‘Bogus’ lawsuit is ‘riddled with errors,’ says former union president accused of receiving unauthorized cash payouts
A lawsuit that alleges three former union leaders withdrew $670,000 from a strike fund, received unauthorized cash payouts and had union vehicles transferred to family members is riddled with errors, falsehoods and untrue allegations," say the lawyers for Warren Smokey" Thomas.
A statement released Tuesday calls the allegations bogus," and says Mr. Thomas rejects the claim against him and intends to defend his good name. For nearly 15 years, Mr. Thomas served as the president of (the Ontario Public Service Employees Union) where he faithfully and proudly dedicated his life to representing the interests of its members."
It goes on to say that as president, he was hailed as a tough but fair leader with a reputation for being honest, caring and someone who always put the interests of his members and his union first. That will never change."
On Monday, OPSEU filed a statement of claim in Ontario's Superior Court against Thomas, former first vice-president/treasurer Eduardo Almeida and Maurice Gabay, former administrator of the union's financial services division, seeking $6 million-plus and alleging financial irregularities were uncovered in a forensic audit.
The allegations have not been proven in court. No statements of defence have been filed. The Star has been unable to reach Almeida and Gabay.
Thomas's lawyers - Frank Portman and Jeffrey Kroeker of Toronto's Massey LLP - said their client is reviewing all legal options available to him and will shortly respond. Until Mr. Thomas files a defence, he will make no further comment about the bogus claims against him or the motives and politics behind it."
OPSEU is seeking the recovery of funds and assets unlawfully transferred from OPSEU" in the amount of $1.75 million from Thomas, $3 million from Almeida and $1 million from Gabay, as well as damages of $6 million for breach of fiduciary duty, breach of contract, conspiracy, conversion and/or unjust enrichment (less any amounts recovered)," the statement of claim says.
As well, the union is asking for aggravated and/or punitive damages in the amount of $500,000 against each of Thomas, Almeida and Gabay," the statement says.
The statement of claim also says that between 2014 and 2020, amounts ranging from $10,000 to $70,000 were withdrawn from the union strike fund without explanation and used for undocumented and illegitimate purposes."
Current OPSEU president JP Hornick said in an email to members on Monday that I know that this is troubling news to take in, but I give you my commitment that we will work tirelessly to rebuild trust."
The statement of claim is just a first step," said Hornick. We will not waver in our commitment to seeking justice in this matter, and we have the full support of the board to pursue all available legal avenues ... I want to assure you that despite today's news our union remains strong and our finances stable."
Thomas, who worked as a registered practical nurse, was president of the 180,000-member union for 15 years and retired in 2022.
Almeida, a correctional officer, served as vice-president and treasurer starting in 2011 until his defeat in union elections last April.
Gabay, a former tax auditor for the Ontario government, began working for OPSEU in 2008 and was terminated as administrator of the financial services division last April, the statement of claim says.
The statement of claims alleges that throughout their tenures," Thomas, who earned $142,740 in 2021, and Almeida, who earned $131,322, caused the union to pay to them significant non-salary compensation and cash payouts to which they were not entitled," including almost $399,472 to Thomas and $281,275 to Almeida for lieu days," and $88,875 and $79,681 respectively for compensating days" for overtime for which they (as elected officers) were not entitled," on top of unauthorized signing bonuses."
These compensation payments were not known to or authorized by the executive board at the time," the statement of claim says, adding that Gabay, who was charged with oversight of payroll and compensation, breached his employment duties to OPSEU/SEFPO by conspiring or colluding with Thomas and Almeida, and/or permitting these unauthorized payments to be made to them."
Kristin Rushowy is a Toronto-based reporter covering Ontario politics for the Star. Follow her on Twitter: @krushowy