An organization that represents the Royal Canadian Legion in Alberta and the Northwest Territories has allegedly been defrauded by a former employee, adding it to the list of volunteer organizations that have recently had funds embezzled.
A former accountant for the Alberta-NWT Command Legion has been charged with stealing funds from the veterans’ support and community service organization over a three-year period.
CTV News has learned 48-year-old Janice Mary Sugai was recently charged with fraud over $5,000 and theft over $5,000 for crimes court documents show took place between January 2019 and January 2022.
Legion records show she was the command accountant in Calgary from 2017 through 2022. Police charged her late last year.
CTV News has reached out to the Legion for comment.
Sugai is scheduled to be in court for a preliminary hearing on May 8.
Sugai also has a trial date in July in Lethbridge, where she’s facing another charge of theft over $5,000.
Court documents allege Sugai stole from Nutrition Limited in Lethbridge between March 31 and May 17, 2023. She also faces a charge of fraud over $5,000 in Lethbridge over the same period.
But it’s not the only veterans’ affairs association to be defrauded of funds recently.
Calgary police charged 49-year-old Cindy Biggs, who allegedly stole approximately $67,000 from the Alberta chapter of the Army, Navy and Air Force Veterans in Canada (ANAVETS).
Officials say Biggs worked as a secretary between 2022 and 2024.
“There’s a lot of good work that could have been done with that money for the veterans in Alberta,” said Deanna Fritt, ANAVETS Dominion secretary treasurer.
“It’s a not-for-profit. You’re already running on slim margins,” she said, adding, “but that money’s lost; it took decades for that command to build up.”
Fritt and her staff became suspicious after they were told funds were sent that never arrived.
“Instead of $70,000 being in the bank, there was $297. So that’s sort of how we caught on,” said Fritt.
“Our unit in Lethbridge, let’s take for an example, needs a new roof. They’re trying to raise money; potentially that money could have been an interest-free loan to help them out.”
The Calgary and District Cricket League is another organization that has fallen victim to fraud, after two men were accused of stealing approximately $200,000.
“The money that comes into the league belongs to the clubs, the players, especially the youth. That is where our biggest investment is every year. The league doesn’t get a lot of grants and funding,” said Shahbaz Saadat, board member with the Calgary and District Cricket League.
The Calgary & District Cricket League (C&DCL) reported several financial discrepancies to police following an internal review in 2017.
“A loss of this kind actually put us back almost six, seven years,” said Saadat.
“Calgary players cannot represent Calgary in the same manner as other cities can.”
Saadat alleges that the president and treasurer at the time wrote cheques to companies owned by themselves or close acquaintances, which they would benefit from.
Preventing fraud
Const. Edu Okoli, the coordinator for the economic crimes unit with the Calgary Police Service, says there are three key reasons why fraud is committed, including motivation or pressure, opportunity and rationalization.
“Individuals feel compelled to commit fraud due to financial hardship,” Okoli said.
“Weak financial control in the organization, such as a lack of accountability and lack of oversight.
“Somebody tries to convince themselves that it’s okay to steal from the organization with the hope that the fraudulent activity will not be noticed.”
For non-profit organizations, Okoli says many of them are victims of opportunity.
“They oftentimes lack accountability and oversight and rely heavily on goodwill and trust,” Okoli said.
He recommends organizations implement strong financial control.
“Requiring at least two authorizing signatures for checks and then, when it comes to expenditures, you know, have a two-person approval process in place,” he said.
“Another thing to do is, never have one person have total control of finances.”
He also advises that the treasurer be rotated out periodically while also running background checks on potential candidates.
