not receive between May 1, 2007 and April 30, 2010.
“They were working together,” says Joanne Rider, chief spokesperson and director of York media relations. “[The alleged fraud] was relating to goods and service within the maintenance department.”
An investigation began when a York employee came forward with supporting documentary evidence about an alleged fraud, Rider says.
The university conducted an internal audit as well as engaged the services of an external, independent forensic audit company, Navigant to further investigate the suspected fraudulent activity.
Upon receiving Navigant’s report in May 2011, York immediately contacted Toronto police and have been closely working with them over the last several months to support their investigation, Rider says.
Police say the accused used university resources for “personal gains.”
“They charged the school for goods and services higher than fair market value,” says Detective Aldin Holder.
Holder would not comment on what the specific goods or services were, but mentioned part of the alleged fraud charges surfaced from “construction and purchasing misuse.”
Holder says police don’t anticipate any other charges or persons to be charged, but the investigation is still open and will continue, even though Markicevic and Brown are being charged.
“We’re always looking forward to information from anyone else that wants to report any other allegations of misconduct at York University,” says Holder.
In a statement released on June 7, university president Mamdouh Shoukri says York welcomes the Toronto police’s action in the alleged fraud.
“As a not-for-profit institution entrusted with monies from our students and public funds, York University takes its fiduciary responsibilities very seriously and has rigorous procurement policies and procedures in place,” says Shouukri in the statement.
Rider says Markicevic worked as assistant vice-president of campus services and business operations from May 2007 and left in January 2010. Brown, who also held his former position as director of maintenance for three years left in March 2010. University officials would not confirm whether Brown resigned or was fired due to privacy rules.
According to a public sector salary disclosure list, Markicevic earned $209, 845.17 in 2010.
Markicevic and Brown are scheduled to appear in court at Old City Hall on Wednesday, July 18, 2012.
-With files from Hamid Adem
