GUILTY PLEA
Hugo Gallegos accepts responsibility for theft from Whitecap Dakota.
A former accountant for the Whitecap Dakota First Nation pleaded guilty to fraud and theft charges in connection with millions of dollars diverted from the Saskatoonarea reserve.
Hugo Edgardo Gallegos entered guilty pleas Friday in Saskatoon Court of Queen’s Bench, marking the beginning of the end of a long, oft-delayed court process. Gallegos was charged in 2013.
Whitecap Chief Darcy Bear told reporters outside court his community had been waiting for the guilty pleas since charges were laid.
“It’s another step forward, the admission of guilt on all six counts,” Bear said. “It was a long time coming. There’s been a lot of delay tactics.”
Gallegos’s court case moved slowly after he set dates for sentencing in provincial court, then decided he wanted to be sentenced in Court of Queen’s Bench, then fired his lawyer, then adjourned his sentencing. Earlier, Gallegos fled the country for his native El Salvador after he was questioned by police, but voluntarily returned to Saskatoon in October 2013 to face the charges.
At his last court appearance in July, the judge told Gallegos he would be expected to enter pleas when he returned to court, which happened on Friday. Gallegos pleaded guilty to two counts each of theft over $5,000 and fraud over $5,000, a charge of laundering the proceeds of crime and a charge of possession of the proceeds of crime.
It’s not clear how much of the $5.8 million allegedly stolen from Whitecap Gallegos is admitting to taking. More details about his crimes and the dollar figures are expected to be heard in court during sentencing arguments, which are scheduled for Sept. 2.
According to allegations contained in a civil court lawsuit filed by Whitecap, Gallegos wrote 1,785 fraudulent cheques totalling $5.8 million while employed as Whitecap’s senior accountant from 2009 to 2013.
The civil suits, filed against Whitecap’s bank, Royal Bank of Canada, and its auditing firm, KPMG, argue they should have caught the fraud. Allegations in the statement of claim have not been proven in court.
Gallegos allegedly wrote cheques to himself, which he deposited in personal accounts and withdrew as cash, and wrote cheques using Whitecap money to pay off his and his mother’s Visa bills, according to the civil suit.
KPMG’s audit for the fiscal year ending March 31, 2013, identified irregularities that ultimately led to the criminal charges.
It’s expected that on Sept. 2 court will hear several victim impact statements about the theft and fraud.