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Former executive director of brain injury association guilty of fraud

Keri Lynn McGrath (left) is handcuffed by a sheriff's officer after being found guilty of fraud in Newfoundland Supreme Court in St. John's today. — Photo by Tara Bradbury/The Telegram

Keri Lynn McGrath (left) is handcuffed by a sheriff's officer after being found guilty of fraud in Newfoundland Supreme Court in St. John's today. — Photo by Tara Bradbury/The Telegram

Published on November 1, 2012
Published on November 1, 2012
Topics :
Newfoundland and Labrador Brain Injury Association

Keri Lynn McGrath, the former executive director of the Newfoundland and Labrador Brain Injury Association, was found guilty today in Newfoundland Supreme Court in St. John’s of fraud.

McGrath made 51 unauthorized transactions to herself in 2009, swindling $38,356.60 from the organization's bank account.

The transactions were discovered during an audit in March 2010 after which McGrath was arrested.

During the trial, the court heard McGrath made bogus claims on such things as mileage, even though she worked out of the office.

She took thousands in bonuses from government grants, as well as back pay claims —  swindling close to 25 per cent of her total yearly salary — and petty cash claims.

Comments

  • Username
    DON II
    - November 2, 2012 at 10:33:26

    It appears that the Government of Newfoundland and Government of Canada funding agencies such as ACOA and Heritage Canada have provided Not for Profit corporations and organizations with hundreds of millions of tax payer dollars in Grants which have NEVER been audited! It appears that the Government has no clue how the money was really spent or where it really went. It also appears that the Government has allowed the recipients of Grants to withhold 15% of the value of the Grants to cover "administration costs" of the projects and have allowed the Grant recipients to manage the public tendering process for the projects with little or no Government oversight. It appears that if the recipient obtains a $2 million Grant it can take $300,000.00 (Three-hundred thousand dollars) right off the top to cover "administration costs" whether it actually costs that amount to administer the Grant or not! The questions to be answered are as follows: If the administration costs only accrue to $100,000.00, where does the surplus $200,000.00 end up? Is the surplus money injected into the project? Is the surplus money returned to the Government? Can the surplus money be placed in a private bank account or simply stolen? Without proper Government oversight and forensic audits, it is no wonder that this kind of fraud has been happening! We just don't know how much of this kind of fraud has been happening. This case should be a wake up call for the Provincial and Federal Auditor Generals to start doing comprehensive forensic audits of Grants that have been provided by Government to Not for Profit corporations and organizations during the past 10 years. The Auditors may find no problems at all or they may find that some people have used the money to build projects for which the money was not approved, renovated their houses, gone on expensive vacations or bought new vehicles on the tax payers dime!

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  • Username
    Dee
    - November 2, 2012 at 10:11:01

    Sad part about this she most likely will get house arrest then have a chance to pay it back,just like these drunk drivers they are back out driving the next day.But the poor person who steals a coat for her kid for the winter will get 18 months in jail.You should hang your head lady you should be ashamed of yourself.But when you see all these government officials and this clown from income tax last week,getting house arrest for 10 months don,t sound bad for living good for awhile. We need our system over hauled.

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  • Username
    Michelle
    - November 2, 2012 at 10:09:58

    Imagine all the effort it took to accumulate those funds in order to provide programming and support for people with brain injury. She should have to pay twice the amount back.

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  • Username
    Margie
    - November 2, 2012 at 09:24:09

    This organization is for "brain injury" patients, and this woman had no conscience whatsoever stealing from such a worthy cause. There is something wrong, not with her brain, but with her heart. If you have any ounce of shame it's only because you got caught. Too bad it also affects your family.

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  • Username
    More Coverage
    - November 2, 2012 at 09:11:36

    This case of fraud is getting more coverage than a bigger issue involving Lab MP Peneshue; why isn't the Tely's crack investigative team all over that story?

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  • Username
    Happy
    - November 2, 2012 at 08:03:50

    This woman should get the max!!! How can she live with herself having stolen money from a association that is trying to find ways to help those with brain injurys!!!!! I know a woman right now in hospital for the past 5 months only able to blink due to a reckless driver!!!! All I can say is you *****

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  • Username
    carogers
    - November 2, 2012 at 07:26:39

    Smilling or not, she's guilty, and that smile will be gone just like her pink "blankie" her spa days, and all the other spoils of her greed.

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  • Username
    Jay Person
    - November 2, 2012 at 01:06:38

    Um... so if 25% of her salary is 38k, that means the director of a not for profit made more than 120k per year. I'm all for paying fair wage, but what is up with that! It's a license to rob no matter how you look at it!

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  • Username
    John in Whitbourne
    - November 1, 2012 at 22:29:52

    Nobody ever smiles when they are being handcuffed. Never been handcuffed myself but I've met several people who have been.

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  • Username
    sparky
    - November 1, 2012 at 20:03:03

    I guess it`ll turn-out that this Goof had a gambling problem,thats what most thieves say when they get caught right.

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  • Username
    David
    - November 1, 2012 at 17:41:09

    With quality Newfoundlanders like this jewel, the "not-for-profit" sector is pretty profitable for some. Hibernia fridge magnet, anyone?

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  • Username
    Dearie
    - November 1, 2012 at 16:23:53

    My gosh: is it just me or does it look like she is SMILING in that Telegram photo? Makes me feel sick.

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    • Username
      Joanne
      - November 2, 2012 at 06:47:43

      Throw the book at her. So much for a honest hard working employees like some of us. How did she ever think she could get away with this? Common sense does not exist here.

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