Former Liberal MP Joe Peschisolido violated two parts of the House of Commons’ conflict of interest code for “chronically failing” to disclose his private interests to Ethics Commissioner Mario Dion’s office, a report from the watchdog has found.

However, the former MP for Steveston–Richmond East, B.C. will not face any penalties since he is no longer a federal representative.

Conservative MP Peter Kent had asked Dion to investigate Peschisolido in June, after Global News reported his former law firm had facilitated a secretive financial transaction that may have helped an alleged Chinese cartel “drug boss” launder his unexplained wealth through a Vancouver-area condo development.

An investigation by the news outlet found his law firm helped facilitate a real estate deal — known as a ‘bare trust’ deal — that helped an alleged criminal figure hide his ownership stake in a $7.8 million development.

Financial crime experts told Global News that the deal, though legal, should have raised “huge red flags” at the MP’s law firm regarding possible money laundering.

Kent had said based on the outlet’s reporting, that Peschisolido may have also failed to meet disclosure obligations required for MPs.

Reporting showed that Peschisolido was no longer a member of the Law Society of British Columbia, which had applied for and obtained a court order to take over and wind up his law firm.

That development contradicted Peschisolido’s required annual disclosure statement dated to December 2018 that said he was the sole owner, as well as director, president and secretary of the Peschisolido Law Corporation. MPs’ conflict of interest code requires changes in their corporation’s status to be disclosed.

The ethics commissioner’s report released on Wednesday said Peschisolido contravened the code’s disclosure obligations when he failed to properly note:

assets well in excess of $10,000 in the form a shareholder’s loan

a liability well in excess of $10,000, in t​he form of a personal guarantee of debt

a change in his marital status and a statement of t​​he private interests of his family member

the change of status in his corporation, the Peschisolido Law Corporation

Peschisolido was found to have twice violated subsection 20(1), which requires MPs to fully disclose their private interests and those of their family members to Dion as part of the initial compliance process after their election and during each annual review, as well as subsection 21(3), which requires MPs to notify the watchdog of any material change to the information contained in their disclosures within 60 days.

However, Peschisolido escapes any penalties since the House’s conflict of interest rules can’t sanction individuals who are no longer MPs.

“Given Mr. Peschisolido’s chronic failure to comply with the Code’s disclosure requirements, there is no doubt in my mind I would h​​​ave recommended that Parliament impose appropriate sanctions,” Dion said in a statement.

“I did not do so because Mr. Peschisolido is no longer a Member of the House of Commons.”

Peschisolido was defeated by Conservative Kenny Chiu in October’s vote.