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Former councillor stole nearly $500,000 from businesses Grace Loreen used her authority to funnel funds into her own pocket
Miranda Scotland
Northern News Services
Published Monday, June 17, 2013
INUVIK
A former Inuvik town councillor was convicted last week of stealing nearly $500,000 from three Sahtu businesses over a four-year period.
Grace Elizabeth Loreen, 50, carried out the scheme while working for E. Gruben's Transport Ltd. where she was in charge of arranging travel and handling the company's day-to-day banking in Inuvik.
At the time, her services were also being used by Deline Construction Ltd., as well as Storm Communications Ltd., and she was given access to those companies' accounts.
Loreen handled the credit card for another Sahtu company titled MVIOS, which was partly owned by Deline Construction Ltd., and had authorization to move funds between the two companies.
From 2008 to 2011, Loreen used her authority to shuffle funds from the companies' accounts to her own personal account and from one company account to another. She used the MVIOS credit card to make personal purchases and cash advances.
She also moved funds from Eddie Gruben's personal account, the founder of E. Gruben Transport Ltd., which the company managed due to his failing health. Loreen repaid those monies by transferring company funds back into the account.
But in April 2011, her actions were discovered when a MVIOS cheque bounced. An audit was conducted and when irregularities were uncovered, the RCMP were notified.
By that point, Loreen had stolen $401,645 from Deline Construction Ltd., $83,599 from MVIOS and $4,000 from Storm Communications. Evidence found later showed she had gambled away $467,863.
Loreen pleaded guilty to three counts of theft over $5,000 and one count of theft under $5,000. A fifth charge of fraud was dropped.
Loreen's actions nearly rendered Deline Construction Ltd. bankrupt and had a significant impact on the company's owner, Danny Gaudet, according to Crown prosecutor Mathew Johnson in territorial court in Yellowknife on June 10.
"I'd go so far as to say it's ruined his life," said Johnson, adding Gaudet estimates the total cost of Loreen's actions to be about $1.3 million.
Johnson requested Loreen be handed a jail sentence of two years less a day followed by a period of probation.
This was a sophisticated operation and there is evidence it was planned, he said. Loreen used multiple bank accounts and knew to target the ones that were least monitored by senior management.
Also, although Loreen seems remorseful, she has made no effort to repay the funds she stole nor has she sought treatment for a gambling addiction, he said.
Defence lawyer Thomas Boyd argued for a lesser sentence. He said Loreen is a residential school survivor and has struggled with health issues.
Five years ago, she had an operation to get a pacemaker and she was faced with a cancer scare. She has since received treatment and the cancer has gone into remission.
Judge Christine Gagnon chose to reserve her decision on the case until June 28.
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