Breach of trust
Tracy Ann Smith awaits sentencing after defrauding autism charity
A P.E.I. woman who defrauded an organization that works with people with autism of more than $26,000 says she was addicted to alcohol and gambling.
Tracy Ann Smith, 40, appeared before Chief Justice Tracey Clements in P.E.I. Supreme Court on Friday where the defence and Crown made a joint recommendation of 90 days in jail.
Smith pleaded guilty in December to defrauding the Stars for Life Foundation while she was the organization’s executive director.
Stars for Life provides support for adults with autism.
The court heard that Smith started working for the foundation in 2012 and was promoted to executive director in January 2017.
Smith was responsible for the organization’s accounting and the fraud was discovered when someone else did the payroll instead of Smith.
That person found issues with the foundation’s Visa card and an audit turned up Smith’s fraud.
The court heard Smith forged 22 cheques and used the Visa card for cash advances and personal purchases.
Before she was caught, Smith repaid $3,500 through payroll deductions.
In total, Stars for Life was out $26,943.34.
Crown attorney Lisa Goulden told the court Smith said she was struggling with alcohol and gambling addictions, which is what she spent most of the money on.
Goulden said the fraud had a huge impact on the organization and it was a “substantial” breach of trust.
“Miss Smith was considered not just an employee but a friend,” she said. The court heard a victim impact statement prepared for the case. The statement said Stars for Life has two major fundraisers every year and the fraud wiped out most of the donations brought in from one of them.
Goulden said the main victim was the foundation, but the fraud also impacted its clients and took an emotional toll on the staff.
Smith lost her job almost immediately after the fraud was discovered and a pre-sentence report showed she was very remorseful, Goulden said.
“She’s lost a community.” Defence lawyer Thane MacEachern said Smith loved her job and it wasn’t a case of a disgruntled employee.
“She loves what the Stars for Life Foundation stands for,” MacEachern said.
There was a high degree of premeditation in the fraud, MacEachern said, adding that Smith didn’t take extra efforts to hide what she did.
The court heard Smith works three jobs and plans to use the money from a property she is selling to pay some of the money back to Stars for Life.
MacEachern said Smith’s remorse is genuine and her actions were motivated by addiction issues. “This is not motivated by greed,” he said.
During his submissions, MacEachern read an apology letter Smith wrote in which she said she wasn’t sure how to say how sorry she was.
Smith’s letter said she never meant to hurt anyone, but knows she has.
Clements adjourned the matter until March 20 when she will give her decision on the sentence.