Settlement reached in Calgary lawsuit connected to alleged Russian bribe plot

Former Calgary mayor Naheed Nenshi, left, is at the centre of a story about an alleged plot to entrap him into accepting illegal Russian money. Shane Wenzel, right, is a local business owner who is suing media organization Canadaland as well as a former political fixer for alleging he had involvement in the plot. (CBC, Shane Homes/Facebook - image credit)

Shane and Edith Wenzel will drop their defamation lawsuit filed against news site Canadaland after it published an investigation into an alleged plan to entrap former Mayor Naheed Nenshi in a Russian bribery plot.

In the fall of 2022, Canadaland reported that several people, including political fixer David Wallace — who was the whistleblower for the news site — were involved in an alleged attempt to remove Nenshi from office by videotaping him taking illegal Russian money.

The stories suggested the Wenzels helped paid Wallace, through political fundraiser Prem Singh.

The mother and son have never denied providing money to Singh but said they were unaware of how those funds would be used.

Settlement condition

The out-of-court settlement, which will go before a judge on Friday for final sign-off, requires Canadaland to publish a statement that the Wenzels were unaware of a plan to entrap the former mayor, according to documents filed at the Calgary courthouse.

The agreed upon wording reads: "Canadaland accepts that there exists no evidence that Shane or Edith Wenzel were aware of or knowingly contributed to a plan to deceive and entrap Mayor Nenshi."

Both parties agreed to the discontinuance without costs awarded to either side.

The action against Wallace and Singh remain active.

Singh has not indicated an intention to settle, according to the court documents, while Wallace is noted in default for failing to file a statement of defence.

Despite the alleged attempt to lure Nenshi into a bribery plot, he took no money. After the Canadaland reports, the former mayor demanded a police investigation.

Earlier this week, the Alberta Crown Prosecution Service (ACPS) said it would not pursue criminal charges.

The ACPS said it had reviewed the evidence and "determined that it did not meet the prosecution standard."