OPSEU, one of the province’s largest unions, is suing three former leaders — including longtime President Warren “Smokey” Thomas — for millions of dollars for allegedly withdrawing $670,000 in cash from a strike fund without explanation and receiving “substantial compensation” on top of that have their salaries and have union-bought vehicles transferred to themselves and their families.
The allegations against Thomas, former first vice president/treasurer Eduardo Almeida, and Maurice Gabay, former administrator of the union’s financial services division, are detailed in a complaint filed Monday morning in Ontario Superior Court and stem from a forensic examination ordered by the union.
The allegations could not be proven in court. No defense was filed.
Current OPSEU President JP Hornick could not be reached for comment.
However, in an email to members, Hornick said: “I know this is disturbing news, but I promise you we will work tirelessly to restore confidence.”
The lawsuit “is just a first step,” Hornick added. “…We will not abandon our commitment to seek justice in this matter and we have the full support of the Board to pursue all legal avenues available…I want to assure you that despite today’s news, our union is strong and our finances are stable.” stay. ”
Thomas, Almeida and Gabay were not immediately available for comment. The three were served with the complaint on Monday, ahead of OPSEU’s email to members.
The Ontario Public Service Employees Union is seeking the “recovery of funds and assets wrongfully transferred from OPSEU” totaling $1.75 million from Thomas, $3 million from Alemeida and $1 million from Gabay and $6 million in damages for “violation.” of fiduciary duty, breach of contract, conspiracy, proselytizing and/or unjust enrichment (less amounts collected),” the complaint reads.
The union is also seeking “aggravated and/or punitive damages totaling $500,000 against Thomas, Almeida and Gabay,” according to the complaint.
The lawsuit says money — ranging from $10,000 to $70,000 from 2014 to 2020 — was withdrawn for the union’s strike fund and allegedly used for “undocumented and illegitimate purposes.”
Thomas, who worked as a Registered Nurse Practitioner, was president of the 180,000-member union for 15 years and retired last year.
Almeida, a correctional officer, was vice president and treasurer from 2011 until his defeat in the OPSEU elections last April, but was a member of the union executive until July.
Gabay, a former Ontario government tax inspector, has worked for OPSEU since 2008 and was fired from his position as administrator of the financial services division last April, the lawsuit says.
“The union’s executive board and its general membership trusted and relied on Thomas and Almeida to protect the union, including ensuring that members’ hard-earned union dues were used in the best interests of the union and its members,” the statement said the complaint says. “The defendants breached their duties to OPSEU. They abused the power and authority that union membership had given them and betrayed the trust that union members had placed in them year after year, election after election.”
The union’s executive ordered a forensic examination in December 2021, but “in or about February 2022, some or all of the defendants, unbeknownst to the executive at the time and in breach of their duties to the union, took steps to try to delay the.” forensic review until after the upcoming elections, scheduled for April 2022, including seeking advice on how to halt or delay the bidding process,” the lawsuit reads.
The forensic investigation uncovered the financial irregularities and is ongoing, the lawsuit states.
The lawsuit states that his severance payment was $61,903 when Thomas retired and that the Almeida union made no such payment. Gabay has received $118,456 in “post-termination payments” from the union — which she is now seeking to recover “in light of wrongdoings disclosed to date,” the lawsuit says.
The lawsuit also alleges that “Throughout their tenures,” Thomas, who earned $142,740, and Almeida, who earned $131,322, “cause the union to pay them significant off-pay and cash awards on which they had no right”. including nearly $399,472 to Thomas and $281,275 to Almeida for “rest days” and $88,875 and $79,681 respectively for “compensation days” for overtime “to which they (as elected officials) were not entitled” in addition to unauthorized “signing bonuses.” .
“These compensation payments were not known to or approved by the board at that time,” the filing reads, adding that “Gabay, who was tasked with overseeing payroll and compensation, is in breach of its employment duties to OPSEU/SEFPO by conspiracy having or colluding with Thomas and Almeida and/or allowing these unauthorized payments to them.”
The lawsuit also states that the three incurred “significant expenses” on the union’s credit cards, which the union paid out without receipts or documentation, with Almeida’s fees alone totaling $1,361,716.
The lawsuit alleges the union paid for home repairs and moving expenses for a non-union member with whom Gabay had a personal relationship in 2020-21.
In addition, the lawsuit alleges: “Since the defendants’ departure, OPSEU/SEFPO has discovered that Thomas, Almeida and/or Gabay arranged for the union to transfer ownership of vehicles formerly registered with OPSEU/SEFPO to themselves , their relatives or their acquaintances, without consideration and without legitimate purpose” over the years.
That includes four vehicles given to Thomas’ wife Valerie and two to his son Danny, the lawsuit says.
The union also transferred ownership of two vehicles to Almeida, and another vehicle was transferred to a non-union member with whom Gabay had a personal relationship, the lawsuit says.
Between 2014 and 2020, numerous withdrawals were also made, ranging from $10,000 to $70,000, from the union’s strike fund — which can only be used for strike pay and labor-related expenses or a board-approved loan to other striking unions, it said in the statement the claim states that adding transactions requires the signatures of the president and first vice president/treasurer.
“These cash withdrawals were neither known nor authorized by the board or board at that time. No supporting documentation was presented to support the withdrawals or to explain their purpose,” the complaint reads.
“OPSEU/SEFPO is not aware of any legitimate strike or lockout purpose for withdrawing such substantial amounts of cash, and in fact there was none. In some of the years that the withdrawals took place, there wasn’t even a strike or lockout,” the claim reads.
The lawsuit also includes allegations of unauthorized payouts to the three, as well as others, “allegedly to resolve complaints by these employees for improper, improper and excessive amounts.” The payments included a $500,000 lump sum payment from OPSEU/SEFPO to Thomas and a complaint filed by Thomas alleging “discrimination against and harassment of certain members of the OPSEU/SEFPO Board of Directors and damages for harm to his feelings, dignity and self-esteem”. handing over an OPSEU/SEFPO vehicle to Thomas, the lawsuit states.
The complaint also states “an agreement between OPSEU/SEFPO and Almeida in March 2022, allegedly to resolve an unspecified claim by Almeida of ‘defamation, intentional interference with economic relations, intentional infliction of mental suffering and civil conspiracy’ for a lump sum payment.” of $500,000 and delivery of an OPSEU/SEFPO vehicle to Almeida.”
“The conduct of the defendants was outrageous, self-indulgent and deserving of sanction by this court,” the complaint reads. “OPSEU/SEFPO are entitled to increased and/or punitive damages for their intentional and unlawful conduct.”
