Wilma乌鸦传媒檚 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 Wilma乌鸦传媒檚 Transition Society, and her daughter Erin Mosa, a former 乌鸦传媒渉omelessness prevention and support worker乌鸦传媒� were terminated by the society on April 9, for 乌鸦传媒渏ust cause乌鸦传媒� due to unauthorized transactions, the notice of civil claim states.
The pair had been in the society乌鸦传媒檚 employ since 2009. Wilma乌鸦传媒檚 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: 乌鸦传媒渇raudulently, wrongfully, and secretly, either individually or in concert乌鸦传媒� charged personal purchases to the society乌鸦传媒檚 credit card and bank accounts, the claim states.
The wrongful charges and transactions, unrelated to the society乌鸦传媒檚 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 Wilma乌鸦传媒檚 Transition Society is bringing action against their ex-employees for: 乌鸦传媒渕isappropriation, conversion, conspiracy, fraud, breach of contract, unjust enrichment, negligence, gross negligence and breaches of fiduciary obligations.乌鸦传媒�
As the executive director since 2012, Kathleen Mosa was a 乌鸦传媒渒ey employee乌鸦传媒� privy to the financial details, and 乌鸦传媒渁fforded discretion and autonomy乌鸦传媒� to act in ways that could hurt the society, 乌鸦传媒渟uch that the society was vulnerable to Kathleen in her exercise of that discretion,乌鸦传媒� the claim noted.
The unauthorized transactions were either for Kathleen乌鸦传媒檚 or Erin乌鸦传媒檚 乌鸦传媒減ersonal benefit,乌鸦传媒� it alleged, or for that of their immediate family, and were not justified as business expenses.
乌鸦传媒淭he unauthorized transactions did not relate to any legitimate purpose pertaining to the society乌鸦传媒檚 business or affairs, did not further the society乌鸦传媒檚 mandate, were not justified business expenditures and were not in the best interests of the society,乌鸦传媒� the claim continued.
There has been no evidence of any repayment by the defendants for any of the transactions.
乌鸦传媒淭he extent of Kathleen and Erin乌鸦传媒檚 misappropriation is not known. Since April 1, 2020, the society estimates that the unauthorized transactions total $1,397,704.乌鸦传媒�
Since most of the society乌鸦传媒檚 funding comes from government sources through funding agreements, and the wrongful actions of the two former employees 乌鸦传媒渉ave caused the society to violate their contribution agreements乌鸦传媒� and 乌鸦传媒渟ignificantly乌鸦传媒� impacted the organization乌鸦传媒檚 future and financial viability, the claim states.
乌鸦传媒淎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,乌鸦传媒� it continued, adding there乌鸦传媒檚 乌鸦传媒渘o juristic reason entitling Kathleen or Erin to that enrichment.乌鸦传媒�
Under 乌鸦传媒渞elief sought乌鸦传媒� the claimants are seeking against the defendants, jointly and severally, damages in an amount to be proven at trial 乌鸦传媒渆qual to the total amount乌鸦传媒� 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, they乌鸦传媒檙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 乌鸦传媒渕alicious, high-handed, callous and reprehensible,乌鸦传媒� which entitles the society to punitive damages, it argues, and the audit and legal expenses were cited under the 乌鸦传媒渟pecial damages乌鸦传媒� section.
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The defendants have 21 days to file a response to the civil claim.
