Wilma含羞草研究社檚 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含羞草研究社檚 Transition Society, and her daughter Erin Mosa, a former 含羞草研究社渉omelessness prevention and support worker含羞草研究社� were terminated by the society on April 9, for 含羞草研究社渏ust cause含羞草研究社� due to unauthorized transactions, the notice of civil claim states.

The pair had been in the society含羞草研究社檚 employ since 2009. Wilma含羞草研究社檚 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: 含羞草研究社渇raudulently, wrongfully, and secretly, either individually or in concert含羞草研究社� charged personal purchases to the society含羞草研究社檚 credit card and bank accounts, the claim states.

The wrongful charges and transactions, unrelated to the society含羞草研究社檚 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含羞草研究社檚 Transition Society is bringing action against their ex-employees for: 含羞草研究社渕isappropriation, conversion, conspiracy, fraud, breach of contract, unjust enrichment, negligence, gross negligence and breaches of fiduciary obligations.含羞草研究社�

As the executive director since 2012, Kathleen Mosa was a 含羞草研究社渒ey employee含羞草研究社� privy to the financial details, and 含羞草研究社渁fforded discretion and autonomy含羞草研究社� to act in ways that could hurt the society, 含羞草研究社渟uch that the society was vulnerable to Kathleen in her exercise of that discretion,含羞草研究社� the claim noted.

The unauthorized transactions were either for Kathleen含羞草研究社檚 or Erin含羞草研究社檚 含羞草研究社減ersonal benefit,含羞草研究社� it alleged, or for that of their immediate family, and were not justified as business expenses.

含羞草研究社淭he unauthorized transactions did 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 claim continued.

There has been no evidence of any repayment by the defendants for any of the transactions.

含羞草研究社淭he extent of Kathleen and Erin含羞草研究社檚 misappropriation is not known. Since April 1, 2020, the society estimates that the unauthorized transactions total $1,397,704.含羞草研究社�

Since most of the society含羞草研究社檚 funding comes from government sources through funding agreements, and the wrongful actions of the two former employees 含羞草研究社渉ave caused the society to violate their contribution agreements含羞草研究社� and 含羞草研究社渟ignificantly含羞草研究社� impacted the organization含羞草研究社檚 future and financial viability, the claim states.

含羞草研究社淎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,含羞草研究社� it continued, adding there含羞草研究社檚 含羞草研究社渘o juristic reason entitling Kathleen or Erin to that enrichment.含羞草研究社�

Under 含羞草研究社渞elief sought含羞草研究社� the claimants are seeking against the defendants, jointly and severally, damages in an amount to be proven at trial 含羞草研究社渆qual to the total amount含羞草研究社� 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含羞草研究社檙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 含羞草研究社渕alicious, high-handed, callous and reprehensible,含羞草研究社� which entitles the society to punitive damages, it argues, and the audit and legal expenses were cited under the 含羞草研究社渟pecial damages含羞草研究社� section.

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The defendants have 21 days to file a response to the civil claim.