UCP kamikaze leadership campaign funder sees $9,000 collusion fine quashed

The Calgary businessman who financed Jeff Callaway's kamikaze UCP leadership campaign in 2017 has successfully appealed one of his fines. 

Robyn Lore and his company Agropyron faced several fines totalling $25,000 for breaching Alberta's election financing rules.

Now, a Calgary judge has overturned a finding of collusion and its accompanying $9,000 penalty, ruling there was a "fundamental flaw" in the election commissioner's investigation. 

"Mr. Lore was denied procedural fairness in respect to the finding of collusion made against him," said Court of King's Bench Justice Richard Neufeld.

• Calgary businessman Robyn Lore fined for allegedly funding 'kamikaze' UCP leadership campaign

The issue, said Neufeld, was that a month before Lore was found guilty of collusion and fined, Callaway was issued a notice of administrative penalty for the alleged collusion.

Although investigative findings against both Callaway and Lore were outlined in Callaway's notice, those details were never disclosed to Lore, who met with an investigator a month later.

'Common sense and basic precepts of fairness'

CBC News has obtained a transcript of Neufeld's decision, which was delivered orally last month. 

"In fairness, [Lore] ought to have been advised of the fact that he had already been found to be in contravention of the act at that time and be given a proper opportunity to respond to that highly prejudicial finding," said Neufeld.

"Common sense and basic precepts of fairness dictate that [the notice] ought to have been provided to Mr. Lore for response."

• Alberta kamikaze candidate suffered 'severe reputational harm,' lawyer argues in fine appeal

In 2017, Callaway plotted to support Jason Kenney's leadership bid by running a temporary campaign focused on attacking the future premier's chief rival, Brian Jean.

That September, Lore provided $60,000 to Callaway's campaign. That money was distributed to a group of trusted individuals who then sent the money back in smaller parcels that were within contribution limits.

Callaway then had enough money to cover his entrance fees.

'No direct evidence'

But a year later, an election commissioner investigation resulted in hundreds of thousands of dollars in fines levied against Callaway, Lore, campaign staff and the "straw" donors. 

"This scheme required you and Lore to plan, prepare and co-ordinate certain of your activities, and activities involving others," read the commissioner's findings against Callaway.

"Lore's participation in this scheme is not trivial."

The investigator found Lore "took planned and co-ordinated steps to obscure the actual source of the funds."

But Neufeld noted there is "no direct evidence to support the contention that Mr. Lore was behind this plan or colluded with others in its planning."

Callaway transferred $200,000 in shares

Throughout that investigation, Lore maintained the $60,000 was a loan and told the election commission investigator that campaign staff assured him he would not get into trouble. 

He said Callaway eventually "transferred shares" worth $200,000 as repayment plus a "top-up."

But the judge upheld the remaining $16,000 in fines connected to findings of unlawful campaign contributions.

Neufeld ruled there was no evidence of any written loan agreement, and besides, only Canadian chartered banks are allowed to issue loans under the Election Finances and Contributions Disclosure Act.

On top of that, the judge noted the $200,000 in shares were transferred after the investigation was "well underway and all of the parties were in jeopardy."

A number of others who were issued penalties in connection with the investigation are awaiting decisions in their appeals, including Callaway, who was in court last week arguing for his fines to be quashed.