What that information shows is the ways in which the Mafia exploits conflict, and how organized crime intersects with business. In a bid to demonstrate that they have been miscast as the villains in this plot, the Carbone brothers have mounted an aggressive defence. Armed with surreptitiously recorded audio, surveillance footage, e-mail and other documents, they’ve launched a scorched-earth litigation strategy. Two judges have deemed their recordings inadmissible and unreliable. Another has called them irrelevant to their defence of Mr. DeGroote’s claim of fraud. It goes against our guidelines to offer incentives for reviews.
It must have been bitter news for Mr. DeGroote, who at the beginning of the year had advanced $2.4-million in “emergency funding” to Dream, at the request of Mr. Pajak, after the battle in Santo Domingo. He is suing Mr. Pajak, but provided the funds because Mr. Pajak told him they were needed “to save Dream from collapse,” said one of Mr. DeGroote’s lawyers, Eric Block, in a letter to all the parties in the dispute. His destination – on this trip and many others in 2013 – was the Dominican Republic. It had long been a destination retreat of choice for Mr. Rizzuto; he had a home there.
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They grew up in Woodbridge, a suburb north of Toronto, and have moved in lockstep throughout their working lives, moving from one industry to another. They started out with a house-painting business and then shifted to tobacco distribution. They sold their own brand of cigars and flavoured cigarillos under the name Don Carbone.
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Mr. DeGroote, who emigrated from Belgium with his family as a teenager, dropped out of high school to work on tobacco farms in order to help support his family. In his 20s, he bought a small trucking outfit, Laidlaw Inc., which he gradually built into a $5-billion company with school-bus and waste-disposal operations as well as its original business. He sold his stake to Canadian Pacific in 1988 for $500-million. After touring the trio’s Toronto-area office and visiting Jamaica with his chief financial adviser, Mr. DeGroote was convinced they were on to something; he provided their company with a $5-million loan on Dec. 1, 2010. In the 1980s, when Mr. DeGroote was already a well-established titan of Canadian business, Mr. Pajak was a high-rolling real-estate developer who was married, at the time, to a former Miss Toronto.
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They discussed the possibility of giving Mr. Visser an ownership stake in the company once Dream was no longer controlled by the Carbones. Mr. Visser said he needed $500,000 and Mr. DeGroote’s complete confidence. He described how he would need to pay certain Dream officials to procure their evidence and testimony. Mr. DeGroote was adamant that he wanted Mr. Visser to speak with his lawyers at the Bay Street powerhouse McCarthy Tétrault.
In February, lawyers for Mr. Pajak appeared on a radio show, challenging earlier claims made on the airwaves that the Carbone brothers were the rightful owners of Dream. Starting in late July, a lawyer for Mr. Visser entered into talks with Mr. DeGroote about handing over Mr. Visser’s recordings. They were unable to reach an agreement because Mr. DeGroote refused to pay for evidence, the billionaire said in an affidavit. N May 10, 2013, two men took the elevator up Toronto’s shimmering Ritz-Carlton hotel to a condominium owned by the DeGroote family. They were met by Michael DeGroote, who complained that he had been “robbed” by the Carbone brothers.
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