Former IDLP employees charged with fraud

Two former senior employees of the Innu Development Limited Partnership (IDLP) have been charged with fraud, police said Monday.

The charge comes after a lengthy investigation that began in 2014 after an independent financial audit raised red flags. The 900-page spending review, which was obtained by The Canadian Press, showed that Paul Rich and Edgar Branton racked up “excessive” salaries on top of questionable claims for restaurant tabs, cigarettes, lotto tickets and massages.

Former provincial auditor general John Noseworthy, who was hired to specifically assess salary, bonuses, incentives and expenses for Rich, the former chief executive officer, and Branton, the former chief financial officer, sent his report to the RCMP to assess possible criminal activity.

It was alleged that Rich and Branton abused their positions of trust in taking IDLP funds for personal use.

According to the report, for the fiscal years 2008 to 2012, Rich received almost $1.5 million in salary, bonuses and incentives. In 2011 he received $339,519 — up 106 per cent from the year before — and his pay then jumped again to $638,847 in 2012.

It also says Branton, over the same five years, was paid $717,357 in total compensation including almost $186,000 in 2011 — up 73 per cent from the year before, and $251,060 in 2012. Both men were fired. The RCMP’s Federal Operations Section charged the two jointly with a count of fraud over $5,000. The men are expected to face the charge in court Oct. 6 in provincial court in Happy Valley-Goose Bay.

According to the report, for the fiscal years 2008 to 2012, Rich received almost $1.5 million in salary, bonuses and incentives.