Today's liberal scandal.... Tony Valeri

[Bakunin]

With the liberal, evry day as its scandal...

MP flips house for big profit

Gains $275,000 in 3 months

Steve Buist

John Rennison, The Hamilton Spectator

The Ridge Road home Tony Valeri bought in April and then sold in July for more than double what he paid for it.

Sheryl Nadler, The Hamilton Spectator

Tony Valeri, Hamilton East-Stoney Creek MP and Government House Leader.

Hamilton Liberal cabinet minister Tony Valeri more than doubled his money in three months when he flipped a property next to his home to the son of a prominent businessman with ties to the Liberal party.

Valeri, Liberal MP for Hamilton East-Stoney Creek, purchased the property on Ridge Road along the escarpment in upper Stoney Creek for $225,000 last April.

Three months later, Valeri sold the property for $500,000 to John Ng, son of Joe Ng, whose Hamilton-based engineering company has been a longtime supporter of the Liberals at the federal and provincial levels.

Valeri, who was Government House Leader prior to the election call, said there was nothing improper about his purchase or sale of the property.

“The transaction itself was conducted in a transparent fashion, with proper filings, proper disclosure,” said Valeri. “It was done with the advice of the (federal) Ethics Commissioner. “In fact, it was a real estate transaction like any other,” Valeri added. “I guess people will read into it what they want to read into it but I complied with all of the requirements and have done so in a very transparent manner.”

A spokesman for the Office of the Ethics Commissioner said he could not comment on Valeri’s financial transactions for privacy reasons but indicated that the Ethics Commissioner has not initiated an investigation of Valeri.

John Ng could not be reached for comment, and an attempt to contact him through his real estate lawyer was unsuccessful.

Joe Ng did not respond to numerous attempts by The Spectator to contact him. Valeri purchased the next-door property on April 29 for $225,000 from Leonard Davis, who had lived there for 50 years with his family. The property covers 0.25 hectares on Ridge Road, overlooking the edge of the escarpment. Set back from the road is a low-slung ranch-style house that appears to be in disrepair.

Davis, who now lives in a Stoney Creek nursing home, said health problems forced him to sell the house next to Valeri’s property. “My eyesight is so bad I can hardly see, so I had to get out of there,” said Davis, who is 76 years old.

He said he obtained opinions suggesting that his asking price reflected a fair market value for the property.

“I had it appraised by a couple of different real estate agents and it was close to what I got,” said Davis.

The 2005 property tax assessment for Davis’s former lot is listed as $201,000. The 2005 assessment for Valeri’s property is listed as $186,000.

Davis said he didn’t put the house on the market and he can’t remember if Valeri approached him about buying the property or if he approached Valeri about selling.

“(Valeri) was talking about needing some more property and that gave me a thought,” Davis said. “With my health and everything, I was going to have to move out of there and leave the house on its own, so that’s what kind of promoted it.”

The front yard of Davis’s former property now appears to be an auxiliary construction site for a house that is being built on Valeri’s property.

There are mounds of dirt, wooden pallets, construction materials and a portable toilet on the next-door lot.

A large new two-storey stone house is currently being constructed on Valeri’s property in front of an older split-level ranch-style house that has been the Valeri family home for more than a decade.

City records show that Valeri applied for the building permit in May 2003 and that it was eventually issued on May 2 last year.

The value of Valeri’s building permit is listed as $205,500.

Valeri said that Ng has been very accommodating in allowing construction materials to be stored on his property while the MP’s new home is being built.

He added that the adjacent home is currently vacant and he is not sure what Ng’s plans are for the property.

Valeri said he purchased the property next door because he intended to build his new house across the two lots but subsequently learned that the new home could be built on his original property.

“We were then approached (to sell the property) and basically the rest of it was handled by the lawyers,” said Valeri. “My concern was obviously compliance with the Ethics Commissioner. “They showed interest and I referred them to my lawyer,” Valeri added.

The MP did not put the property on the real estate market, and he did not indicate how the purchaser came to know that Valeri was interested in selling the property.

Three months after he purchased the property next door, Valeri sold it to John Ng for $500,000, an increase of $275,000 over Valeri’s purchase price.

Valeri said he made some improvements to the lot by burying some overhead wires and removing some poles, and that the $500,000 sale price fairly reflected the value of the property.

It’s not known if John Ng is connected to his father’s businesses.

