Havana Group leader swindled ‘gullible’ investor out of more than $200,000, court hears

The former head of the Havana Group who convinced an investor he could help secure lucrative contracts with companies such as Niagara Casinos and the Fort Erie Racetrack has been found guilty of fraud.

In his judgment delivered Thursday in an Ontario Court of Justice in St. Catharines, Judge Andrew Brown said Steven Sardinha, 50, took advantage of a gullible" investor and, together with another man who was later murdered, swindled him out of more than $200,000.

The judge said the victim, a Hamilton steelworker for more than 40 years, was neither sophisticated nor experienced in business matters" and took Sardinha at his word and invested in the company with the promise of multimillion dollar contracts.

He was an overwhelmingly trusting individual," the judge said. He asked few questions, and accepted as true what he was told."

Court was told the victim, now 65, met the defendant in the fall of 2017 following a chance meeting.

Sardihna offered him an opportunity to become a shareholder in a soil removal company called Forever Top Soil.

The victim invested $30,000 for a 30 per cent stake in the company and was later introduced to Grant Norton.

Sardihna said Norton was an old friend and a consultant for Metrolinx who had the authority to award a $1.2 million excavation and maintenance contract involving transit stations across southern Ontario.

The victim met with Norton in Feb. 2018 and was told of the Metrolinx contract as well as other potential lucrative contracts with Niagara Casinos, the Fort Erie Race Track and CN Rail.

The following month, a new company - Havana Group Supplies Inc. - was created with the victim listed as president.

Purchasing construction equipment, repair costs, fuel costs and other expenses fell on the victim's shoulders.

He was easily convinced that lucrative contracts awaited him in the near future, if only he would purchase more and more construction equipment and invest more and more of his savings," the judge said.

The man drained his savings account and cashed out his RRSPs.

He readily assumed the role as chief bill payer, for companies he knew little or nothing about," the judge said.

At one point, the victim was paying the offender a salary - $1,000 a week - and covering his personal expenses including food.

The defendant also convinced the victim to buy him a new truck so he could look a certain way" when going to job sites.

He trusted Steven Sardinha," Brown said. He thought Steven Sardinha was protecting his interests. In that he was wrong."

By June 2018, court was told, Norton met with the victim and proposed a new plan - called Plan B - to ensure the company would be awarded the Metrolinx contract.

Under the new plan, the victim would continue as an investor but be a silent partner and have no active role in the company.

(The victim) having invested so much in the venture and awaiting the promised Metrolinx contract, reluctantly agreed to Plan B," the judge said.

When he got cold feet about a week later, the victim claimed Sardinha and Norton threatened him, saying he was dealing with the Mafia, and he should just play ball.'"

Soon after, the corporate offices of Havana Group in Beamsville were broken into.

Nothing of value was stolen, but for corporate documents and ownership documents of the equipment bought by the victim.

Police were contacted but no arrests were made.

On the same day as the break-in, court heard, Sardinha incorporated a new company with a similar name, Havana Group Supplies Inc.

The victim was then cut out of any dealings with Forever Top Soil or the original Havana Group.

Weeks after the man's removal from the company, a grand opening was held in Waterdown for the new company.

Much of the construction equipment on display - dump trucks, backhoes and other machinery - had been purchased by the victim.

Representatives from the various entities mentioned in the scheme, including Niagara Casinos, testified at trial there were no contracts on the table, and none had ever heard of Sardinha, Norton, or the Havana Group.

The much-hyped Metrolinx contract and talked about contracts with CN Rail, the old casino and Fort Erie Race Track never materialized because they never existed," the judge said.

Sardihna, who had represented himself at the seven-day trial, maintained he was a victim of misrepresentations made by Norton.

The former Ancaster resident, who has multiple previous fraud-related convictions, is scheduled to return to court in May for sentencing.

The Crown is seeking a custodial term plus restitution for the victim.

Meanwhile, Norton was reported missing in Waterloo in July 2020.

At the time, the 59-year-old was on the run from Niagara Regional Police after failing to appear in court to answer multiple charges including fraud and theft.

Norton's remains were found in a wooded area in London, nine days after Hamilton mobster Pat Musitano was shot dead in a Burlington parking lot.

Musitano was a minority shareholder in Havana Group Supplies. He pleaded guilty in 2000 to conspiracy to commit murder in the 1997 death of Carmen Barillaro of Niagara Falls.

Alison Langley is a St. Catharines-based reporter for the Niagara Falls Review. Reach her via email: alison.langley@niagaradailies.com