OPP charges City of Hamilton staffer after probe into alleged development permit fraud

Ontario Provincial Police have charged a Hamilton building division employee after a probe into allegations of fraud related to development permit fees.

Vladimir Apostolski, a municipal plans examiner, was charged with two counts of breach of trust after a seven-month probe into allegations of financial wrongdoing" and corruption," according to an OPP release.

The 41-year-old Hamilton man was previously one of 17 people charged in the February aftermath of a massive, multi-jurisdictional Project Skyfall investigation into organized crime and the drug trade in the Golden Horseshoe.

The latest allegations of corruption against Apostolski stemmed from the findings of that earlier drug probe - which is when Hamilton police asked the OPP to investigate, said provincial police spokesperson Bill Dickson.

He said such a request is not uncommon when municipal officials are involved" and noted the OPP also has special expertise" in dealing with financial crimes in its anti-racket branch.

Dickson would only say the alleged crimes involved missing fees" related to development and parkland permits."

But the alleged wrongdoing appears to be related to the amount of fees charged or collected, not the nature or appropriateness of permits granted.

Court documents obtained by The Spectator allege the plans examiner, on two occasions in May 2021, committed fraud by entering false information on City of Hamilton documentation and depriving (the city) of fees owed."

A plans examiner reviews building permit applications for the city and assesses what fees should be charged.

Dickson said the city has recovered" an unspecified amount of fees, but added investigators do not wish to divulge the amount.

The city said in a statement it is aware some of the charges relate to Mr. Apostolski's role at the city" and that he is on unpaid leave.

He has been on leave at least since February, when the RCMP and Hamilton police announced he faced separate charges related to drugs and possession of property obtained by crime.

The city declined to comment on the charges but said internal processes" helped identify at least one related fee issue.

In a statement, the city said it is committed to continually reviewing and updating our processes, including in response to any issues that may come to light as a result of this ongoing investigation."

In a later interview, city manager Janette Smith said she would consult with the city auditor to determine whether an internal probe is warranted.

Smith could not say how much money might have been lost or recovered.

The charges against a city building division employee come three years after the department endured heavy criticism for yanking a building permit granted in error to a would-be Dundas homeowner in the middle of construction.

That embarrassing episode came back to haunt the city last year, when a frustrated councillor suggested corruption in the building division in a phone call with a constituent that was recorded and later shared online.

Coun. Brad Clark later apologized for citing unfounded" rumours during the call. His baseless" allegations were also criticized in an integrity commissioner report.

Matthew Van Dongen is a transportation and environment reporter at The Spectator. mvandongen@thespec.com