Mounties' CINAR Findings Filed
The Royal Canadian Mounted Police (RCMP) filed their first documents in the CINAR Corp. tax fraud case. According to the report CINAR received at least CA$7.8 million (US$5.4 million) in Quebec provincial tax credits by allegedly placing false Canadian names on scripts written by U.S. writers to receive tax credits. In the report, RCMP says that several executives, including former co-CEO and co-founder Ronald Weinberg, asked former CINAR employee Thomas Lapierre to create subcontracts that would be used to pay U.S. scribes. In turn, Lapierre's name appeared in the credits of shows written by U.S. writers which included ARE YOU AFRAID OF THE DARK?, CHRIS CROSS, THE BUSY WORLD OF RICHARD SCARRY and THE COUNTRY MOUSE AND THE CITY MOUSE ADVENTURES. For instance, a subcontract was drafted for 12 episodes of SCARRY for U.S. writers Don Rifkin and Gary Cohen. In turn, Rifkin and Cohen's names did not appear on documented credits given to tax officials and funders. A spokesman for CINAR said the company has not been contacted by police regarding these new events. In regards to the rumors that CINAR will sell off its assets to other Canadian firms, the spokesman said new management was not brought in to sell the company, but to fix it.