A man employed by a company in northern New Brunswick recounted in court on Monday how Daniel Bard presented a loan scheme to him as an “innovative” concept similar to those utilized by major U.S. investment firms like Goldman Sachs. Herve Auclair testified during Bard’s retrial in Moncton, where he faces 19 charges, including theft, fraud, and money laundering, with the legal proceedings now in their second week. These charges were filed in 2022 after a previous trial last April ended prematurely due to Bard’s lawyer withdrawing due to health reasons.
Auclair revealed that he previously oversaw projects for HIL Group, a holding company based in Charlo seeking funding for a sewage transformation venture in collaboration with a European entity. He provided further insights into Bard’s proposed loan arrangement during a meeting with Luc Bernard, the owner of HIL Group, in 2016. Bard allegedly mentioned that a $100,000 deposit into a trust account could secure an $85 million loan with the assistance of international investors, describing the plan as “credit enhancement.”
Under Bard’s proposal, $4 million of the $85 million loan would be allocated to HIL Group for the initial project phase, with an additional $15 million earmarked for the subsequent phase. The remaining funds were purportedly intended for investment in the stock market to generate profits, which would be used to repay investors, cover Bard’s fees, and settle HIL Group’s debts. Victims who testified previously outlined a similar loan structure proposed by Bard.
Auclair stated that Bard marketed this financing model as a novel approach being utilized globally to fund various projects. The appeal of Bard’s plan for HIL Group lay in its promise to generate adequate returns to repay the company’s debts, thus minimizing financial risks. Despite the assurances, Auclair mentioned that the company never recouped its investment.
During the trial, the defence questioned whether negative media coverage of Bard’s legal issues might have deterred potential investors from participating in the loan plan. However, Auclair denied that media reports influenced the deal’s outcome, emphasizing that discussions were underway long before the news emerged. The proceedings adjourned on Monday afternoon as the Crown had exhausted its list of witnesses for the day, with the trial scheduled to resume on Tuesday.
