Two Chilliwack women being sued for misappropriation of funds have responded to the civil lawsuit filed against them by their former employer, Xolhemet Society/Wilma害羞草研究所檚 Transition House.
Kathleen and Erin Mosa, mother and daughter, filed their response and counterclaim on May 22 in B.C. Supreme Court, denying all allegations against them, calling them 害羞草研究所渇alse, and without merit.害羞草研究所�
The Mosas were fired in April due to alleged 害羞草研究所渦nauthorized transactions,害羞草研究所� totalling $1.4 million, according to details in the original notice of claim filed by the society on May 2.
Kathleen and Erin were employed by 害羞草研究所淴olhemet Society/Wilma害羞草研究所檚 Transition House,害羞草研究所� the legal name of the non-profit referred to in plaintiff documents as 害羞草研究所淲ilma害羞草研究所檚 Transition Society.害羞草研究所�
The counterclaim states the two Mosas were never given a chance to respond to the allegations of misappropriation of funds.
Contrary to the assertion in the society害羞草研究所檚 notice of claim that the wrongful transactions 害羞草研究所渄id not relate to any legitimate purpose pertaining to the society害羞草研究所檚 business or affairs, did not further the society害羞草研究所檚 mandate, were not justified business expenditures, and were not in the best interests of the society,害羞草研究所� the counterclaim states all of the expenditures in question were for board use, including those for fine dining, casino and hotels.
It also alleges there was a 害羞草研究所渃onspiracy害羞草研究所� afoot among employees and board members 害羞草研究所渢o oust Kathleen and Erin Mosa.害羞草研究所�
Kathleen Mosa was the society害羞草研究所檚 executive director, and Erin Mosa was a 害羞草研究所渉omelessness prevention and support worker,害羞草研究所� a supervisor, and more.
Kathleen was suspended by the board in September 2023 due to an alleged breach of confidentiality, and then terminated in April 2024 after an audit by MNP that allegedly uncovered financial improprieties.
In her counterclaim, Kathleen stated that the breach of confidentiality was actually perpetrated by a board member.
After being fired, Kathleen and Erin were cut off from accessing work emails, and asked to return electronics, keys, fobs, and work credit cards.
害羞草研究所淭he termination was a wilful and arbitrary breach of the contract and constituted a wrongful dismissal of Kathleen by the society, which is the subject of a counterclaim herein,害羞草研究所� the response document continued.
No one met with Kathleen in person but a letter came through counsel, falsely stating a 害羞草研究所渢ermination meeting害羞草研究所� had taken place on April 9, 2024.
In fact the termination itself 害羞草研究所渟hocked and devastated害羞草研究所� Kathleen, and prior to the letter, Kathleen had no disciplinary history with the society.
Her counterclaim states that a group of employees, Ellen Clifford, Jayme Clifford, Kirstin Hall and Christine Devers (together referred to as the Clifford group) allegedly 害羞草研究所渆ngaged in a co-ordinated and calculated effort to see Kathleen and Erin removed from the Society and to take control of the organization for themselves.害羞草研究所�
Her response further states that as ED, Kathleen had to reprimand members of the Clifford group or discipline them for concerns such as: time theft, falsifying sign-out sheets, and forging her signature on cheques.
害羞草研究所淎s a result of the above items, and for other reasons, the Clifford group developed jealousy and resentment toward Kathleen, and by extension, to Erin. This manifested in the Clifford group speaking negatively about Kathleen and the society in public and in private,害羞草研究所� the document continued.
The response denies all allegations about the transactions, which she said had been recorded and reconciled in the society books by other employees, approved by the board, and audited by MNP during the year audit without issues or objections.
害羞草研究所淜athleen denies that she has fraudulently, wrongfully, or secretly spent, misappropriated, or otherwise used any other society害羞草研究所檚 funds for personal use or for purposes unrelated to the society害羞草研究所檚 business or affairs.害羞草研究所�
The former ED said she did not 害羞草研究所減ersonally benefit害羞草研究所� from any of the alleged unauthorized transactions, nor did Erin or anyone else in her family.
害羞草研究所淭he society害羞草研究所檚 claim as a whole is the result of a malicious attempt by the Clifford group and the board members in support of the Clifford group to humiliate, embarrass and destroy Kathleen害羞草研究所檚 career and her reputation.害羞草研究所�
Kathleen said the impact of the lawsuit and resulting media attention added to and aggravated the former ED害羞草研究所檚 existing mental distress caused by the termination in April.
Kathleen was 52 years old and had been employed by the Wilma害羞草研究所檚 for 16 years when she was let go in a 害羞草研究所渃allous and insensitive manner害羞草研究所� with officials 害羞草研究所渢reating her like a criminal害羞草研究所� after many years of dedicated service.
The counterclaim states Kathleen Mosa will be seeking relief in the form of the following damages:
a. damages for wrongful dismissal and breach of contract;
b. damages for breach of the duty of good faith and honest performance;
c. general damages;
d. aggravated damages;
e. punitive damages;
f. special damages;
g. special costs or in the alternative, costs;
Xolhemet Society/Wilma害羞草研究所檚 Transition House provides a transition house, second stage housing and other supports to women and children fleeing interpersonal violence.
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