A former executive at Philip Services Corp. was charged today by the RCMP with defrauding the company of roughly $28 million.

Robert Waxman, 49, of Ancaster, Ont., faces 12 counts of fraud over $5,000.

Police allege that Robert Waxman defrauded Philip Services of approximately $28 million between January 1, 1996 and December 31, 1997, when Waxman was president of the Metals Recovery Group of Philip Services and a director of the company.

RCMP allege he the crime of fraud by a series of complex fraudulent transactions and that this ultimately led to profits being siphoned off into “shell companies” in which police allege he was a beneficial owner. Police further allege that the accused committed approximately 80 of these fraudulent transactions. None of these allegations have been proven.

The Ontario Securities Commission released a decision on December 7, authorizing OSC staff to disclose 10 documents over which Philip Services asserted a claim of privilege. The documents were produced by Deloitte & Touche, Philip’s auditor, and by Philip. They included: correspondence between Philip and its legal counsel on various issues including Philip’s legal disclosure obligations in the United States or Ontario; handwritten notes of two audit committee meetings of Philip and a letter written by Philip’s Canadian counsel enclosing a memorandum.

The OSC ruled that all the documents that were the subject of the motion are no longer privileged and may be disclosed to the respondents.

The five-year criminal investigation was a joint effort between the RCMP Greater Toronto Area Commercial Crime Section and the Hamilton Police Service Major Fraud Unit.

Waxman was scheduled to appear in Hamilton court later today.