Another company owner describes financial fallout from Daniel Bard's failed promises

Another New Brunswick business owner testified in Daniel Bard's trial about providing his firm thousands of dollars on the promise of millions in financing, and then facing financial trouble when the money didn't materialize.

Donald Gauvin, CEO of Tracadie-based Lamtrac Global Inc., testified Monday in Moncton about ramping up the company's production anticipating $15 million Bard promised within weeks of signing a deal in early 2019. 

Lamtrac had to pay Bard's firm, VM Venture Management, a deposit of $150,000 US that would be almost entirely repaid if Bard failed to deliver. 

But the money never arrived, and Gauvin said Bard has yet to repay the deposit. 

"My feeling was that I was going to lose everything," Gauvin testified in French about how he felt as he began to realize the money wasn't coming. 

Crown prosecutor Andrew Pollabauer asked Gauvin about the impact that had. 

"Almost went bankrupt," Gauvin responded. "Technically we did go bankrupt, insolvency."

The testimony came during the start of the third week of Bard's trial on 19 charges alleging fraud, theft, money laundering and possession of property obtained by crime. 

Two of the charges relate to Bard's alleged fraud and theft from Lamtrac. 

Gauvin said in early 2019, he was introduced to Bard through a mutual contact while looking for financing for the company that builds snow removal and forestry equipment.

In January, Gauvin said Bard came to Lamtrac's factory where they signed an agreement with various terms. 

The plan was for Bard to secure $46 million in total. Bard would invest most of the money, using proceeds to pay himself and cover repayment of the loan. Of the total, Gauvin said Lamtrac was supposed to get $5 million within four weeks and eventually a total of $15 million. 

The agreement also said Lamtrac's factory would be used as collateral. 

But first, the agreement called for Lamtrac to pay Bard's firm the $150,000 US deposit, which would be 99 per cent refunded if the financing didn't come through. 

Bard told him the deposit would be held in trust at a bank. Gauvin said that gave him a sense of security about the arrangement. 

Gauvin said he had to take out a private loan to cover that initial deposit. 

Asked how much of the financing Lamtrac received, Gauvin said "zero." He gave the same response when asked how much of the deposit Bard repaid. 

Gauvin said he continues to owe $130,000 to the widow of the man he borrowed the deposit money from. 

Gauvin was the only witness who testified Monday. The trial is expected to continue Tuesday. 

Last week, defence lawyer Tim Dubé filed an application asking for the case to be stayed, or halted, because of unreasonable delays since the charges were laid in July 2022. 

A 2016 Supreme Court of Canada decision says most trials in provincial court should be completed within 18 months of charges being laid. Going beyond that timeline can result in charges being stayed for violating a person's right to be tried within a reasonable time. 

Judge Anne Richard on Monday scheduled a hearing on that application for June 11.