Despite clear indications that the project had a high chance of failure, including reports from outside consultants identifying serious deficiencies with Canadian American Transportation Systems’ (CATS) financial plan as well as difficulty verifying that CATS had adequate private equity, former city officials moved the project forward and did not take critical steps to protect the public’s investment in the project.

The audit findings detail how former Rochester city officials:

Did Not Verify Equity.

CATS principals Dominick DeLucia and Brian Prince claimed to have paid $5 million in expenses from their personal bank accounts, not with CATS accounts. Auditors could not verify that these expenses were for CATS

Failed to Exercise Due Diligence.

Did Not Solicit Competition.

No Independent Oversight.

Did Not Adequately Secure Loans.

Entered into Bad Port Lease Agreements.