York University is suing a former York University executive who it says fraudulently used $250,000 of the school’s funds for home renovations.
The school alleges that Michael Markicevic, former assistant vice-president of campus services and business operations, used staff and materials from the university for work on two family homes.
In June 2012, Markicevic, along with 18 additional defendants and six companies, was charged with fraud for engineering a false invoice scheme to embezzle money.
York’s lawyers allege the defendants took up to $1.23 million between 2007 and 2010 in a “vast” scheme. They also claim Markicevic conceived the plan.
In 2011, York University identified the fraudulent activity and immediately engaged a third-party forensic audit firm, Navigant, and then contacted the police, according to Joanne Rider, York’s director of media relations.
“We welcomed the criminal charges laid by Toronto Police Service,” university president Mamdouh Shoukri said in a statement released in June 2012.
Toronto Police Services charged Markicevic with two counts of criminal fraud, and one count of laundering the proceeds of crime.
York is attempting to prove that Markicevic, a former Collingwood police officer, took part in a system of false invoice approval.
According to York, Markicevic and the other defendants involved took advantage of procurement policies by both inflating, as well as creating contracts that appeared to be for the university, while in fact taking the funds for themselves.
Since the civil lawsuit was filed with the Ontario Superior Court of Justice, more information has come to light in regards to the extent of Markicevic’s fraud.
Affidavits indicate numerous services were performed on Markicevic’s personal home in Vaughan, Ont. including landscaping, carpentry, electrical work, and the delivery and installation of a Jacuzzi hot tub.
In 2010, Markicevic received an almost $700,000 severence package, as well as a $86,000 performance bonus when he was terminated from his position at York University, according to court documents.
Markicevic denies the claims against him, and believes senior employees are bargaining with authorities in order to diminish their own role in the fraud, according to the Toronto Star.
Markicevic could not be reached for comment.
Rider said the case is currently under review and consideration by an Ontario Superior Court judge.
