Mac Harb settles lawsuit with RBC over mortgage fraud allegations
OTTAWA — Mac Harb, a former Liberal senator who became a central figure in the Senate expense scandal, says he has settled a claim with Royal Bank over its role in the investigation into his spending.
An RCMP investigation into Harb’s Senate expenses alleged his primary residence was “uninhabitable” for three years, and that he maintained a 0.01 per cent ownership stake in the house after selling the rest to a diplomat from Brunei who subsequently left Canada.
When Harb was charged in February 2014 with fraud and breach of trust — charges that were ultimately dropped — investigators explicitly said there wasn’t enough evidence to support a count of mortgage fraud.
In a release Wednesday, Harb and his lawyer say it was Jan. 27, 2014, when the bank told the Mounties there was “nothing wrong” with his mortgage — but by then, the damage had been done.