Sentencing update - RCMP charges federal consultant for fraudulent billing

November 5, 2026 - Ottawa, Ontario
From: Federal Policing Central Region

Content

In April 2026 the Royal Canadian Mounted Police (RCMP) Federal Policing – Central Region charged, Mr. Andrew McDermott, a federal government consultant for fraudulently overbilling the Government of Canada. 

In the summer of 2021, Public Services and Procurement Canada (PSPC) launched an investigation into a federal consultant who concurrently worked on multiple Shared Services Canada contracts held by multiple different private sector contractors reporting to multiple different technical authorities. Evidence indicated that the consultant had submitted fraudulent timesheets that resulted in overbilling between May 2020 and June 2022. PSPC referred the case to the RCMP for a possible criminal investigation.

Following the referral, the RCMP’s Sensitive and International Investigations (SII) Unit opened an investigation after it was determined that the consultant may have been fraudulently overbilling. Investigators obtained statements from prime contractors while examining timesheets to confirm that the consultant had overbilled the Government of Canada on separate contracts. The RCMP also uncovered that while he was collecting HST, the contractor failed to pay his remittance to the Canada Revenue Agency (CRA).

As a result, Mr. McDermott paid a restitution amount of $11,079.00 and pleaded guilty to Fraud Under $5000 Section 380(1)(b) of the Criminal Code of Canada.

On October 21^st, 2026, Mr. McDermott was sentenced to a12-month conditional sentence.

At the same time, Mr. McDermott pleaded guilty to the Excise Tax Act charge brought forward by the CRA.

The RCMP would like to thank its partners, including the CRA and PSPC, for their collaboration on this investigation.

Quotes

The RCMP Sensitive and International Investigations Unit remains steadfast in its commitment to investigate fraud against the Government of Canada, protecting public resources, and preserving confidence in the integrity of federal institutions. This investigation demonstrates the significant results that can be achieved when federal partners collaborate, share expertise, and work toward a common objective.

Supt. Jeremie Landry, Officer in Charge, Sensitive and International Investigations Unit, RCMP Central Region

The Government of Canada is committed to taking action against improper, unethical and illegal business practices. Public Services and Procurement Canada has safeguards in place to detect wrongdoing and protect the integrity of the federal procurement system. We thank the RCMP for their thorough investigation, and the Ontario Court of Justice for holding this individual accountable for their misconduct while protecting federal expenditures.

Catherine Poulin, Assistant Deputy Minister, Departmental Oversight Branch, Public Services and Procurement Canada

Individuals and businesses who engage in fraudulent activities and fail to meet their tax obligations undermine the fairness of Canada's tax system. The CRA's Criminal Investigations Directorate (CID) works closely with its partners to investigate suspected financial crimes and ensure that those who deliberately contravene the law are held accountable.

Eric Ferron, Director General, CID, CRA

Quick facts

• The SII unit investigates sensitive and international crimes threatening Canada's interests such as those directed towards the institutions of government, public officials, the integrity of the Crown, or otherwise imperil Canada's political, economic and social integrity. 

• Individuals who have information related to illegal or illicit activities in Government of Canada contracting can report it anonymously to the Federal Contracting Fraud Tip Line or directly to the Special Investigations and Disclosure Directorate by emailing them at spac.dgsdivulgationinterne-dobinternaldisclosure.pspc@tpsgc-pwgsc.gc.ca.

• The RCMP’s core values guide our daily activities. All employees are expected to live and model the values in their work. This investigation shows our commitment to serving with excellence. 

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