TORONTO, December 10, 2014
To our valued clients,
I’m writing to inform you of an important matter concerning CMRRA. We are communicating this information to you as part of our commitment to openness and transparency with our clients.
CMRRA recently learned that its former Vice President of Finance and Administration and former Executive Assistant stole from the collective. For a number of years until October 2013, these former employees took advantage of and abused their position of power and trust to steal approximately $1 million.
Upon becoming aware of the stolen funds, CMRRA took immediate action. Through an insurance claim, we have recovered the full amount identified to have been stolen. Further, CMRRA has launched legal action against these individuals to recover, in addition to the stolen funds, all severance paid to them, neither of whom have any legal basis for collecting it. These former employees were terminated as a result of a recent restructuring of the organization. Had CMRRA known about the fraud at the time of these employees’ departure, we would have terminated these employees, with cause, and no severance.
The theft was perpetrated primarily by undermining CMRRA’s electronic banking facility. CMRRA has worked with its financial institution to put new, stronger measures and processes in place, including more robust authorization controls, to ensure this type of activity cannot happen again.
In addition to the new, stronger measures now in place, CMRRA is also developing and implementing a new industry-leading financial system. We have and will continue to work with independent, third-party auditors to ensure our new system has the necessary internal controls to prevent future theft or fraud.
CMRRA has zero tolerance for theft or fraud. These actions betray our values as a collective and undermine the efforts of our employees. As legal action is currently ongoing, the extent to which we can comment further is limited.
Your ongoing confidence in our company is our number one priority. CMRRA’s Board of Directors fully supports CMRRA’s new management team and we have worked together to bolster complete confidence in the organization. To that end, should you have any questions, comments or concerns, please do not hesitate to reach out to me directly at email@example.com.
Thank you for your understanding and support during this time,
Caroline Rioux, President Gary Furniss, Chair, Board of Directors