WilmaB次元官网网址檚 Transition Society of Chilliwack filed a notice of civil claim on May 2 in B.C. Supreme Court against two former employees for misappropriating at least $1.4 million.
The defendants, Kathleen Mosa, the former executive director of WilmaB次元官网网址檚 Transition Society, and her daughter Erin Mosa, a former B次元官网网址渉omelessness prevention and support workerB次元官网网址� were terminated by the society on April 9, for B次元官网网址渏ust causeB次元官网网址� due to unauthorized transactions, the notice of civil claim states.
The pair had been in the societyB次元官网网址檚 employ since 2009. WilmaB次元官网网址檚 Transition Society provides transition house, second stage housing and other supports to women and children fleeing interpersonal violence.
It was a complaint received by the society in August 2023 that led to the process of filing a civil claim in court against the former employees.
The complainant alleged that Kathleen and Erin had misappropriated funds, which led to further investigation and discovery by society officials. They found that the pair had, since at least April 2020: B次元官网网址渇raudulently, wrongfully, and secretly, either individually or in concertB次元官网网址� charged personal purchases to the societyB次元官网网址檚 credit card and bank accounts, the claim states.
The wrongful charges and transactions, unrelated to the societyB次元官网网址檚 business, included cash withdrawals, personal cheques, e-transfers, as well as purchases of: groceries, gas, dining, furniture, clothing, electronics, gift cards, airfare, hotels, beauty products, alcohol, casino, and more. There were also purchases from stores such as Bootlegger, Old Navy, Smash + Tess, SportChek, Best Buy, and Apple.
The claim states WilmaB次元官网网址檚 Transition Society is bringing action against their ex-employees for: B次元官网网址渕isappropriation, conversion, conspiracy, fraud, breach of contract, unjust enrichment, negligence, gross negligence and breaches of fiduciary obligations.B次元官网网址�
As the executive director since 2012, Kathleen Mosa was a B次元官网网址渒ey employeeB次元官网网址� privy to the financial details, and B次元官网网址渁fforded discretion and autonomyB次元官网网址� to act in ways that could hurt the society, B次元官网网址渟uch that the society was vulnerable to Kathleen in her exercise of that discretion,B次元官网网址� the claim noted.
The unauthorized transactions were either for KathleenB次元官网网址檚 or ErinB次元官网网址檚 B次元官网网址減ersonal benefit,B次元官网网址� it alleged, or for that of their immediate family, and were not justified as business expenses.
B次元官网网址淭he unauthorized transactions did 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 claim continued.
There has been no evidence of any repayment by the defendants for any of the transactions.
B次元官网网址淭he extent of Kathleen and ErinB次元官网网址檚 misappropriation is not known. Since April 1, 2020, the society estimates that the unauthorized transactions total $1,397,704.B次元官网网址�
Since most of the societyB次元官网网址檚 funding comes from government sources through funding agreements, and the wrongful actions of the two former employees B次元官网网址渉ave caused the society to violate their contribution agreementsB次元官网网址� and B次元官网网址渟ignificantlyB次元官网网址� impacted the organizationB次元官网网址檚 future and financial viability, the claim states.
B次元官网网址淎s a result of unauthorized transactions Kathleen or Erin, or either one of them have been unjustly enriched to the corresponding deprivation of the society,B次元官网网址� it continued, adding thereB次元官网网址檚 B次元官网网址渘o juristic reason entitling Kathleen or Erin to that enrichment.B次元官网网址�
Under B次元官网网址渞elief soughtB次元官网网址� the claimants are seeking against the defendants, jointly and severally, damages in an amount to be proven at trial B次元官网网址渆qual to the total amountB次元官网网址� of the $1.4 million in unauthorized transactions. They seek damages for breach of trust, breach of fiduciary duty, negligence and more.
The society is also claiming the right to any property from the proceeds of the transactions, the right to trace all proceeds to their assets. In addition to a preservation order to preserve the value of their assets, theyB次元官网网址檙e seeking that the pair make restitution to the society, and disgorge any benefits.
The actions of the two ex-employees are described in the claim as B次元官网网址渕alicious, high-handed, callous and reprehensible,B次元官网网址� which entitles the society to punitive damages, it argues, and the audit and legal expenses were cited under the B次元官网网址渟pecial damagesB次元官网网址� section.
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The defendants have 21 days to file a response to the civil claim.
