According to a story in the National Post, the federal government recently initiated legal proceedings against a former Rob Ford staffer to recoup funds that were allegedly obtained through a kick-back scheme involving federal government grants:

Mayor Rob Ford says he had no idea a former senior member of his office was involved in a federal government kickback scheme over a decade ago. Sheila Paxton, who is now policy director in the office of Deputy Mayor Norm Kelly, admitted to collaborating with a friend who would approve grant proposals submitted by Ms. Paxton to the former federal agency Human Resources Development Canada (HRDC), in exchange for a cut of the funding, the Toronto Star reported. It occurred between 1998 and 2003. The federal government has filed a lawsuit trying to recover more than $330,000 from Ms. Paxton and a co-accused, the Star reported. Ms. Paxton was never charged. She testified at the criminal trial of alleged co-conspirators.

The original Toronto Star story referred to in the National Post report states that Ms. Paxton testified that “I knew what we were doing was wrong,” and that “I know that I paid secret commissions and that’s a crime.” While testifying against her co-conspirators may have assisted her in avoiding criminal prosecution, it apparently did not preclude the federal government from bringing civil proceedings against Ms. Paxton to recover the funds in question.

N. Alcoba, “Rob Ford says he had no idea former aide was involved in kickback scheme a decade ago,” National Post, March 7, 2014.
M.C. Oved,  “Toronto city hall aide Sheila Paxton faces federal lawsuit seeking $330,000,” Toronto Star, March 7, 2014.