How a financial scandal rocked an Ontario agency for vulnerable children | 24CA News

After years of turmoil — starting from allegations of a poisonous work tradition to monetary mismanagement and even arrests — at a kids’s company in Peel Region, a determine on the centre of the scandal is talking out.

“It’s been a long two years, let’s just say, for family, for myself,” Marino Cader, the previous head of finance for Peel Children’s Aid Society (CAS), informed Global News.

Cader was arrested by police in November 2022, together with one other worker, and charged with an alleged scheme to defraud Peel Children’s Aid Society. The publicly funded group helps kids and households at their most weak in Brampton, Caledon and Mississauga.

Charges towards Cader had been withdrawn on May 3 by Crown prosecutors in a case each the defence and prosecution agreed was marked by police disclosure points.

In withdrawing the fees, the Crown mentioned there “remains a public interest in proceeding” however that there was no “reasonable chance of conviction” in a case that had dragged on near the 18-month restrict established as affordable in Canada.

The former finance director mentioned he’s struggled to “drown out that stigma” that comes with articles about his arrest each time a possible employer searches his title and is now pursuing a civil case towards Peel CAS. The company can also be searching for damages from him in its personal declare.

“My kids have gone through a lot, obviously the stuff that’s come out in the media,” Marino Cader informed Global News in an unique interview. “I was not able to speak out at the advice of legal counsel at the time. As much as I wanted to say stuff, I couldn’t.”

A Global News investigation based mostly on leaked paperwork, interviews with present and former Peel CAS workers, court docket filings and freedom of knowledge requests reveals how an company tasked with serving to weak youth grew to become embroiled in a monetary scandal, legal arrests and questions on an alleged scheme round reward playing cards.

The public story of dysfunction inside Peel Children’s Aid started to develop after the daybreak of the COVID-19 pandemic, spurred by a response to the Black Lives Matter motion within the United States.

Then-CEO Rav Bains had presided over a protracted and at instances controversial interval with the group, which included a 2016 strike, the longest labour motion within the historical past of youngsters’s support in Ontario.

Internal strain on Bains got here to a head in 2020 when a report commissioned by the group’s union in mild of the dying of George Floyd and subsequent conversations round variety discovered problems with anti-Black racism throughout the group.

Eventually, after an investigation ordered by the provincial authorities discovered extra points and a “seriously troubled” office, a gaggle of senior managers went over Bains’ head to complain in regards to the CEO to the board’s then-president.

Four senior leaders — together with Cader — who all reported on to Bains despatched a 17-page letter on the finish of 2021.

The letter, obtained by Global News, raised considerations about how Bains talked to his workers, the monetary advantages they felt he obtained and habits to skirt accountability. It was signed by Cader, together with the administrators of individuals, strategic information intelligence and communications.

The letter alleged Bains had informed senior management that “gossip is good,” and that he additionally mentioned, “I want staff to be afraid.” It mentioned Bains had pushed for admirable although unrealistic objectives. In one case, the letter claimed he mentioned, “Let’s hold a world summit on child welfare.”

Global News put the allegations within the letter to Bains.

“Mr. Bains is not able to speak more specifically about (the letter or subsequent investigation),” Alex Van Kralingen, a lawyer representing Bains, mentioned in an announcement. “What I can say is that he engaged the process robustly and in good faith.”

In their 2021 letter about Bains, the Peel CAS senior managers drew out various alleged examples.

In one case, they alleged Bains had led the development of a gymnasium for Peel CAS and pushed to have an costly badminton court docket constructed, even after senior workers mentioned kids had been prone to wish to play basketball.

“When (the director of finance, property and IT) stated that the primary sport is basketball for the youth, (Bains) stated to the (director) that he had no idea how many individuals play badminton,” the letter mentioned.

It alleged Bains designed the house himself, leading to points with the development that had been quoted at between $60,000 and $80,000 to repair.

According to the letter, Bains had a grasp key for the gymnasium.

“On several occasions, Mr. Bains has used the gym during the lockdown to bring in friends and family to the gymnasium to play badminton,” the administrators wrote.

Bains was positioned on administrative depart with full pay in November 2021 and an investigation into the CEO was introduced.

It cleared him of significant wrongdoing however did discover that he had dedicated two violations, neither of which might have “warranted his suspension or dismissal” from the job, the board mentioned.

One of the violations the investigation discovered was that Bains had been utilizing the badminton court docket in the course of the COVID-19 pandemic, because the letter had alleged.

The different violation referenced by the board was that Bains “used an agency van for personal use” the Peel CAS mentioned in a December 2022 replace despatched to workers.

“As you know, Peel CAS has publicly confirmed that after a comprehensive review, the workplace investigator found that none of the serious allegations against Mr. Bains could be substantiated,” Van Kralingen wrote on behalf of Bains.

“The Peel CAS acknowledged a finding of two non-material violations of policies.”

Bains retired the next yr on the finish of 2022. The board thanked him for his service, hailing his “leadership and commitment to the community over the last 22 years.”

“Mr. Bains’ legacy is one he has a right to be proud of,” a part of the board assertion mentioned.

Bains was paid $248,017.10 in 2022, the yr he was below investigation and on depart, in line with authorities wage data. In 2023, the yr after he retired, he was paid $268,791.74.

