By Meg Campbell

TTC Toronto Police arrested four individuals today on charges related to an internal fraud investigation that the TTC launched in 2009. They allege that Sebastian Corbo, owner of IPAC Paving Limited, overcharged the TTC by $149,020.62 for work done between June 2009 and July 2010. They also allege that Bruno Colavecchia, a TTC project manager, who was in charge of setting up contract fees and payments to IPAC for that work, received and deposited funds from IPAC into a bank account he set up under a fraudulent company name. His wife and son have also been charged with laundering and possession of proceeds of crime and conspiracy to commit an indictable offense.
The TTC originally launched an investigation after receiving a complaint, and last summer TPS joined the investigation, which is ongoing. All four individuals charged are scheduled to appear in court on July 28. Read the TPS release about the arrest [PDF].