Two Chilliwack women being sued for misappropriation of funds have responded to the civil lawsuit filed against them by their former employer, Xolhemet Society/WilmaB次元官网网址檚 Transition House.
Kathleen and Erin Mosa, mother and daughter, filed their response and counterclaim on May 22 in B.C. Supreme Court, denying all allegations against them, calling them B次元官网网址渇alse, and without merit.B次元官网网址�
The Mosas were fired in April due to alleged B次元官网网址渦nauthorized transactions,B次元官网网址� totalling $1.4 million, according to details in the original notice of claim filed by the society on May 2.
Kathleen and Erin were employed by B次元官网网址淴olhemet Society/WilmaB次元官网网址檚 Transition House,B次元官网网址� the legal name of the non-profit referred to in plaintiff documents as B次元官网网址淲ilmaB次元官网网址檚 Transition Society.B次元官网网址�
The counterclaim states the two Mosas were never given a chance to respond to the allegations of misappropriation of funds.
Contrary to the assertion in the societyB次元官网网址檚 notice of claim that the wrongful transactions B次元官网网址渄id not relate to any legitimate purpose pertaining to the societyB次元官网网址檚 business or affairs, did not further the societyB次元官网网址檚 mandate, were not justified business expenditures, and were not in the best interests of the society,B次元官网网址� the counterclaim states all of the expenditures in question were for board use, including those for fine dining, casino and hotels.
It also alleges there was a B次元官网网址渃onspiracyB次元官网网址� afoot among employees and board members B次元官网网址渢o oust Kathleen and Erin Mosa.B次元官网网址�
Kathleen Mosa was the societyB次元官网网址檚 executive director, and Erin Mosa was a B次元官网网址渉omelessness prevention and support worker,B次元官网网址� a supervisor, and more.
Kathleen was suspended by the board in September 2023 due to an alleged breach of confidentiality, and then terminated in April 2024 after an audit by MNP that allegedly uncovered financial improprieties.
In her counterclaim, Kathleen stated that the breach of confidentiality was actually perpetrated by a board member.
After being fired, Kathleen and Erin were cut off from accessing work emails, and asked to return electronics, keys, fobs, and work credit cards.
B次元官网网址淭he termination was a wilful and arbitrary breach of the contract and constituted a wrongful dismissal of Kathleen by the society, which is the subject of a counterclaim herein,B次元官网网址� the response document continued.
No one met with Kathleen in person but a letter came through counsel, falsely stating a B次元官网网址渢ermination meetingB次元官网网址� had taken place on April 9, 2024.
In fact the termination itself B次元官网网址渟hocked and devastatedB次元官网网址� Kathleen, and prior to the letter, Kathleen had no disciplinary history with the society.
Her counterclaim states that a group of employees, Ellen Clifford, Jayme Clifford, Kirstin Hall and Christine Devers (together referred to as the Clifford group) allegedly B次元官网网址渆ngaged in a co-ordinated and calculated effort to see Kathleen and Erin removed from the Society and to take control of the organization for themselves.B次元官网网址�
Her response further states that as ED, Kathleen had to reprimand members of the Clifford group or discipline them for concerns such as: time theft, falsifying sign-out sheets, and forging her signature on cheques.
B次元官网网址淎s a result of the above items, and for other reasons, the Clifford group developed jealousy and resentment toward Kathleen, and by extension, to Erin. This manifested in the Clifford group speaking negatively about Kathleen and the society in public and in private,B次元官网网址� the document continued.
The response denies all allegations about the transactions, which she said had been recorded and reconciled in the society books by other employees, approved by the board, and audited by MNP during the year audit without issues or objections.
B次元官网网址淜athleen denies that she has fraudulently, wrongfully, or secretly spent, misappropriated, or otherwise used any other societyB次元官网网址檚 funds for personal use or for purposes unrelated to the societyB次元官网网址檚 business or affairs.B次元官网网址�
The former ED said she did not B次元官网网址減ersonally benefitB次元官网网址� from any of the alleged unauthorized transactions, nor did Erin or anyone else in her family.
B次元官网网址淭he societyB次元官网网址檚 claim as a whole is the result of a malicious attempt by the Clifford group and the board members in support of the Clifford group to humiliate, embarrass and destroy KathleenB次元官网网址檚 career and her reputation.B次元官网网址�
Kathleen said the impact of the lawsuit and resulting media attention added to and aggravated the former EDB次元官网网址檚 existing mental distress caused by the termination in April.
Kathleen was 52 years old and had been employed by the WilmaB次元官网网址檚 for 16 years when she was let go in a B次元官网网址渃allous and insensitive mannerB次元官网网址� with officials B次元官网网址渢reating her like a criminalB次元官网网址� after many years of dedicated service.
The counterclaim states Kathleen Mosa will be seeking relief in the form of the following damages:
a. damages for wrongful dismissal and breach of contract;
b. damages for breach of the duty of good faith and honest performance;
c. general damages;
d. aggravated damages;
e. punitive damages;
f. special damages;
g. special costs or in the alternative, costs;
Xolhemet Society/WilmaB次元官网网址檚 Transition House provides a transition house, second stage housing and other supports to women and children fleeing interpersonal violence.
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