On May 27, 2004, Gagliano filed a more than $4.5-million lawsuit against Prime Minister
Paul Martin and the government. The suit accused the defendants of deliberately attacking Gagliano's reputation and alleged that he was illegally and unjustly fired. He sought compensation for
wrongful dismissal, damage to his reputation and lost income. The lawsuit was eventually dismissed. Justice
John Gomery's initial report on the sponsorship scandal places much of the blame on Gagliano, making him the highest ranking Liberal to be charged with deliberate dishonesty, rather than negligence. Following the initial report, Paul Martin expelled him from the Liberal Party for life. On November 17, 2004, an article in the
New York Daily News alleged that Gagliano was associated with the
Bonanno crime family of
New York City. In the article, former
capo Frank Lino, turned
informant for the U.S.
Federal Bureau of Investigation, is quoted as saying Gagliano was first introduced to him during a meeting with other mob members in
Montreal in the early 1990s. Lino also stated that Gagliano was a
made man of the Mafia. Gagliano denied any links to the Mafia. Since August 2008, Gagliano resided with his family on a
vineyard in
Dunham, Quebec he purchased. In September 2006, he argued that Liberal leadership candidate
Joe Volpe was the victim of the same kind of anti-Italian sentiment that ended his own political career. ==Electoral record (partial)==