Tax officials are on the trail of a former executive of St. Mary's Hospital Center who is suspected of embezzling half a million dollars.

Revenu Québec is claiming $278,000 in unpaid taxes from a former executive at St. Mary's Hospital Center who paid for it over the years with taxpayer money.

Tax authorities allege that Magdi Kamel hid nearly half a million dollars in income diverted from the establishment's account between 2010 and 2015.

In recent days, Revenu has issued an authorized legal mortgage on his home in Pierrefonds, Quebec, which is being sold. It has been listed for sale since last fall for $750,000.

According to Revenue Quebec, Kamel failed to pay taxes on the “fraudulently” obtained amounts. Notably, after an internal investigation by the hospital, it was discovered that he had purchased treats such as computers, electronic tablets, restaurant meals and gift certificates to department stores.

Some of the purchases were made in the evenings and weekends before delivery to his home, raising doubts.

No charges

Thanks to his position as Director of Material Resources and Technical Services, he was able to authorize the issuance of numerous checks, many of them without any supporting documentation and for amounts under $2,000.

Despite being investigated by the Permanent Anti-Corruption Unit (UPAC) for fraud and breach of trust, Kamel has not been charged, according to Revenu Quebec.

He paid back $422,000

The twenty-year veteran resigned in early 2016, weeks after the establishment began investigating him.

In the months that followed, the hospital seized his luxury Kirkland residence with a foreclosure, and took legal action to recover sums he suspected of embezzling.

Magdi Kamel

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Kamel agreed to reimburse the establishment $422,000 after a year, according to a request filed by Revenu Quebec a few days ago.

Kamel and the CIUSSS de l'Ouest-de-l'Île-de-Montréal, about which St. Marie now reports, then came to an amicable agreement. Our Bureau of Investigation went to court to find out more, but the establishment went all the way to the Supreme Court to prevent it from successfully disclosing a forensic accounting report from PwC that detailed the alleged scheme.

√ Former executive Revenu cited the fact that the hospital was reimbursed last year for refusing to pay assessment notices sent by Quebec.

With Philippe Langlois and Michael Nguyen