Woman faces jail for coast guard fraud

Illicit credit card use cut into funds for auxiliary safety training, equipment

“It was never my intention to do this,” Debbie Noseworthy told a provincial court judge between sobs Friday. “Sometimes we get into a situation where we have to protect those that we love.”

In Noseworthy’s case, she will go to jail for the $327,780 that was unlawfully spent with her Canadian Coast Guard Auxiliary credit card, leading to cancelled training programs and purchases of life-saving equipment due to a lack of funds.

Noseworthy, 57, pleaded guilty to charges of fraud over $5,000 and breach of trust of a public officer, and both her lawyer and the Crown suggested a one-year jail term for her.

“It’s unfortunate all the way around, but there is really, in the Crown’s submission, no other option than to send her to jail,” prosecutor Jennifer Colford told the court.

Noseworthy was business manager of the Newfoundland and Labrador chapter of the non-profit organization, which works with the Candian Coast Guard to enhance search and rescue resources in this province.

In 2017, the president of the organization received an anonymous letter in the mail at his home address, saying Noseworthy’s son had been using her Coast Guard Auxiliary credit card for personal use.

Members of the organization’s executive held a meeting with Noseworthy and showed her the letter, and she admitted to having used the card for personal reasons, reckoning she had spent about $20,000 a year for the previous five years.

Noseworthy was asked to resign and the Coast Guard Auxiliary launched a forensic audit.

“Ms. Noseworthy appeared to repeatedly engage in various types of what the auditor termed questionable transactions, including a high volume of cash advances as well as expenses that appeared to be personal in nature,” Colford read in court from a statement of facts. “Ms. Noseworthy also prepared fraudulent documentation which misrepresented the nature of the cash advances and apparent personal expenses.”

Noseworthy had presented the documentation to her superiors in the organization, who had signed off on them. They told police they had not seen verification of the expenses and had not questioned them. A number of the executive members told investigators they had completely trusted Noseworthy, who had been a respected and well-liked member of the auxiliary for more than 20 years.

When police reviewed the usage history of Noseworthy’s Coast Guard Auxiliary credit card and her personal bank account, they found the cash advances on the card — which was not a usual practice for the organization — did not match up with any deposits to her account.

In a victim impact statement presented to the court, members of the auxiliary said they felt betrayed and were still working to overcome the loss.

In addition to a year in jail, the Crown and defence lawyers have suggested Judge Colin Flynn order Noseworthy to pay back the Coast Guard Auxiliary for the fraudulently obtained money.