The RCMP has charged an Ottawa consultant and his company with fraud over $5,000 after investigators alleged that fraudulent timesheets led to overbilling on federal government contracts between 2020 and 2022. The consultant is scheduled to appear in court on May 5.

An Ottawa-based federal consultant is facing fraud charges after the RCMP alleged he fraudulently overbilled the Government of Canada on contract work between 2020 and 2022.

According to police, the matter began when Public Services and Procurement Canada launched an investigation in the summer of 2021 into a consultant who was allegedly working on multiple Shared Services Canada contracts at the same time. Those contracts were held by different private-sector contractors and involved reporting to different technical authorities.

The RCMP said evidence indicated that the consultant submitted fraudulent timesheets, resulting in overbilling between May 2020 and June 2022. Public Services and Procurement Canada referred the matter to the RCMP for a possible criminal investigation.

The RCMP’s Sensitive and International Investigations Unit then opened an investigation into the alleged overbilling. Investigators reviewed timesheets and obtained statements from prime contractors to determine whether the consultant had billed the federal government improperly across separate contracts.

Police also allege that while the contractor collected HST, he failed to remit it to the Canada Revenue Agency.

Andrew McDermott, 62, of Ottawa, and his company, AM Government Consulting Inc., have each been charged with two counts of fraud over $5,000.

Public Services and Procurement Canada said the charges relate to one of three subcontractor cases it had previously identified. In March 2024, the department announced that investigations had found three subcontractors suspected of fraudulently billing for contract work across multiple federal departments, agencies, and Crown corporations.

The department said it suspended the security status of the three subcontractors in question and that none currently hold security credentials with Public Services and Procurement Canada.

The case raises concerns about oversight in federal procurement, particularly where contractors or subcontractors are assigned to multiple projects involving different departments, private-sector intermediaries, and technical authorities. Alleged timesheet fraud can be difficult to detect when work is distributed across several contracts unless billing records are carefully compared.

Public Services and Procurement Canada said the RCMP’s decision to pursue the investigation reflects the department’s commitment to protecting the integrity of Canada’s federal procurement system.

McDermott is scheduled to appear at the Ottawa Courthouse on May 5.

The allegations have not been proven in court.

The post Ottawa Consultant Charged With Fraud Over Alleged Federal Government Overbilling appeared first on Canadian Fraud News Inc. | Fraud related news | Fraud in Canada.

Originally published on Canadian Fraud News.