Schreiber and Schreiber and MulroneyMulroney

““Mulroney tried to cover up cash Mulroney tried to cover up cash payments he received in hotel room: payments he received in hotel room:

Schreiber.”Schreiber.”

Who was Who was KarlHeinz KarlHeinz SchreiberSchreiber

German Born BusinessmanGerman Born Businessman

Canadian Citizen (1982) Canadian Citizen (1982) German CitizenGerman Citizen

Lobbyist –arms industryLobbyist –arms industry

Middleman Middleman

?Criminal, extradited to ?Criminal, extradited to Germany April 2009 to face Germany April 2009 to face charges of bribery, fraud, and charges of bribery, fraud, and tax evasiontax evasion

What were the What were the cash payments cash payments

in question? in question? When were they When were they made and why?made and why?

Cash PaymentsCash PaymentsAlleged $300 000.00 in three cash payments Alleged $300 000.00 in three cash payments made by Schreiber to Mulroney from 1993-made by Schreiber to Mulroney from 1993-1994 from a secret account. Payments were 1994 from a secret account. Payments were made in hotel rooms in Montreal and New made in hotel rooms in Montreal and New YorkYork

Schreiber: for Mulroney’s aid in establishing Schreiber: for Mulroney’s aid in establishing an arms factory in Quebec, and later a pasta an arms factory in Quebec, and later a pasta business in Ontariobusiness in Ontario

Mulroney: to provide a watching brief, Mulroney: to provide a watching brief, develop economic opportunities, travel, new develop economic opportunities, travel, new markets, Canadian-made peace keeping.markets, Canadian-made peace keeping.

What was the What was the affidavit and when affidavit and when was it supposed to was it supposed to

be signed?be signed?

The affidavit : According to The affidavit : According to Schreiber, Mulroney requested a Schreiber, Mulroney requested a written statement from written statement from Schreiber stating that “at no Schreiber stating that “at no time did he ever solicit or time did he ever solicit or receive” money from Schreiber.receive” money from Schreiber.

The request for a signed affidavit from The request for a signed affidavit from Schreiber occurred before November Schreiber occurred before November 2,19952,1995

The request was ignored on advice from The request was ignored on advice from Schreiber’s Lawyer, Edward Greenspan.Schreiber’s Lawyer, Edward Greenspan.

What happened What happened when Schreiber when Schreiber refused to sign?refused to sign?

After the affidavit was not After the affidavit was not received, Mulroney makes a received, Mulroney makes a voluntary disclosure of the voluntary disclosure of the “income” to Revenue Canada“income” to Revenue Canada

Disclosure occurred shortly before Disclosure occurred shortly before November 2, 1995 November 2, 1995

$200 000.oo income earned in 1993 $200 000.oo income earned in 1993

$100 000.00 in 1994$100 000.00 in 1994

Disclosure of income must be Disclosure of income must be declared without any hint of an declared without any hint of an Investigation by Revenue Canada or Investigation by Revenue Canada or criminal investigationcriminal investigation

Mulroney stated that a Mulroney stated that a Cataclysmic Event delayed him Cataclysmic Event delayed him

from declaring the incomefrom declaring the income

What was the cataclysmic What was the cataclysmic event that disrupted event that disrupted

Mulroney’s life in 1995?Mulroney’s life in 1995?

The event was Mulroney learning that the The event was Mulroney learning that the RCMP was investigating allegations that RCMP was investigating allegations that he accepted kickbacks from Schreiber for he accepted kickbacks from Schreiber for the purchase of a large order of Airbus the purchase of a large order of Airbus jets when he was still in office.jets when he was still in office.

““he could not resume normal functioning he could not resume normal functioning and attend to normal day-to day affairs” and attend to normal day-to day affairs” as a result of the investigationas a result of the investigation

He learned this November 2, 1995He learned this November 2, 1995

Why does this Why does this seem to be an seem to be an invalid excuse invalid excuse

for not for not disclosing disclosing income?income?

Remember the income was Remember the income was earned in 1993 and 1994, due earned in 1993 and 1994, due May 2, 1994 and May 1, 1995 May 2, 1994 and May 1, 1995 respectively.respectively.

The “ cataclysmic event” The “ cataclysmic event” occurred November 2, 1995occurred November 2, 1995

If the disclosure of income If the disclosure of income occurred any time after occurred any time after November 2, 1995 then Mulroney November 2, 1995 then Mulroney must be completely upfront about must be completely upfront about financial matters to file a late financial matters to file a late disclosure with Revenue Canada disclosure with Revenue Canada

What was the What was the outcome of the outcome of the

cataclysmic cataclysmic event? When event? When

was it settled?was it settled?

Mulroney sued for libel over the Mulroney sued for libel over the RCMP investigation and alleged RCMP investigation and alleged kickbacks for the Airbus jet kickbacks for the Airbus jet purchasepurchase

Commonly known as the “Airbus Commonly known as the “Airbus Affair”Affair”

Under oath Mulroney denied any Under oath Mulroney denied any dealings with Schreiber.dealings with Schreiber.

Mulroney received a 2.1 million Mulroney received a 2.1 million dollar settlement and a Federal dollar settlement and a Federal government apology in 1997government apology in 1997

““Mulroney tried to cover up cash payments Mulroney tried to cover up cash payments he received in hotel rooms: Schreiber,” he received in hotel rooms: Schreiber,” CBC News, October 31, 2007, cbc.caCBC News, October 31, 2007, cbc.ca

http://en.wikipedia.org/wiki/Brian_Mulroney

http://en.wikipedia.org/wiki/Karlheinz_Schreiber

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