Gambling addiction spurred fraud: court documents

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This article was published 22/12/2010 (5768 days ago), so information in it may no longer be current.

WINNIPEG – A Winnipeg hospital employee charged with defrauding the Misericordia Health Centre of nearly $1.5 million over a 10-year period allegedly used some of the stolen cash to fuel a serious gambling addiction.

Michelle Cadger is accused of spending nearly $400,000 on slot machines since 2008, according to court documents. The 46-year-old former finance clerk is also accused of using the money to take nine friends on a trip to Hawaii and purchase a new car, which has now been impounded.

Cadger was arrested last month following a police investigation which began in April 2010. She has been charged with fraud and theft and remains free on bail. None of the allegations against Cadger have been proven and she is presumed innocent.

The case came to light when internal concerns prompted the Misericordia to hire an external auditing firm that confirmed a massive amount of money missing from a hospital bank machine. Cadger has since been fired from the job she had worked at since 1980.

The provincial government has filed documents in Court of Queen’s Bench in an attempt to have Cadger’s assets and bank accounts frozen while the case remains before the courts. They also want $25,000 cash she has paid to a local law firm put in trust, alleging the money is proceeds of crime. The government has also filed a civil lawsuit seeking unspecified financial damages.

Justice Albert Clearwater made a temporary order last week, with further legal arguments to come in the future. Cadger has not filed a statement of defence.

According to affidavits, Cadger worked as an accounts receivable clerk in the hospital’s finance department and had nearly exclusive access to large amounts of money used to fill the ATM. She allegedly used her position to repeatedly remove money from the cash float used to fill the bank machine.

A new finance director at the hospital noticed irregularities earlier this year, triggering the internal review and subsequent investigation. The ATM was operated by the Misericordia until the fraud was discovered, at which time the hospital transferred operation to an outside company.

Cadger was making nearly $40,000 a year in salary at the time of her dismissal.

Winnipeg police have outlined their investigation in court documents, which has included speaking with officials at Club Regent Casino and the airport. They have also been reviewing banking records in an attempt to find where the rest of the missing money has gone.

No trial dates have been set for Cadger.

www.mikeoncrime.com