Otéra head to step down amid probe

Caisse subsidiary facing inquiry into its activities

The head of a Caisse de dépôt et placement subsidiary will step down as an investigation of its activities continues, the provincial pension fund manager said on Friday. In a press release, the Caisse said it has accepted an offer from Alfonso Graceffa, the president and CEO of Otéra Capital, a real estate lender, to withdraw from all his functions at the Caisse’s real estate subsidiaries while an external investigation into Otéra Capital is conducted. The investigation was launched on Tuesday, after a report in the Journal de Montréal revealed that Alain Cormier, the longtime romantic partner of Martine Gaudreault, a vice-president at Otéra Capital, has done business with alleged members of the Montreal Mafia and people linked to organized crime. Gaudreault and Cormier were also business partners — the two co-own a numbered company that owns several properties and properties owned by a numbered company directed by Gaudreault — which was previously directed by Cormier — were listed on the website of Cormier’s real estate management company, Bancan.

LOANS TO COMPANIES

Gaudreault was suspended by the Caisse within hours. The Caisse said it would appoint an external lawyer to conduct an investigation and that Gaudreault would be suspended until the investigation is complete. However, Graceffa has also faced questions about his own actions — companies he owns have allegedly received 11 loans from a subsidiary of Otéra, MCAP, since 2010, totalling $9.2 million and one of his business partners received a loan of $44 million from Otéra, according to reports in the Journal. The Caisse has said the results of the investigation will be made public.