Next 'in-and-out' court date set for June 15

A lawyer for two Conservative senators and two other former party officials charged with breaching the Elections Act appeared briefly in Ontario provincial court Friday in Ottawa.

Senators Doug Finley and Irving Gerstein, former national party director Michael Donison and former interim executive director Susan Kehoe face charges over so-called "in-and-out" campaign expenses from the 2006 election.

Finley was the Conservative campaign director in 2006 and 2008 and Gerstein its chief fundraiser. The Conservative Party of Canada and the Conservative Fund of Canada, the party's fundraising arm, also face charges.

The four individuals were not in court Friday. Their lawyer, Mark Sandler, declined to comment, saying all will be revealed in court later.

Crown attorney Richard Roy said the defence lawyer was provided with a "substantial" amount of evidence against his clients on Friday.

"The matter has been adjourned for a period of three months to give the defence a chance to take cognizance of the substantial disclosure we're giving today," said Roy.

The next court date in the matter was set for June 15 at 9 a.m.

Roy said the charges are related to incurring election expenses that exceed the limit set out under the Elections Act. There is also a charge of providing a false return in the financial reporting of the campaign expenses.

"It states that all national expenses had been properly reported," Roy said, referring to the return.

The allegations relate to the transfer of $1.3 million between the bank accounts of the national party and local riding associations in order to buy advertising during the election that brought Prime Minister Stephen Harper to power. Money was transferred to 66 Conservative riding associations, who immediately transferred it back to the national party, which then bought television advertising.

When filling out their election expenses to be eligible for reimbursements from Elections Canada, the local candidates reported the money they had received from the national party as their own expenses on advertising.

Elections Canada contends the money used for the advertising should have been reported as national expenses and because they weren't, the Conservative Party exceeded the $18.3-million spending limit.

The Conservatives argue they did nothing wrong and the matter is a dispute over an interpretation of the rules.