FORMER IWK EXECS CHARGED WITH FRAUD, BREACH OF TRUST

Two former children’s hospital executives have been charged with fraud and breach of trust in relation to an expense scandal at Halifax’s IWK Health Centre.

Former CEO Tracy Kitch was arrested at her Oakville, Ont., home Tuesday, while former CFO Stephen D’Arcy of Toronto turned himself in to police.

Kitch is charged with fraud over $5,000 and breach of trust, while D’Arcy faces charges of breach of trust, unauthorized use of computer and mischief to data.

Kitch stepped down in August 2017 after an independent Grant Thornton audit said she owed tens of thousands of dollars for “potentially personal” expenses charged to her corporate credit card.

D’Arcy stepped down on Sept. 25, 2017.

Police said Tuesday they launched their investigation following a “complaint of financial mismanagement” from the IWK board of directors on Sept. 20, 2017.

“Investigators with the Financial Crime Unit of the Integrated Criminal Investigation Division made two arrests today ... with assistance from Halton Regional Police Service and Toronto Police Service,” Halifax police said in a release.

Kitch, 57, and D’Arcy, 55, are scheduled to appear in Halifax provincial court on Dec. 20.

“We are pleased this matter is moving forward. As it is now before the courts we will not be commenting further,” Karen Hutt, chair of the hospital’s board, said in a statement.

Kitch joined the IWK in August 2014 and was earning an annual salary of $296,289 at the time of her departure. Before joining the Halifax hospital, Kitch was executive vice-president of patient care and chief nursing executive at Mount Sinai Hospital in Toronto.