ESTEVAN - An Estevan woman will have to repay tens of thousands of dollars to her former employer after pleading guilty to two charges Monday in Estevan Court of King's Bench.
Karleen Ali Dumaine pleaded guilty to forgery and fraud worth more than $5,000. Another charge of theft over $5,000 was stayed.
She received a conditional sentence order (CSO) of two years less a day, and will also have to pay $66,500 in restitution to Border Insulators, whom she worked for from January 2017 until September 2021. Dumaine, who has no prior criminal record, paid back the first $8,000 after the guilty plea.
A five-day trial for Dumaine was set to start Monday in Court of King's Bench and was to last five days, but the plea deal was reached shortly before the trial began. Dumaine, her defence attorney Kathryn Gilliss, prosecutor Jaco Erasmas and Judge C.L. Norback appeared by video for the hearing.
After Dumaine pleaded guilty, Erasmas told the court that from Jan. 1, 2017, to Sept. 7, 2021, she defrauded Border Insulators by transferring unauthorized money into her account. He noted that when Dumaine was employed by Border Insulators, she was responsible for managing the day-to-day books, payroll, payments and other aspects of the company.
She was to be paid according to an agreed-upon hourly rate, including overtime, but according to Erasmas, unbeknown to her employer, she had put herself on salary and on a higher pay scale.
"Ms. Dumaine made out several unauthorized payments in excess of $5,000 in total to herself that included bonuses, loans, vacation pay and other expenses," said Erasmas.
Also, on or about Aug. 11, 2021, Erasmas said Dumaine used the signature of Nyla Saxon on a document with the Border Insulators letterhead without the knowledge or permission of Saxon, and Erasmas said Dumaine did it with the intention that the letter be acted upon.
Erasmas added the amount of fraud reported to police was higher than $66,500, but the $66,500 figure was the agreed-upon amount for restitution. He said there was a lot of back and forth with the defence, but he views this as a true joint submission for sentencing.
Border Insulators manager Ryan Saxon and co-founder Caroline Saxon read victim impact statements to the court. They chronicled how Dumaine's actions impacted the company; Ryan Saxon said it put a "serious financial strain" on the business.
"She watched us struggle daily, trying to cut costs wherever we could, and would help us with that, knowing all the while it was her that was contributing to the company's financial strain and stress," Ryan Saxon said.
Due to the price of oil and the COVID-19 pandemic, everyone's wages were cut, including employees, managers and owners, Ryan said, but she did not.
"We considered her a closed and we got to know her, and never would have even considered her to do this to us, as she saw the stress and struggle that we were under and decided to keep on taking. She not only jeopardized myself and my family's livelihood, but also the lives of 20-plus employees that we have working for us."
Caroline Saxon recapped the company's history and growth, along with some of the setbacks it has endured over the years. She noted her husband Robert was looking forward to selling the company to Ryan, but Dumaine's "criminal activities" brought those plans to a halt.
"Our company has been financially crippled," she said.
Both Ryan and Caroline Saxon called for a jail sentence of some sort and restitution because of the financial strain.
Speaking on behalf of Dumaine, Gilliss noted Dumaine has more than 20 years of experience in financial management, handling payroll, books and bill payments for a number of different companies. She has also spent the majority of her life working a minimum of two jobs at once to provide for her family.
Gilliss also chronicled Dumaine's work experience at Border Insulators, including the departure of a long-time employee from the company, which led to Dumaine taking on extra work; Gilliss said it became difficult for Dumaine to complete her required work in an eight-hour day.
Gilliss said there are a number of factors that she believes contributed significantly to the matter before the court. She noted that during the COVID-19 pandemic in 2020, the government wage subsidy program was introduced, and she claimed Dumaine was instructed to maximize the use of that program.
"In doing so, she thought it best to transfer a few employees to salary work, based on their average income and their overtime. This leads ultimately to the significant discrepancy that arose and puts us … in the court at this time."
Dumaine "deeply regrets" the decision she made, Gilliss said, and how she handled the matters.
The CSO has a number of conditions that Dumaine has to follow, and she cannot seek, obtain or continue any employment or be a volunteer in any capacity that involves having authority over the real property, money or valuable security of another person for the next three years. Gilliss noted Dumaine is now employed outside the financial management industry and has no intention of returning to that type of work.
