Sandy Bay CFS launches lawsuit against former executive director
Sandy Bay Child and Family Services has filed a lawsuit against its former executive director alleging he used money from the organization for personal gain instead of helping kids and families.
A statement of claim was filed in the Court of King's Bench on Tuesday and named Richard De La Ronde – who is the former director – Radka Inc. – a corporation run by De La Ronde – Timothy Catcheway – a director on the board of Sandy Bay CFS from 2017 to 2020 – and Shawendasaawin – a business which De La Ronde and Catcheway were directors of – as defendants in the case.
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Sandy Bay CFS is seeking $10.6 million in damages claiming De La Ronde and the other defendants committed fraud, were negligent and breached contractual, fiduciary and equitable duties.
De La Ronde was let go from his position in September 2021 for "approving multiple purchases without supporting documentation and suspicion of fraudulent activities" the lawsuit reads.
Sandy Bay CFS alleges a forensic audit found De La Ronde started multiple companies "which received inflated and/or fraudulent payments from Sandy Bay CFS during De La Ronde's tenure as Executive Director."
It claims De La Ronde directly or indirectly caused Sandy Bay CFS to pay more than $718,000 to a company started by his wife and her parents, and more than $170,000 to Shawendasaawin.
The lawsuit also claims Radka bought five properties and then leased them back to Sandy Bay CFS, which resulted in more than $6 million being paid to Radka.
It's also alleged De La Ronde entered into lease agreements for vehicles "by charging unconscionable rates that covered the full cost of the vehicle and exceeded market value for a total sum of $345,727.00" as well as purchased snowmobiles worth more than $77,000 that were never used by Sandy Bay CFS.
The lawsuit also claims De La Ronda had Sandy Bay CFS reimburse a credit card for more than $1 million over an eight-year period.
Along with the $10.6 million, Sandy Bay CFS is also requesting special, punitive and aggravated damages to be awarded at trial.
No statements of defence have been filed.
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