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Montreal's
Mayor Michael Applebaum has resigned, a day after his arrest on 14 fraud
charges.
As he
stepped aside, Mr Applebaum told reporters that the charges against him were
"unfounded".
He faces
allegations of defrauding government, breach of trust and conspiracy, among
others.
The city's
first Anglophone mayor in 100 years replaced Gerard Tremblay, who quit in
November amid allegations related to illegal donations.
Mr
Applebaum's arrest, in the early hours of Monday morning, is the latest in a
string of scandals to hit Canadian local politics.
In the
neighbouring province of Ontario, Toronto Mayor Rob Ford denies allegations
that he appeared in a video smoking crack cocaine.
"Being
mayor of Montreal is not something one can do while defending themselves
against these accusations," Mr Applebaum said.
"This
is why I am resigning as mayor of Montreal. It is a responsible thing to
do."
He said he
would "do everything I can to prove the accusations against me are
unfounded".
"I
have never taken a penny from anyone," he added.
Mr
Applebaum began his term as interim mayor in November, vowing to fight
corruption.
The charges
against him stem from alleged acts before he became city mayor, during the
years when he served as borough mayor, 2006-11.
Police
officials offered few details, but said the charges related to real estate
projects in Montreal.
Two
officials with ties to Mr Applebaum's borough, Cote-des-Neiges-Notre-Dame-de-Grace,
were also arrested by anti-corruption police on Monday.
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