Joe Ng’s numerous companies include JNE Engineering and JNE Consulting. The businesses employ more than 450 people in areas such as engineering, construction, consulting, automation, biotech and chemicals.

Ng has offices in Hamilton, Sault Ste. Marie, Pittsburgh, Fresno, Beijing, Shanghai and Hong Kong.

Valeri said that he went a step beyond what was required by the Ethics Commissioner when he sold the property to John Ng.

“I also required that the purchaser add a declaration that the purchaser had no contractual relationship or any other relationship with the federal government,” said Valeri, “in order to obviously ensure that this was a transaction that was transparent and complied with what the Ethics Commissioner was suggesting to me.”

Joe Ng’s engineering company has been a long-time financial supporter of the federal Liberals, with contributions totaling at least $16,000.

Valeri indicated that Joe Ng has contributed to his election campaigns in the past.

“Certainly I know that he has contributed to the Liberal party,” said Valeri.

In 1993, the largest single donation to the campaign of former Hamilton East MP Sheila Copps was a $5,500 contribution from Ng’s company.

That was the same year that Ng’s engineering firm won a large contract in China, with the help of a $4.5 million U.S. loan from the federal Export Development Corporation to the Chinese purchaser.

Ng’s company also benefitted from a special EDC loan in June 2002 to a Chinese bank that allowed Ng’s company to win a contract for a heating project.

Joe Ng has also participated in a number of Canadian trade missions.

He was listed as a participant in trade missions to China in 2005 and 2001, a Middle East trade mission in 1999, and a 1995 trade mission to South Korea, Thailand and Malaysia.

Valeri indicated that he has never been on a trade mission that included Joe Ng. Valeri was particularly angry that several documents related to the land sale have been posted anonymously on the Bourque Newswatch website.

“I think the bar has really been lowered in Canada with respect to the attacks that people are subject to in public life,” said Valeri.

“There’s an insinuation here and that seems to be why this was posted anonymously on a blog website,” he added.

Along Ridge Road past Tapleytown Road, Valeri’s neighbours are concerned excessive jumps in house prices will send their own property taxes spiralling out of control. Houses along that stretch back directly on the escarpment brow and range from upscale mansions to small bungalows and 1950s-style split-ranch homes.

All enjoy spectacular views of Stoney Creek and Lake Ontario.

Neighbour Bruna Canton she thinks Davis “should have gotten more” than what Valeri paid for it.

Canton knew Valeri paid $225,000 for the Davis house, but was unaware the Liberal politician had resold it.

“We all felt (Valeri) underpaid for it, but it was Mr. Davis’s decision,” she said yesterday. Canton is concerned homes in the area may sell for inflated prices and push up area property taxes.

“We know from past experience that people have tried to sell for inflated prices, and they haven’t got (their asking prices),” she said.

[August1991]

Here's the money shot:

That was the same year that Ng’s engineering firm won a large contract in China, with the help of a $4.5 million U.S. loan from the federal Export Development Corporation to the Chinese purchaser.

Ng’s company also benefitted from a special EDC loan in June 2002 to a Chinese bank that allowed Ng’s company to win a contract for a heating project.

Joe Ng has also participated in a number of Canadian trade missions.

This is how politics and business mix in Canada. I think Conrad Black accurately said that it is impossible to do business on a "large" scale in Canada without having friends in government.

----

Interesting post, Bakunin, but forum rules are that you should provide a link and not copy/post an entire article.

[geoffrey]

Here's the money shot:

That was the same year that Ng’s engineering firm won a large contract in China, with the help of a $4.5 million U.S. loan from the federal Export Development Corporation to the Chinese purchaser.

Ng’s company also benefitted from a special EDC loan in June 2002 to a Chinese bank that allowed Ng’s company to win a contract for a heating project.

Joe Ng has also participated in a number of Canadian trade missions.

This is how politics and business mix in Canada. I think Conrad Black accurately said that it is impossible to do business on a "large" scale in Canada without having friends in government.

Questionable grounds I must say. It's tough to say theres a real link, I couldn't go calling this a scandal, at least not politically.

However, the fact that Valeri underpaid a sick old man and then resold his property for twice the price is a very sad reflection on tha man's character.

[scribblet]

In all fairness I don't see why this is a scandal, the owner had it appraised and sold for the appraised value apparantly. There's no law against flipping a property, wish I could be so lucky.

