Former B.C. Lotto CEO Michael Graydon was in conflict of interest

The former head of B.C. Lotteries Michael Graydon was in a conflict of interest when he left to work for a private casino operator earlier this year, a government report has concluded.

Graydon stepped down on Jan. 29, 2014 to take a job as president of a newly-formed company affiliated with Paragon Gaming, to run a newly-approved "urban resort" and casino operation next to BC Place Stadium.

Before Graydon took the job, Paragon Gaming, the operator of the Edgewater Casino in Vancouver, was negotiating with the City of Vancouver to move that casino from the Plaza of Nations to a new hotel complex next to BC Place Stadium.

The move had been widely opposed by residents, but was approved in December 2013, less than two months before Graydon took the job to run it.

According to a statement released by Finance Minster Mike de Jong's office on Thursday:

"The review found the former CEO was in a conflict of interest during the two months prior to the time he left British Columbia Lottery Corporation (BCLC), but found no evidence that he or his new employer benefited from the conflict."

The report also found the lottery corporation failed to shut down Graydon's access to the corporate information systems, including his email accounts, until 10 days after his departure, violating the corporation's own policy.

The statement said that as a result of the review, BCLC will implement new post-employment restrictions for CEOs and senior executives that will bar employment with private gaming companies in B.C. for one year.

Crown corporations in other sectors have also been directed to develop similar standards of conduct.