Former Progressive Conservative leader Patrick Brown violated ethics rules by not reporting income he earned renting out his home in 2016 and 2017, and by failing to disclose that a PC candidate loaned him $375,000, Integrity Commissioner J. David Wake has ruled.
Wake says that Brown, who remains the independent MPP for Simcoe North, rented out his Lake Simcoe waterfront mansion on AirBnB in 2016 and to a friend in 2017, and did not report the income he earned to the province.
Wake also says he found that Brown accepted a $375,000 loan from Jaswinder Johal, who was later nominated as the PC candidate for Brampton North, and used the funds to assist in the purchase of his $2.3 million Shanty Bay home.
But Wake said he could not find any evidence to suggest the loan was some form of payment in exchange for the privilege of running as a candidate.
“Of the four breaches of the Act, the most serious are those related to the non-disclosure of the loan from Mr. Johal. On all the evidence, I found that the non-disclosure of the loan, as with the rental income, was deliberate, and not through inadvertence,” Wake wrote in his 60-page report released Thursday.
Members of provincial parliament are required by law to disclose all assets, income and liabilities valued at $2,500 or more, to the integrity commissioner each year.
Shortly after the report was released, Brown tweeted a response to Wake’s findings.
“I thank the Honourable J. David Wake, Integrity Commissioner for today’s report. “There was no evidence that he “Brown” accepted or failed (to) disclose gifts of travel,” he said. “I accept the reprimand and apologize for not disclosing my limited rental income and temporary secondary mortgage. Glad this matter is now closed.”
Loan was originally offer to buy stake in bar, Aeroplan points
When Brown sought to buy his Shanty Bay home in 2016, he told the integrity commissioner that the bank wanted $375,000 from him, on top of what he had already provided as a down payment.
Brown said the bank’s demand prompted his “very good friend” Johal to offer him the $375,000, to buy Brown’s stake in a Barrie bar and grill called Hooligans and two million of Brown’s Aeroplan points.
“Mr. Brown indicates that he decided not to proceed with this transaction, after which Mr. Brown and Mr. Johal agreed on the terms of a loan for $375,000. This loan was advanced on July 11, 2016 and deposited to Mr. Brown’s account that day,” Wake wrote.
The deal closed in July 2016. Jaswinder Johal was nominated as the PC candidate for Brampton North in November 2016. But Wake said there was no evidence to suggest a quid pro quo.
“Mr. Brown indicates that he did not interfere with, or exert any influence or control over, the nomination process in Brampton North, which is the riding in which Mr. Johal was acclaimed as the PC Party candidate in late 2016,” Wake wrote.
Johal was removed as candidate for Brampton North in March and a new nomination process was held.
Wake called the arrangement of the loan “Byzantine in nature and disturbing on many levels.”
Brown attempted to take on roommate
Wake found that Brown rented the home out to various people on AirBnB, and at one point planned to accept his longtime friend as a roommate, who would pay $2,000 per month.
But the friend never actually moved in and instead rented the house from Brown on AirBnB at times when Brown was away on business.
Wake said Brown absolutely should have disclosed the rental income earned from the home in 2016 and 2017.
Hillier’s travel claim dismissed
Wake’s investigation was prompted by a complaint made by PC MPP Randy Hillier, who alleged in addition to the loan and the rental income, that Brown and his girlfriend accepted travel to India, Syria, Turkey, Las Vegas and Boston.
Wake found that all travel was paid for by Brown, his girlfriend, or the Ontario PC Fund, and that none of it could be considered an undisclosed gift.
Brown abruptly resigned as leader of the PC Party on Jan. 25 after CTV News reported allegations of sexual misconduct against him brought forward by two women. He has emphatically called the claims false.
The allegations against him have not been tested in court.
Brown later sued CTV News for defamation, seeking $8 million in damages.
He was kicked out of the PC caucus and currently sits as an independent.
In March, the party also told Brown he was ineligible to be the PC candidate for Barrie-Springwater-Oro-Medonte – the riding he planned to run in, during the June general election.
Wake said in his report that the legislature should penalize Brown.
