MONTREAL - The Caisse de depot et placement du Quebec has fired four senior executives, including the chairman and chief executive of its mortgage financing subsidiary Otera Capital following an in-depth internal investigation of ethical breaches. The investigation confirms that the actions of subsidiary president Alfonso Graceffa, economist Edmondo Marandola and vice-president Martine Gaudreault were not appropriate but not interconnected. The Journal de Montreal revealed irregularities in February, including that Graceffa obtained 11 loans totalling more than $9 million from an Otera subsidiary to finance income properties he owned. It also revealed that Marandola was moonlighting as a real estate developer and that Gaudreault and her husband, Alain Cormier, were in business together and that Cormier had business ties with the Rizutto Mafia clan. Caisse president Michael Sabia says he’s reassured by the fact that “no misuse of funds” was found and that Otera’s portfolio has retained its integrity.

Source: thestar May 29, 2019 16:18 UTC