Winnipeg Free Press - ONLINE EDITION
Ex-federal employee accused of diverting funds to family
A FORMER federal employee is accused of using government money to employ her relatives instead of giving it to young aboriginal artists.
On Tuesday, the RCMP Winnipeg Commercial Crimes Section said an arrest warrant has been issued for a former Canadian Heritage cultural development officer after the woman allegedly misused thousands of dollars in federal grants in 2005.
Christine Lenze told the federal department the money was going to an outside group that would develop young aboriginal artists by mentoring them and giving them grants, said Sgt. Sheldon Peddle.
Instead, Lenze allegedly used the money for an organization she’d covertly set up called the Red Earth Young Artist Collective (REYAC), Peddle said.
Police say Lenze used the funding not only to pay out to her family members but to bring over artists from countries like Italy, which was not within the scope of the grant.
"Canadian Heritage and all of her peers and supervisors believe that they’re funding a company that’s incorporated, lawfully incorporated. They believe they’re funding a company that’s at arms-length from Christine Lenze," said Peddle.
"They don’t believe they’re funding her or her family."
He said Canadian Heritage became concerned about REYAC in late 2005 after getting complaints and started an internal investigation and audit, and then contacted police.
The RCMP began its investigation in 2007.
Peddle said it’s unknown how much of the nearly $230,000 in federal grants was misused, although Lenze didn’t receive all the funding before her superiors became suspicious.
Lenze, a contract employee, did not work for the organization past 2006.
"It’s troubling because the public expects that the tax money they’re providing the government is going to be spent in an ethical, honest and proper way," said Peddle.
Canadian Heritage did not comment on Lenze’s charges Tuesday, except to say "that as soon as the Department of Canadian Heritage became aware of alleged irregularities, it (referred) this case to the RCMP."
Jacques St. Goddard, a Winnipeg artist who received financial support from REYAC about five or six years ago to cover flight and accommodation costs for a trip to Toronto, said the charges are "disheartening."
Police said they’ve issued a warrant for Lenze, who’s charged with fraud over $5,000 and two counts of breach of trust by a public officer. The charges are related to allegations against Lenze from December 2004 to January 2006.
Lenze, who hails from Hamilton is described as aboriginal in appearance. She’s about five-footeight, with black hair and brown eyes.
Police believe she may be in the United States.
Anyone with information is asked to call the RCMP Commercial Crime Section at 983-2000, or Manitoba Crime Stoppers at 1-800-222-8477 (TIPS).
gabrielle.giroday@freepress.mb.ca
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