Another reminder that Directors & Officers need vigilance including - sadly - of each other.

Exposure to theft risks may be universal, but financial controls & arms-length oversight may be pretty shaky in the volunteer universe. It's a recurrent risk whether condo governance or religion or service agencies or parents associations or whatsoever the differences may appear . . . . !

Embezzlers don't need masks nor a stopwatch. Nor be fleet of foot. They might only get detected after years of masking their trail by their own duplicitous accounting. Maybe only after going on a rare vacation, or being unexpectedly hospitalized . . .

Just released by CBC is the result of investigations into youth hockey embezzlements / other frauds in that sector.

Stealing from kids ! How were these frauds detected ? How long did they go on ? What's the final punishment - if ever ? - for fraudster & victim organization alike ?

Nov 19 2020 CBC : “Canadian youth sports groups are losing millions of dollars to fraud and theft” by Jamie Strashin. Subtitle : “ Largest single theft involved $2.4M taken from Ontario Minor Hockey Association” https://www.cbc.ca/sports/fraud-canadian-youth-sports-robbed-8-million-past-decade-1.5796422

xcrpt : " . . .( comment from a Canadian academic ) In many cases, a league's money is handled by a single volunteer with what Misener calls a "learned advantage," somebody who knows how the organization's finances work and how to manipulate them. "

CBC has posted a second installment, this time with a Readers Comment section. ( Will those go viral ? )

And more details about aftermaths, one arguably including "circling the wagons".

Not unusually, one CBC Commenter even criticized condominium governance ( “Drop in the bucket compared to condo board members stuffing their pockets.”; several other comments are below ). Of course unlike parental discretion to take their kids elsewhere, victimized condo / strata owners are locked into ownership & enforceable contributions. More transparency & adequate financial controls ? Or get ( partial ? relief from fidelity ) insurance ? Or sell . . .


# 2 Nov 20 /20 CBC “ Sports groups defrauded by their own members face uphill battle in rebuilding community trust” sub-title : “ $8M stolen in past decade by employees, treasurers and others at sports leagues and associations across Canada” by Jamie Strashin https://www.cbc.ca/sports/fraud-canadian-youth-sports-transparency-rebuilding-trust-1.5806345

non-copyrightable one hopes :

- " . . . . I belonged to a fraternal organization, once the biggest in B.C. of its brand, where eight trustees and the treasurer simply ignored the reports while the secretary siphoned almost a quarter of a million dollars out of the accounts. That group has lost their terrific building, including a large bar/lounge and popular gym, and dwindled to a few dozen members from over 400 - even though their were procedures in place for oversight.

Simple sloth allowed years of embezzlement to occur, until one member, not particularly financially literate, doggedly researched what turned out to be unpaid bills, including to the national/international organization, came to light ( sic ) and the crime was revealed. By that time the money was unrecoverable . . . "

- " . . . . The one case I have knowledge about, involved 1 individual who had complete control of all financial accounts and statements. Say bye bye to $ 100K over an 8 year period. Finally caught because an outside organization who was also a victim reported this person.. . "

CBC Toronto & other media have reported a York Regional Police announcement concerning a sentence imposed after Covid-era delays onto a minor hockey association's ex-Treasurer.

Not yet at canlii.org, the 48 month sentence decision as cited in the police announcement ( & partial restitution order ) may include house arrest to date. CBC cites a mere 2 years of imprisonment upcoming for the $ 2.4 M.

In context the sentence at least looks consistent with CBC's ( above ) summary of some sports embezzlements & subsequent light penalties. Not Florida or Texas penal systems either.

Even if the kids' loss is partially re-imbursed TO OMHA by fidelity insurance ( ? ), wonder who ultimately will pay in the form of higher insurance premiums

Police Oct 7/21 : https://www.yrp.ca/en/Modules/News/index.aspx?feedId=eec058e4-5b49-437f-89cd-d222d7465de7&newsId=672c545a-5bf8-477c-b227-4bf52f8131f2

CBC Oct 8/21 https://www.cbc.ca/news/canada/toronto/omha-fraud-1.6203093

Fuller background earlier : ( No longer counter-checked, the accused middle-aged 16 year Treasurer had used a long-dormant account to start kiting association cashflow until no longer concealable & pre-emptively fessed up. ) see Feb 18/21 the Georgina Advocate “Sentencing for Georgina woman in $2.365-million OMHA theft delayed” https://www.stcatharinesstandard.ca/local-georgina/news/crime/2021/02/18/sentencing-for-georgina- woman-in-2-365-million-omha-theft-delayed-until-july.html

CBC Ottawa reports that an Eastern Ontario teacher will appear in court in mid September 2022.

The unproven charges - to which she is fullest entitled to a presumption of innocence - contain some details. CBC Ottawa discloses that the accused teacher appeared on the Province’s 2021 Sunshine earners list showing alleged salary earnings of $ 103, 636.

From one organization's mail-out to members of one alleged victim group :

"I would suggest that one of the first lessons we are learning is that many, if not all, of our organizations are vulnerable to acts such as these. "

CBC Ottawa continues to look at alleged & unproven embezzlements by a respected community member allegedly over an extended time against three local sports organizations.

That's : in a venue where such alleged events by respected community members have high local profiles and affect many families known personally.

And it's allegedly happening where there's arguably far greater risks & more devastating consequences than an urban highrise ( where folks might move more often. And many may not readily know neighbours on sight. )

Facing early stages of the criminal justice process, local disclosures to parents & sponsors etc look very painful.

# 2 CBC Ottawa Aug 25 2022 “High school teacher allegedly took close to $ 60 K . from Ottawa Valley hockey association. subtitle - - - - allegedly stole $12K and $15K from 2 other sports groups” https://www.cbc.ca/news/canada/ottawa/high-school-teacher-allegedly-took-close-to-60k-from-ottawa- valley-hockey-association-1.6561357

Once more : xcrpted Disclosure by an alleged victim group informed members :

"I would suggest that one of the first lessons we are learning is that many, if not all, of our organizations are vulnerable to acts such as these. "