Ottawa Consultant Sentenced for Fraudulent Federal Contract Billing

An Ottawa consultant has received a 12-month conditional sentence after pleading guilty to fraudulently over-billing the federal government. The RCMP identified the consultant as Andrew McDermott of AM Government Consulting Inc. He pleaded guilty to fraud under $5,000 and to an offence under the Excise Tax Act. The case concerns work associated with Shared Services Canada contracts and illustrates how inaccurate billing and tax failures can expose consultants to criminal consequences, restitution, and reputational harm. It is a compliance development, not a solicitation, contract award, or new procurement opportunity.

The underlying conduct involved the consultant working concurrently on Shared Services Canada contracts held by different private-sector contractors and reporting to multiple technical authorities. According to the RCMP, evidence showed that fraudulent timesheets led to over-billing between May 2020 and June 2022. The investigation began after Public Services and Procurement Canada (PSPC) opened an inquiry in the summer of 2021 into a federal consultant and referred the matter to the RCMP for possible criminal investigation. The case highlights the particular control challenges that can arise when one consultant performs work across overlapping assignments, contractual relationships, and approval chains.

The tax aspect adds a separate compliance dimension. The consultant also admitted failing to remit to the Canada Revenue Agency (CRA) HST collected on the contracts, and the case resulted in more than $11,000 in restitution. For contractors, contract compliance does not end with documenting deliverables or obtaining timesheet approval: applicable tax collected in connection with the work must also be properly accounted for and remitted. For agencies and prime contractors, the facts reinforce the value of reconciling reported hours against work authorizations, contract periods, technical-authority approvals, and charges submitted through other contracting arrangements.

The investigation involved statements from prime contractors and examination of timesheets associated with separate contracts. PSPC said it has safeguards to detect wrongdoing and protect federal procurement integrity, while the RCMP emphasized the role of inter-agency collaboration. Superintendent Jeremie Landry said the RCMP’s Sensitive and International Investigations Unit “remains steadfast in its commitment to investigate fraud against the Government of Canada, protecting public resources, and preserving confidence in the integrity of federal institutions.” The outcome offers a practical compliance reminder for federal suppliers: maintain clear, contemporaneous records; ensure hours are allocated accurately to each contract; retain evidence supporting billed work; and treat tax remittance as an essential obligation alongside contractual reporting.

• Sentence: Andrew McDermott received a 12-month conditional sentence on October 21 after pleading guilty to fraud under $5,000.
• Contract context: The matter involved concurrent work on Shared Services Canada contracts held by different private-sector contractors, with reporting to multiple technical authorities.
• Billing period: The RCMP said fraudulent timesheets resulted in over-billing between May 2020 and June 2022.
• Tax compliance: McDermott also pleaded guilty to an Excise Tax Act charge involving failure to remit HST collected on the contracts.
• Restitution: The case resulted in more than $11,000 in restitution.
• Investigation path: PSPC began an investigation in summer 2021 and referred the matter to the RCMP for possible criminal investigation.
• Evidence and coordination: Investigators obtained statements from prime contractors and examined timesheets for separate contracts.
• Supplier action: Contractors should keep auditable timesheets, support hours charged to each contract, reconcile overlapping assignments, and meet applicable tax-remittance requirements.
• Buyer action: Contract and procurement teams can strengthen oversight through billing reviews that compare reported hours with authorizations, work periods, and approval records.