September 18, 2017

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Vol. CXXXVIII, No. 3 September 18, 2017 thevarsity.ca —— University of Toronto’s Student Newspaper Since 1880

Annex residents speak out against fraternities

Journey to the Great White North A student travels to the Arctic to conduct research

“Numerous fires, numerous drug issues, and numerous sexual assaults” among cited issues Jillian Schuler Varsity Contributor

Fraternity and sorority housing may face significant licensing requirements changes by the end of the month. As The Varsity previously reported, the city’s Executive Committee will review whether or not to remove the multi-tenant housing licensing exemption from fraternity and sorority houses. If the change proposed by Ward 20 Councillor Joe Cressy is approved, then Greek houses around U of T may be shut down if they do not successfully secure a multi-tenant housing license. Residents push for action Cressy’s move to have the Executive Committee address the role of fraternities and sororities came on June 5, and it was supported by letters from the heads of the Annex Residents’ Association, Bay Cloverhill Community Association, Grange Community Association, Harbord Village Residents’ Association, and the Huron Sussex Residents’ Organization. Following repeated incidents going unpunished, Sterns wrote a letter to Mayor Tory about the issue on June 15. The letter listed several cases of inappropriate conduct on behalf of the fraternity houses residing in the Annex, including a police raid confiscating over $125,000 worth of drugs in 2008, the death of a young man who fell from a window of Beta Theta Pi fraternity house in 2013, and the stabbing of three people outside of a frat party in 2015. Following the 2011 decision, Sterns expressed skepticism of any more collaborative promises on behalf of fraternities and sororities, and urged the Mayor to support Greek, page 3

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Former CFS-owned company linked to secret bank account Audit of hidden account discloses original purpose to pay off debt for travelcuts Josie Kao Associate News Editor

On May 31, the Canadian Federation of Students (CFS) released an audit of a hidden bank account discovered by members of its “at-large executive” in 2014. The summary report of the audit revealed that the original purpose of the account was to pay off debts for travelcuts —then known as Canadian University Travel Service — a travel agency that was majority-owned by the CFS at the time. travelcuts and the CFS travelcuts was founded by CFS predecessors as a low-budget travel agency for students. When the CFS was created, it took over running the company until it was eventually sold in 2009. travelcuts “was created to be a service, first and foremost, and a revenue stream, second,” states the CFS’ National Executive Report (NEP) from their 2009 Annual General Meeting.

Swimming to victory

Although the company was originally created for student travel, due to its lowbudget model, it soon attracted a larger market and substantially grew its revenue. In 2001, while it was entirely under CFS ownership, travelcuts reported sales of nearly $220 million. However, due to its inability to continue selling cheap tickets, the advent of the internet travel services, and the 2008 economic downturn, the company soon experienced financial troubles and the CFS began the process of establishing a business partnership. In July 2009, the CFS opened an account with CIBC in order to help travelcuts manage its debt. This account would eventually go on to be used for unauthorized transactions between 2010 and 2014. On July 14, 2009, the federation deposited $1.6 million into the account as a loan “to facilitate the receivership and sale process as Travel CUTS was experiencing cash-flow problems. The loan was repaid

in full by Travel CUTS to [CFS-Services],” wrote CFS Treasurer Peyton Veitch in an email to The Varsity. In October 2009, the CFS sold the company to Merit Travel Group Inc., and the last authorized use of the account was on May 6, 2010, two months before the unauthorized transactions began. Hidden bank account audit Although the summary of the audit does not go into details of its unauthorized transactions, it does give some explanations of the travelcuts-related uses. According to a source close to the CFS, the CIBC account was used by the federation to deposit travelcuts money and withdraw it later with interest. The summary audit supports this statement, showing that after the CFS deposited the $1.6 million into the account for travelcuts’ debt, “the sum was returned to the CFS-S, apparently with some interest,” which amounted to $368.22.

Olympian, OUA Champion Kylie Masse speaks with The Varsity, page 24

CFS, page 3


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