Fishing firm Baffin Fisheries Coalition (BFC) has filed a lawsuit against its former CEO Garth Reid for allegedly defrauding the company of CAD 1.4 million (USD 1 million).
The lawsuit, filed in the Supreme Court of Newfoundland and Labrador, alleges Reid invoiced building expenses on his private land to BFC and its subsidiary Niqitaq Fisheries (NFL) — funneling goods and services through a construction company in Quebec, CBC News reported.
"The invoices for these services included the independent contractors account for labour, air expense associated with having labourers travel to Winterton from Montreal … hotel and meal costs associated with the labourers' stay was paid by NFL and the total expenditure is in excess of CAD 750,000 (USD 584,500)," the lawsuit alleges.
According to Court documents, the executive claimed the work was for a project in Pond Inlet, Nunavut.
None of the allegations have been proven in court, and Reid and his wife have not filed a statement of defence.
The lawsuit seeks CAD 1.4 million in damages and for the property in question to be handed over to BFC.
Meanwhile, Baffin Fisheries Coalition vice president Methuselah Kunuk said the organization's board noticed financial irregularities as early as July.
At a meeting in September, BFC's board passed a resolution to suspend Reid with pay and launch a forensic audit.
The forensic audit is still ongoing, but at an October meeting, the board passed a new resolution to fire Reid and launch the lawsuit. It was filed four days later.
The board also resolved to implement a permanent, independent audit committee.
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