“Mr. Bains has dedicated his working life to bettering the lives of children in many communities,  including those in Peel Region,” Van Kralingen wrote.

“He has shown remarkable restraint in the face of the scurrilous and defamatory allegations over the last number of years.”

In November 2022, Peel Regional Police introduced the arrest of two former Peel CAS workers in a press launch.

Cader and a former property upkeep employee, Andre Paul, had been each charged in reference to an alleged buy and reimbursement scheme.

“The investigation suggests that the pair were working together, and it is alleged that they defrauded the Peel C.A.S. of more than a quarter of a million dollars,” police mentioned in a news launch, noting the alleged concern had been flagged after an inner assessment at Peel CAS.

An inner doc ready for the provincial Ministry of Children, Community and Social Services in late 2022 and obtained by Global News via freedom of knowledge legal guidelines mentioned Cader had been the primary individual to lift monetary points.

“In February 2022, the ministry was made aware by Peel CAS of allegations of financial mismanagement by the society’s Finance Director,” the memo reads.

“The ministry met with the society’s Board Chair to understand the allegations and next steps.”

The legal costs towards Paul had been withdrawn in 2023. The Crown dropped the fees towards Cader on May 3.

Both the Crown and defence agreed Peel police had been sluggish to reveal their proof to both of them, with Cader’s lawyer telling the court docket the lead officer within the case solely had eight pages of notes from his investigation.

Those notes, Cader’s lawyer mentioned, weren’t disclosed till effectively into 2024.

“Just think about it, you investigated apparently a quarter-of-a-million-dollar fraud, as they state, and you come out with eight pages of notes — that alone should speak volumes,” Cader informed Global News.

“For me, every time that (a delay) happened, that incurred costs, like, personally. It was one of those things where if I absolutely did not have my family behind me, I wouldn’t make it through.”

Jonathan Shime, who represented Cader in his legal trial, informed Global News it was a “great concern” that police had taken so lengthy to reveal data.

“It resulted in significant days and procedural unfairness to my client, who had to live with the stigma of being charged criminally for almost 18 months. Justice delayed is justice denied.”

A spokesperson for Peel CAS mentioned the group was “disappointed” the case towards Cader didn’t proceed.

“After lengthy delays, the Crown withdrew the charges citing the inability to prosecute this matter within established Supreme Court timelines,” the assertion mentioned.

When they withdrew the fees on May 3, the Crown mentioned there was no affordable likelihood of conviction.

With legal costs withdrawn, the battle over who could also be accountable for the alleged points at Peel CAS and the way folks’s reputations have been impacted will transfer into civil court docket.

Over greater than a yr, statements of declare from Cader and one other from Peel CAS towards each Cader and Paul have been traded and exchanged. In 2023, they had been consolidated into one declare and counterclaim between Peel CAS and its former workers.

Documents initially filed with a Toronto court docket by Cader in 2022 search greater than $700,000 for wrongful dismissal, unhealthy religion, punitive damages and defamation damages.

Along with an announcement of defence denying Cader’s allegations, Peel filed its personal declare towards Cader and Paul in 2022. It sought the “return of funds” allegedly taken at round $1.4 million and a whole lot of hundreds of {dollars} in damages.

Both claims included particulars of various alleged schemes involving the acquisition of reward playing cards.

In his declare, Cader alleged that Bains had “instructed” workers to purchase reward playing cards utilizing leftover cash on the finish of every yr to keep away from returning a surplus to the federal government on the finish of the yr. He alleged at the least $1.3 million in reward playing cards had been “locked away in a vault” on the company.

Cader’s declare doesn’t reference what the reward playing cards had been for however in its personal court docket paperwork, Peel CAS mentioned it retains “an inventory of approximately $300,000 worth of gift cards on hand to distribute to families and children in need.”

Van Kralingen, on behalf of Bains, mentioned Cader’s allegations had been “defamatory” and that he “would be sued” in the event that they had been repeated outdoors of the civil case.

“Any allegations from him should be viewed with deep skepticism,” he wrote.

Bains is referenced in Cader’s case towards Peel CAS however is just not a named social gathering in a difficulty that includes Cader because the plaintiff and Peel CAS because the defendant.

In its declare, Peel CAS offered a special model of occasions.

The court docket paperwork agreed the worth of reward playing cards was round $1.3 million however alleged Cader had purchased them himself with out instruction after which “blamed” Bains when questioned.

“Cader also involved himself in all aspects of procurement, receiving and signing for the gift card invoices (so that he could falsify them), and receiving the box to inventory the product (so he could remove and take the bonus gift cards as outlined below),” the declare alleged.

Both Cader and Peel CAS have mentioned they’re dedicated to seeing the case via.

“I’ve never, for one minute, swayed from the innocent tactic because I know what’s happened at that organization,” Cader mentioned.

“I wouldn’t bring forward these allegations if I didn’t have evidence to support it. And there’s other individuals as well who will be coming forward to speak to this, I’m not the only one…. All the truth will come out.”

Peel Children’s Aid mentioned it “remains committed to pursuing all legal avenues,” together with the continued civil declare.

“Our main objective has always been to ensure that money is returned to the children, youth, and families of Peel Region,” the group mentioned in an announcement.

“Our children deserve nothing less.”