Opaskwayak Cree Nation education service defrauded of $460K

Four former employees of a Manitoba First Nation have been charged after a three-year fraud investigation found more than $460,000 was stolen.

RCMP say the money was "siphoned" off fromOpaskwayak Education Services"through the use of a wide variety of financial trickery and deception" between March 1, 2017, and March 2018.

The OES isa non-profit corporation responsible for the delivery of educational programs from pre-kindergarten through Grade 12 to members of Opaskwayak Cree Nation, about 520 kilometres northwest of Winnipeg.

According to OCN'sonekanew mena onuschekewuk (chief and council),the discrepancies were first noticed inMarch 2018. The prompted an internal investigation which, in turn, triggered a forensic audit in August 2018 by a chartered accountant.

The fraud totalled$464,284.45, OCN leadership said in a Thursday news release.

The matter was then referred to the police, who announced Thursday that charges againstthe former employees had been laid. Three people have been arrested and an arrest warrant has been issued for the fourth, who RCMP say is now in another province.

"This was a very long and complex investigation," RCMP Cpl. Sheldon Martens said.

"These four accused were in control of the financial department of OES, and we believe they used their positions of authority within the organization to purposefully commit fraud."

The accused are three women, age37, 50and 51, and a 59-year-old man. All are from Opaskwayak Cree Nation.

Theyconcealed their actions by disguising the funds as loans, improper employment income and other various payments not authorized by OES, according to Onekanew (Chief)Christian Sinclair.

"It's disheartening to think that individuals, including some of our own members, thought it was all right to take money that was meant to further the education of OCN membership, especially our youth," Sinclair said in the Thursday news release.

"Those individuals are in the hands of the law now and will be dealt with accordingly. Going forward our focus as leadership of OCN is to continue improving and strengthening the finances and governance structure as an entire organization. A solid structure will help us put our people first."

The onekanew mena onuschekewuk said it has recently approved a restructuring of OCN, with plans for centralizing and standardizing finance, human resources, communications and information technology of its eight branches: education, health, child and family, infrastructure, lands and natural resources, operations, business enterprises and government services.

"These findings, as difficult as it has been, have exposed a silver lining. It has become an opportunity and catalyst for strengthening our Cree traditions, customs, and beliefs," Sinclair said.

"The leadership of today believe that accountability and transparency to its members is one of the fundamental values of ensuring that OCN continues toward true progress and independence."

RCMP did not have information about whether any of the money has been recovered.