A Quebec construction firm owner has alleged his accountant cheated him out of $1 million, and says his local credit union was aware of the money-laundering scam.

The alleged money-laundering scheme, according to a Radio-Canada report, involves construction entrepreneur Robert Thomas, a caisse populaire branch in Joliette and chartered accountant Jean Siminaro, who has been linked to the Hells Angels.

What is money laundering?

Money laundering is the process by which a person or organization converts cash and assets gained through criminal activity into a form that can be used legitimately and openly without drawing the attention of the authorities.

The broad aims of money laundering are threefold: To convert proceeds of crime to a less suspicious form; to conceal the illegal ownership or origin of criminal earnings; and to create a legitimate explanation for the source of the assets.

The RCMP say it is difficult to determine the exact size and scope of money laundering in Canada but that it is a multibillion-dollar industry.

Read more about money laundering.

Thomas says his signature was forged on hundreds of cheques drawn on his business account, which was managed by Siminaro for several years.

The entrepreneur has launched legal action against the caisse populaire branch and Quebec police are investigating the allegations, according to the CBC's French-language service.

In 2001, Thomas hired Siminaro, his neighbour, to do the accounting for his company Construction Robert Thomas, based in Repentigny.

A nearby branch of the caisse populaire — Quebec's credit union network — lent the company nearly $2 million to launch its building projects.

In 2007, Thomas received notice that he owed back taxes, and the caisse notified him that it planned to seize his condominiums for failing to repay the loan.

Thomas later discovered that 622 cheques amounting to about $1 million were written against the company's account without his knowledge.

Thomas alleges his former accountant forged his signature and used the chequing account to launder money. As well, the construction entrepreneur alleges, the caisse branch tolerated the situation by allowing the cheques without notifying him.

Construction entrepreneur Robert Thomas alleges his accountant cheated him out of $1 million. Construction entrepreneur Robert Thomas alleges his accountant cheated him out of $1 million. (Radio-Canada)"There were many cheques, but we can say we tolerated it, as we do sometimes for clients who sometimes have cash flow issues. We're there to provide solutions," credit union manager Jean Dénommé said in an interview with Radio-Canada.

The branch maintains Thomas should have kept tabs on his account and reported any irregularities.

Siminaro was arrested in 2009 and charged with conspiracy and money laundering in connection with Hells Angels boss Normand Marvin (Casper) Ouimet.

Siminaro has been suspended from the Quebec order of accountants pending the legal proceedings against him.

Ouimet was arrested in November 2010 on an outstanding warrant in connection with multiple murders linked to Quebec's biker wars. He is being held in detention at an undisclosed location.

With files from Marie-Maude Denis, Radio-Canada