Sandy Bay Child and Family Services is suing its former executive director, accusing him of unjustly enriching himself with money meant to help vulnerable kids and families.
The statement of claim was filed Tuesday in the Court of King’s Bench by lawyers Jamie Alyce Jurczak and Mark Alward of firm Taylor McCaffrey LLP on behalf of the child welfare agency.
It names former director Richard De La Ronde; a corporation he ran, Radka Inc.; Timothy Catcheway, a director on agency’s board from 2017 and 2020; and a corporation Catcheway ran, Shawendasaawin Inc., as defendants.
The CFS agency’s claim accuses De La Ronde and his associates of fraud, negligent misrepresentation, breach of fiduciary duty and breach of contract.
The agency alleges it has uncovered losses and damages tied to the defendants of approximately $10.6 million to date. It’s seeking repayment of that sum, plus special, punitive and aggravated damages to be determined at trial.
None of the defendants have responded to the lawsuit with statements of defence.
The lawsuit says the agency fired De La Ronde because approved multiple purchases without supporting documents and was suspected of fraud.
The CFS agency was placed under administration by the Southern First Nations Network of Care in 2021, which ordered the forensic audit that allegedly uncovered the fraud. Sandy Bay CFS exited administration in 2023 and has a new executive director and board of directors.
The claim alleges De La Ronde directly or indirectly caused the agency to pay over $718,000 to himself, his wife or companies he had an interest in.
It also claims he incorporated Radka to purchase properties that he then leased back to the agency for more than $6 million.
He’s also accused of entering vehicle lease agreements exceeding market values by over $345,000 and buying snowmobiles for $77,000 that the agency never used.
The claim alleges he transferred a property owned by the agency to Radka for $1, before selling it for profit and keeping the cash.
De La Ronde, the lawsuit alleges, was fraudulently reimbursed by the agency for credit card charges over $1 million.
Sandy Bay CFS said in a news release Wednesday it is severing leases with De La Ronde and his companies. It has relocated from the properties he owned that it was operating from.
The CFS agency provides child welfare and other services to members of Sandy Bay Ojibway First Nation, which is about 177 kilometres northwest of Winnipeg on the west shore of Lake Manitoba, on and off reserve.
erik.pindera@freepress.mb.ca
Erik Pindera
Reporter
Erik Pindera is a reporter for the Free Press, mostly focusing on crime and justice. The born-and-bred Winnipegger attended Red River College Polytechnic, wrote for the community newspaper in Kenora, Ont. and reported on television and radio in Winnipeg before joining the Free Press in 2020. Read more about Erik.
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