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Ontario Bond Scandal

This Ontario Bond Scandal was a scandal that really shook the government of Ontario in the early 1920s. At that time Ontario had been governed by the United Farmers of Ontario of E. C. Drury.

In the start of 1922 a scandal appeared over the purchase of government bonds. It seemed that P. Smith, the Ontario Treasurer, had given extra payments to fly to London to safe and sound financing for Ontario's debt to his close friend, A. Pepall.

The original offend was that A. Pepall had been paid large amount of more than $80 per day for that trip, in which he did not complete any authentic work.

However, when this scandal escalated, it was discovered that a fixed proportion of the payment (for the bond contracts) had also been paid to Smith that was present in Smith's bank account. On the other hand, Andrew Pepall's organization, owned by A. Jarvis had earned around more than 125,000 pounds as a solid profit from these arrangements, while these profits had been divided among Pepall, Jarvis and Smith equally. This worst scandal had played a significant role in the collapse of the UFO government in mid of 1923.

In 1924 Jarvis and Smith went on trial where they charged along with Jarvis's son and A. Pepall's brother H. Pepall for playing a trivial role in this worst scandal. On October 24, 1924, Jarvis and Smith were both found culpable of the scheme to deceive the government.

Jarvis was sentenced for 3 years to jail, while Smith received of six months and each fined about 600,000 dollars while Jarvis Jr. and H. Pepall were found not guilty.

After this A. Pepall had run away to California as at that moment conspiracy was not an extraditable crime. He was found not blameworthy of this worst Canadian scandal in late 1925.


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