Two Chilliwack women being sued for misappropriation of funds have responded to the civil lawsuit filed against them by their former employer, Xolhemet Society/Wilma含羞草研究社檚 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 含羞草研究社渇alse, and without merit.含羞草研究社�
The Mosas were fired in April due to alleged 含羞草研究社渦nauthorized transactions,含羞草研究社� 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 含羞草研究社淴olhemet Society/Wilma含羞草研究社檚 Transition House,含羞草研究社� the legal name of the non-profit referred to in plaintiff documents as 含羞草研究社淲ilma含羞草研究社檚 Transition Society.含羞草研究社�
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 society含羞草研究社檚 notice of claim that the wrongful transactions 含羞草研究社渄id not relate to any legitimate purpose pertaining to the society含羞草研究社檚 business or affairs, did not further the society含羞草研究社檚 mandate, were not justified business expenditures, and were not in the best interests of the society,含羞草研究社� 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 含羞草研究社渃onspiracy含羞草研究社� afoot among employees and board members 含羞草研究社渢o oust Kathleen and Erin Mosa.含羞草研究社�
Kathleen Mosa was the society含羞草研究社檚 executive director, and Erin Mosa was a 含羞草研究社渉omelessness prevention and support worker,含羞草研究社� 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.
含羞草研究社淭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,含羞草研究社� the response document continued.
No one met with Kathleen in person but a letter came through counsel, falsely stating a 含羞草研究社渢ermination meeting含羞草研究社� had taken place on April 9, 2024.
In fact the termination itself 含羞草研究社渟hocked and devastated含羞草研究社� 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 含羞草研究社渆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.含羞草研究社�
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.
含羞草研究社淎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,含羞草研究社� 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.
含羞草研究社淜athleen denies that she has fraudulently, wrongfully, or secretly spent, misappropriated, or otherwise used any other society含羞草研究社檚 funds for personal use or for purposes unrelated to the society含羞草研究社檚 business or affairs.含羞草研究社�
The former ED said she did not 含羞草研究社減ersonally benefit含羞草研究社� from any of the alleged unauthorized transactions, nor did Erin or anyone else in her family.
含羞草研究社淭he society含羞草研究社檚 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 Kathleen含羞草研究社檚 career and her reputation.含羞草研究社�
Kathleen said the impact of the lawsuit and resulting media attention added to and aggravated the former ED含羞草研究社檚 existing mental distress caused by the termination in April.
Kathleen was 52 years old and had been employed by the Wilma含羞草研究社檚 for 16 years when she was let go in a 含羞草研究社渃allous and insensitive manner含羞草研究社� with officials 含羞草研究社渢reating her like a criminal含羞草研究社� 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/Wilma含羞草研究社檚 Transition House provides a transition house, second stage housing and other supports to women and children fleeing interpersonal violence.
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