Missing Millbrook funds investigation

Current investigation connected with fraud allegations dating to 2016

MILLBROOK, NS - An RCMP investigation is underway into the alleged misappropriation of nearly $5 million from the Millbrook First Nation Fisheries fund dating to 2019.

“I can confirm that a complaint has been received by the RCMP and the matter is still under investigation,” provincial public information officer Cpl. Chris Marshall said, in response to an inquiry from Saltwire Network.

The inquiry stems from a letter to the band from Chief Bob Gloade, dated Feb. 23, 2021, that was obtained by Saltwire Network.

“In September (2020), (Millbrook band) council received a preliminary and interim presentation from Deloitte – the firm contracted to conduct a forensic audit – after the discovery of alleged misappropriation of band monies in December 2019,” the letter states.

FORENSIC AUDIT

“The findings of the forensic audit to date detail the misappropriation of Millbrook Fisheries funds and unauthorized spending on a band issued credit card, in excess of $4.8 million. As Chief and Council we are all coming to understand how this happened and are taking steps to make sure this does not happen again.”

Gloade told Saltwire Network he could not comment on the issue because he did not want to affect the outcome of the case.

“Though I acknowledge this is worrisome to our community,” he said, in the community letter, “it is important to recognize that upon discovery, this matter was immediately acted upon and referred for appropriate forensic auditing and to the RCMP, whose investigation I am assured is thorough and ongoing.”

The letter also stated that the report from Deloitte included “specific accounting recommendations for council’s review, consideration and implementation.”

It adds that the report from Deloitte is not being shared publicly at this time, in order “to ensure proper controls are put in place while additional audit and criminal investigations continue”.

2019 INVESTIGATION

An RCMP investigation into alleged fraud in Millbrook was also launched in December 2019 after a fraud complaint was lodged earlier that month.

Gloade said on the band’s website at the time that staff had noticed "some accounting irregularities with regard to specific cheques."

That case involved missing funds from the band dating to 2016. It was also stated then that the band's top financial advisor, who was not named, had been fired and Gloade said "a business relationship" with another individual had ended "over a lack of confidence moving forward."

Gloade also said at the time he did not yet know how much money was involved.

When asked on Thursday (April 1) of the status of that case, Marshall said it is still ongoing and is part of the current investigation.

“These types of investigations are very complex and can take time to complete,” he said.