In 1997, Carle was named Commander of the Victorian Order by Elizabeth II.
During his time at the PMO, Carle was responsible for organizing the security for the November 1997 APEC summit in Vancouver that saw the RCMP crush demonstrators protesting against human rights abuses in China and Indonesia.
Judge Hughes accused Carle of "throwing his weight around" and attempting to interfere with security arrangements.
Hughes concluded that the RCMP had used excessive force that was in violation of the Charter of Rights and Freedoms as the purpose of the RCMP actions were to silence the protesters, thereby violating the freedom of speech guaranteed by the Charter.After leaving the PMO in 1998, Carle took up a post as vice-president responsible for corporate affairs at the Business Development Bank of Canada (BDBC).
Carle admitted to the Gomery Commission in 2005 that he had created a $125, 000 phoney paper trail to hide a sponsorship deal while at the BDBC.
Carle transferred money from the Public Works Department through the BDBC to a Montreal TV producer so that the public would not learn the federal government had spent $125,000 dollars on the TV series Le Canada Millennaire.
When Justice John Gomery asked Carle that "If this were a drug deal, it would be called money-laundering", to which Carle replied "You're not wrong".
Carle argued that his actions were justified because: "I felt it was a benefit for the bank to get an extra $125,000 in advertising without having to pay its own money, I did not do this in bad faith.
We were kind of a transmission belt." In September 2001, Carle became chief of operations at the Just for Laughs comedy festival in Montreal, which received a doubling of federal sponsorship money by the Public Works ministry headed by Alfonso Gagliano, and then what the journalist Lawrence Martin called a highly unusual retroactive grant of $100,000.
In April 2002, Carle left his post at the Just for Laughs festival for "personal reasons".Besides attracting controversy for his role in the sponsorship scandal, Carle was also involved in the Grand-Mère Affair.
Carle was involved in the firing of François Beaudoin, president of the BDBC, in 1999 after he attempted to call in the loan to the Grand-Mère Inn.
Beaudoin sued for wrongful dismissal following his sacking.
In February 2004, Beaudoin won his wrongful dismissal suit against the Business Development Bank of Canada.
Justice Andre Denis ruled in favor of Beaudoin's claim that he was fired for political reasons in 1999 for trying to call in the loan on the Grand-Mère Inn, ruled that Carle was guilty of making false criminal and civil charges of wrongdoing against Beaudoin to discredit him for suing the bank, accused Carle of committing perjury during the trial and declared given the "unspeakable injustice" Beaudoin had suffered, told the government not to appeal his ruling because they would be wasting taxpayers' money if they did.
In March 2004, Carle was named as someone involved in the sponsorship scandal.
During the Gomery commission hearings in 2005, Lucienne Robillard testified that she was very surprised that Carle had been put in charge of Treasury Board policies on communication, public opinion polls and advertising, saying such a job was not normally performed by "political staff" from the PMO such as Carle.