New trial dates set in case against former Peel CAS employee charged with defrauding the organization of more than $250K

Details of a dysfunctional agency, meant to protect the Region’s most vulnerable, will likely soon materialize as new trial dates for a former Peel Children’s Aid Society (CAS) employee charged with allegedly swindling the organization of more than a quarter million dollars are set. 

The new trial dates—set for April—are the latest in an ongoing legal saga against two former Peel CAS employees charged in a “purchase and reimbursement scheme”. An internal investigation conducted by Peel CAS in early 2022 found Marino Cader, previously responsible for the taxpayer-funded organization’s accounts, allegedly abused his former position as director of finance. Following a criminal investigation conducted by Peel Police at the request of the organization, Andre Paul, a former maintenance coordinator with Peel CAS, was charged alongside Cader. 

After several courtroom delays spanning over a year since the charges were first laid in November 2022, the case against Cader, previously scheduled to head to trial in January, was delayed once again on January 24 following a series of issues in obtaining disclosure evidence that resulted in new dates being set. His case will now head to trial on April 15 to 18 and again on April 22, Jonathan Shime, the lawyer representing Cader, told the Crown on Thursday. 

The charges against Paul, the co-accused in the case, were withdrawn in early December at the request of the Crown Attorney after it was determined that “The scope of the involvement by Mr. Paul was alleged to be significantly less than Mr. Cader, who held a leadership role and was a superior to Mr. Paul,” according to a spokesperson for the Crown’s Office. 

“Critically, Mr. Paul has provided restitution in full to the Children’s Aid Society for the portion of the fraud he was alleged to be involved in. In light of that restitution and his relative role, the Crown is prepared to withdraw the charge against him only as there is no public interest in continuing the prosecution.”

Peel CAS has been the centre of controversy and strife for over two years after a provincial probe made several damning revelations about the organization.

(Alexis Wright/The Pointer) 

The arrests came on the heels of nearly two years of controversy and friction inside Peel CAS after several alarming allegations surfaced in a report commissioned by the Province that found the organization's workplace environment was “seriously troubled,” Controversy was further stirred after the third-party investigation revealed financial mismanagement of taxpayer funds and disturbing examples of a deeply-rooted, dysfunctional culture within the organization. 

After an internal investigation prompted by staff complaints of discriminatory behaviour and other abuse by senior management prompted the provincial review of the organization in 2021, Cader was placed on leave in February 2022 and was later fired in May of the same year. The probe revealed evidence of financial mismanagement and in November 2022 Cader and Paul were arrested and charged following the investigation by Peel Police.

The investigation resulted in allegations that the pair worked together to defraud the CAS of more than $250,000 as part of a “purchase and reimbursement scheme” — one of the most common forms of criminal activity against businesses where an employee typically claims expenses that were never in fact incurred, were for personal use, or have been inflated beyond what was actually spent. As a result, Cader has been charged with seven counts of fraud over $5,000 and five counts of uttering a false document. Paul was charged with three counts of uttering a false document, but the charges against Paul have since been dropped as of December 4. The allegations against Cader have not been proven in court.  

Cader filed a lawsuit against Peel CAS in response to the fraud charges against him that alleged he was wrongfully dismissed in May 2022 as “a scapegoat” and pointed the finger at the embattled former CEO Rav Bains, who discreetly left the organization at the end of 2022, after being placed on administrative leave in 2021. 

The former director of finance alleged his firing was punishment for being a whistleblower after coming forward with allegations of financial abuse by Bains. The lawsuit revealed alarming allegations of wrongdoing, financial mismanagement and potential criminal activity inside the organization. Cader’s claims centered around Bains’ misconduct, alleging he “experienced bullying, intimidation and pressure to engage in unethical conduct” at the hands of the formerly scandal-plagued CEO, who was previously exposed for his questionable use and misrepresentation of public funds when he travelled to the U.S. to attend business seminars at the expense of the organization. 

Though brought to light in nearly three years of investigations by The Pointer and the review conducted by the Province, a statement of defence filed by Peel CAS in response to Cader’s claim has called into question the integrity of the organization’s leadership, who stand at the head of the organization meant to act as a critical safety net for some of Peel’s more vulnerable. 

In a statement of claim filed by the former director of finance, Marino Cader has alleged he was a “scapegoat” after coming forward with allegations against former CEO Rav Bains (above), who discreetly left the organization in December 2022.

(Peel CAS)

Cader alleged that it was Bains’ financial mismanagement and “waste of taxpayer money'' that resulted in the organization purchasing “at least $1,300,000 in gift cards.” He claims the agency “has made a scapegoat” of him for bringing the financial corruption at the hands of Bains “to light” as well as “failure to appease the former CEO and failure to cooperate with the acting CEOs and other Agency’s employees, in covering up fraud, embezzlement and financial improprieties at the Agency.” He alleged the former CEO instructed him not to confirm or record the financial requests in writing to avoid a paper trail and that Bains secretly purchased the gift cards so unused taxpayer funds would not have to be returned to the provincial Ministry of Children, Community and Social Services, which governs Children’s Aid Societies. The allegations in Cader’s statement of claim have not been proven in court. 

As a result of his termination, Cader is seeking $325,000 in damages for wrongful dismissal, including loss of benefits during the 18-month reasonable notice period and loss of pension benefit contributions. He is also seeking $150,000 in bad faith and aggravated damages, $50,000 for breach of the Ontario Human Rights Code, $200,000 for punitive damages and $400,000 in defamation damages from Peel CAS. 

Disputing Cader’s claims, Peel CAS has filed a statement of defence that notes the allegations made in Cader’s lawsuit against Bains are “irrelevant,” to the allegations against Cader. Instead, the organization claims it was Cader who “engaged in wrongful acts,” including engaging “in serious financial misconduct and conflict of interest while working for Peel CAS and breached the trust that was put in him to protect resources and funds earmarked for vulnerable children and families.” 

It adds: “Peel CAS not only had just cause to terminate his employment, but had no other choice but to do so once the extent of his misconduct was discovered.” 

Peel CAS denies Cader’s claims that he was wrongfully dismissed, while also making several allegations of financial wrongdoing on his behalf — one of the most damning being that the former employee misappropriated approximately $1.38 million of the organization's funds through a variety of methods. This, the organization claims, was done through submitting fictitious receipts, falsifying online invoices, requesting reimbursements for purchases he returned or cancelled and improperly distributing gift cards. 

Cader’s lawyer has previously declined to comment on the statement of defence and the allegations made in it, previously stating in an email to The Pointer that “as the matter is before the courts it would not be appropriate.”

In response to Cader’s claims that he was “a scapegoat,” the organization asserted Peel CAS “conducted itself with the utmost good faith” throughout the investigation, administrative leave and termination of Cader’s employment. It claims “Cader’s termination had nothing to do with finding a ‘scapegoat’ or with his having hired counsel, and everything to do with Cader’s wrongful, fraudulent activities.”  

Cader will make his next courtroom appearance on April 15 when the case will go to trial.

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Twitter: @mcpaigepeacock

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