[August1991]

In all fairness I don't see why this is a scandal, the owner had it appraised and sold for the appraised value apparantly. There's no law against flipping a property, wish I could be so lucky.

Either the previous owner got too low a price when he sold the property to Valeri or the subsequent buyer overpaid when he bought it from Valeri or there was some combination of the two. In any case, Valeri walked away with about $250,000.

Based on who the subsequent buyer is, I have a suspicion he gladly overpaid for the property. In doing so, he made a useful friend in government.

[Riverwind]

In all fairness I don't see why this is a scandal, the owner had it appraised and sold for the appraised value apparantly. There's no law against flipping a property, wish I could be so lucky.

Actually, the are laws against flipping properties between non-arms length parties...

[newbie]

Everything is a scandal to a Conversative

[JerrySeinfeld]

Everything is a scandal to a Conversative

are u blind? the inflated price valeri recieved was a kickback for government contracts/loans given to ng's father

[geoffrey]

Everything is a scandal to a Conversative

Not hard when your Opposition to the Liberals.

[justcrowing]

Here's the money shot:

That was the same year that Ng’s engineering firm won a large contract in China, with the help of a $4.5 million U.S. loan from the federal Export Development Corporation to the Chinese purchaser.

Ng’s company also benefitted from a special EDC loan in June 2002 to a Chinese bank that allowed Ng’s company to win a contract for a heating project.

Joe Ng has also participated in a number of Canadian trade missions.

This is how politics and business mix in Canada. I think Conrad Black accurately said that it is impossible to do business on a "large" scale in Canada without having friends in government.

Questionable grounds I must say. It's tough to say theres a real link, I couldn't go calling this a scandal, at least not politically.

However, the fact that Valeri underpaid a sick old man and then resold his property for twice the price is a very sad reflection on tha man's character.

Here is the link to the Hamilton Spectator regrding Valeri - http://w3t.org/?u=hyx

[justcrowing]

Everything is a scandal to a Conversative

Nawh, it's only because the Liberals are full of scandals - neverending ones!! Kinda like having ongoing dessert.

[fellowtraveller]

Based on who the subsequent buyer is, I have a suspicion he gladly overpaid for the property. In doing so, he made a useful friend in government.

I think of it from the other side.

Mr. Ng already had a valuable friend in government - Valeri- and it was time to reward him for his 'friendship'. It sounds like old Mr. Davis got fair market value for the property, which means it was massively overpriced when Ng bought it.

[kimmy]

Everything is a scandal to a Conversative

The appearance, if you're having a hard time following, is that this person Joe Ng paid Tony Valeri far more than the property was worth.

Perhaps Joe Ng is just not a very smart guy and had no idea that he was paying twice market value. Who knows, maybe Joe just made a foolish purchase. However, the article seems to indicate that Joe Ng was a successful businessman who was able to arrange government financing to land a big contract, so I'm somewhat skeptical as to whether he was really so naive as to the actual value of the property.

Suppose for a moment that Joe Ng did know he was paying Tony Valeri far too much for the property. Think about reasons why he would do so. Think about that for a while and write back to me if you're still puzzled as to why this has the appearance of impropriety.

-k

[geoffrey]

Everything is a scandal to a Conversative

The appearance, if you're having a hard time following, is that this person Joe Ng paid Tony Valeri far more than the property was worth.

Perhaps Joe Ng is just not a very smart guy and had no idea that he was paying twice market value. Who knows, maybe Joe just made a foolish purchase. However, the article seems to indicate that Joe Ng was a successful businessman who was able to arrange government financing to land a big contract, so I'm somewhat skeptical as to whether he was really so naive as to the actual value of the property.

Suppose for a moment that Joe Ng did know he was paying Tony Valeri far too much for the property. Think about reasons why he would do so. Think about that for a while and write back to me if you're still puzzled as to why this has the appearance of impropriety.

-k

All this thinking kimmy, sounds like a Liberal ad. Just add a "He's not saying" and your on your way to being a Liberal ad director.

I have no doubt that there is some questionable activity here, but nothing can be actually proven, thats the problem. I'm more concerned just with the plain and simple ethics of flipping a property from an old sick man. If Valeri wasn't one of the most dishonest ministers out there I'd give him the benifet of the doubt, but even by Liberal standards I don't like the man.

In the end, it won't matter, he will not be re-elected in his Hamilton riding, so Ng just wasted his money buying this favour.