A gambling watchdog group is suggesting the Ontario Provincial Police could be in a conflict of interest as they investigate suspected fraud at the province's lottery corporation, which has a former OPP officer as its security chief.

Following a scathing report by the Ontario ombudsman, the Ontario Lottery and Gaming Corporation has been ordered by the provincial government to hand over files on insider wins to the OPP so they can investigate tens of millions in suspicious lottery wins by insiders.

But concerns have been raised about Michael Sharland, a former OPP chief superintendent and the second-highest-paid OPP officer in the province, who has been working on secondment as the head of security at the OLG for the past three years.

Two weeks ago, he retired from the provincial police force after CBC raised concerns about his double duty.

Gambling Watch Canada is worried that Sharland's connection to the OPP will affect their investigation.

"It would be hard for them to question what he was doing, being that just only a few weeks ago he was one of the most senior police officers in Ontario," said Gambling Watch Canada member Roger Horbay.

No more secondments to OLG

OPP Insp. Dave Ross said the force has reviewed Sharland's secondment to the OLG and has decided to end any such appointments to the lottery corporation in the future.

"We've elected not to continue with it to ensure there wasn't a perception or real conflict of interest," said Ross.

Sharland has worked in a variety of temporary assignments during the past 12 years.

In his latest one, at the OLG, Sharland continued to accrue time toward his police force pension, and his OPP salary, about $182,000 in 2005, was covered by the lottery corporation.

OLG dropped probe into insider wins: ombudsman

In the Monday report by Ontario Ombudsman André Marin, he wrote that Sharland tried in 2004 to shut down any new OLG investigations into insider lottery fraud.

At the time, the OPP had been investigating the case of 82-year-old Bob Edmonds, a Coboconk man who alleged his $250,000 lottery ticket was stolen by a retail clerk.

"We will not be conducting any new insider win investigations or continuing any ongoing insider win investigations until further notice," the report quotes an Aug. 13, 2004, e-mail from Sharland.

Marin's report said that when the agency was in the midst of growing concerns about possible insider fraud, it chose to reduce rather than increase the number of investigations.

The report, released Monday, accused the OLG of fixating on profits instead of customer service and called for an end to the agency's role as its own regulator.

Sharland did not return calls from CBC News requesting comment.