Hamilton councillor says ‘full-fledged’ police investigation required into mob conspiracy allegations

Hamilton councillor Sam Merulla is calling for an outside police agency to conduct a full-fledged" criminal investigation of claims made in a $75 million lawsuit alleging two city employees conspired with slain mobster Pat Musitano to dump contaminated material at a Flamborough property.

Merulla wants another police service such as the OPP or RCMP to launch a full-fledged, all-out, open and transparent investigation from the bottom right up to the top."

There's no way of addressing this issue without a police investigation," the Ward 4 councillor said.

A Spectator exclusive investigation last week revealed the serious allegations contained in a lawsuit launched by the principals of the Waterdown Garden Supplies Ltd. property on Highway 5 west of Peters Corners.

The lawsuit alleges a city manager and a bylaw enforcement officer conspired with Musitano to dump contaminated material on the property and that thousands of loads originated from the city's own job sites.

Among the other claims in the lawsuit, it's alleged that one or both of the employees profited from the dumping of material at Waterdown Garden, that the manager allegedly provided advanced warnings when bylaw enforcement would inspect the Waterdown Garden property, and that the two city employees allegedly provided information to Musitano about neighbours who had complained about activities at Waterdown Garden.

None of the allegations made in the lawsuit have been proven in court.

The two employees - manager of construction-development Carlo Ammendolia and bylaw officer Craig Saunders - have been placed on paid leave as a precautionary measure" while the city conducts an investigation.

In its response last week to the lawsuit's claims, the city stated it was approached by representatives of Waterdown Garden last fall with the allegations and asked them to provide any evidence they had to city staff, the police, and/or the city's fraud and waste hotline. This was not done to the city's knowledge."

The city also stated it checked records related to third-party haulage of contaminated soils from the identified sites and found no evidence that contracted haulers took contaminated soils to non-permitted sites."

Merulla said a police investigation is needed to clear the air" and to ensure that the public is respected and that any remote chance of mob involvement at the city be eliminated forever."

We need a full-blown police investigation to determine fact from fiction, if there is fiction," he said. And if there's fact then we need to take action."

The city said Monday it has engaged a third-party firm to investigate the allegations contained in the lawsuit.

We would as a matter of course forward any concerns about criminal activity to the Hamilton Police Service," stated Matthew Grant, the city's director of communications.

The city has not been provided with any evidence or information from Waterdown Garden in relation to these allegations that it could forward on to the Hamilton Police Service, despite having asked representatives from Waterdown Garden on numerous occasions," Grant added.

He said the city can't estimate how long the two employees will be on leave.

A spokesperson for Hamilton police stated the Waterdown Garden principals approached police about being the victims of a possible fraud in May 2019 but sufficient evidence was not provided by the complainant to advance the investigation."

At this time, Hamilton police are not conducting a criminal investigation but an investigation would move foward if any evidence of criminality was brought to light," said spokesperson Jackie Penman.

Mayor Fred Eisenberger, as well as councillors Jason Farr and Arlene VanderBeek, said they were limited in what they could discuss because the matter is in litigation.

Eisenberger and VanderBeek said they look forward to the results of the independent investigation.

Should any evidence of any wrongdoing be found through the investigation, or if the complainants come forward with any evidence, it will be referred to the police," Eisenberger stated.

To the best of my knowledge, the city has not received anything from Waterdown Garden to substantiate the allegations," VanderBeek said.

Wilson said the allegations were deeply concerning" and that she supports the city's investigation by an external party. She also stated all employees are entitled to the presumption of innocence."

In the short term, the city needs to be vigilant that the municipality's policies are being upheld on all matters related to dumping," Wilson stated.

The Waterdown Garden property has been the target of complaints in recent years by neighbours. The site is the subject of orders issued by the city and Ontario's Environment Ministry related to the massive piles of soil that were dumped there.

Musitano was a part owner of a company called Havana Group Supplies which is allegedly connected to illegal dumping at the Waterdown Garden property, where more than 24,000 loads were dumped into piles as high as 10 metres between the summer of 2018 and the spring of 2019.

Steve Buist is a Hamilton-based investigative reporter at The Spectator. Reach him via email: sbuist@thespec.com