Councillor Giorgio Mammoliti is under police investigation for accepting an $80,000 gift from a fundraiser last May, the Star has confirmed.
In July, integrity commissioner Janet Leiper wrote in a scathing report that Mammoliti had violated the city's code of conduct by accepting an $80,000 gift from event organizers. Over 200 guests attended the $500-a-plate fundraiser at a banquet hall in Woodbridge, the report found.
Mammoliti, often a brash and polarizing figure on city council, has maintained that he did nothing wrong, and vowed to sue the city after council voted to dock his pay for 90 days over the issue. Councillors also directed the city to hire outside legal counsel to consider whether Mammoliti broke the law.
City spokesperson Wynna Brown said the law firm Stockwoods had been hired to look into the fundraiser.
"The matter has been referred to the police for such action as the police deem appropriate," Brown wrote in an email.
The police investigation "will be with the financial crimes unit," said police spokesperson Mark Pugash.
Mammoliti could not be reached for comment Monday evening.
Leiper's report found that days after the fundraiser, the company that hosted the event issued three cheques to Mammoliti. Two – each for $40,000 – were labeled as "Gift." The city code of conduct prohibits councillors from accepting "a fee, advance, gift or personal benefit."
The integrity chief also found that at least two members of Mammoliti's staff helped organize the fundraiser over the course of more than 20 work days, and that his staff altered invoices to invitees to remove any references to the councillor.
Mammoliti has denied that the Woodbridge event had anything to do with election fundraising, telling the Star in June that the banquet was held to celebrate "my recovery from my recent health concerns," a reference to brain surgery he underwent last spring.
On June 10, Mammoliti filed a notice of application with Ontario's divisional court to block Leiper's investigation, accusing the commissioner of being "unfair and biased."
This is not the councillor's first brush with controversy over election financing: a city-commissioned audit last year found that Mammoliti spent $12,065 more than was legally allowed during the 2010 election.
Recent polls show that the councillor, who has represented Ward 7, York West since 2000, faces a tough fight for re-election, with challenger Nick DiNizio gaining momentum.
Mammoliti has endorsed Doug Ford for mayor.
With files from Betsy Powell and Jennifer Pagliaro
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