Yukon government, former employee settle over fraudulent cheques

The Yukon government and a former government employee have settled a $25,000 lawsuit over her allegedly fraudulent use of cheques.

The Yukon government and a former government employee have settled a $25,000 lawsuit over her allegedly fraudulent use of cheques.

Both parties asked a Yukon Supreme Court judge for an order declaring that Charlene Armstrong owes the government more than $25,000 plus interest. That order was issued on Jan. 6.

The government sued Armstrong in December 2016 for issuing $44,000 in allegedly fraudulent cheques to a local skating club, but was only seeking to have $25,000 repaid.

The lawsuit alleges Armstrong used her position working for the Department of Tourism and Culture to issue two fraudulent cheques.

According to the government, she issued a first cheque of nearly $24,600 in May 2013 to the Arctic Edge Skating Club. Armstrong used to be the club’s treasurer.

She issued the skating club a second cheque of more than $19,400 in August that same year.

That’s when a clerical error led to “the discovery of the fraud,” the government said.

In the court document, the government says it conducted its own investigation during which Armstrong admitted to forging the necessary paperwork to issue the cheques.

“Further, she admitted that, after the cheque was issued, she had destroyed file copies of the documents relating to the payment,” the statement of claim reads.

Armstrong was fired on Sept. 6, 2013, the government said.

In December 2015, she settled with the government, the lawsuit says, agreeing to repay the amount of the first cheque, plus three per cent interest, which would be around $26,000.

She had to pay by September 2016 or the government would sue her. The government says she didn’t pay the money back.

None of the allegations have been proven in court.

Contact Pierre Chauvin at pierre.chauvin@yukon-news.com

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