THUNDER BAY - The former co-manager of Kashechewan First Nation accused of defrauding the community breakfast program for more than $1.2 million has been found guilty.
Giuseppe (Joe) Crupi, 51, pleaded guilty to two counts of fraud in a Thunder Bay Court and will be sentenced early next year.
The Royal Canadian Mounted Police arrested Crupi on Sept. 20, 2016 after an investigation found he submitted false funding applications to Indigenous and Northern Affairs Canada on behalf of Kashechewan First Nation.
It was discovered Crupi fraudulently obtained $1.2 million from the National Benefit Reinvestment Program. The program is designed to provide breakfasts for more than 400 school children on Kashechewan First Nation.
Crupi was also accused of misappropriating approximately $656,157 from the First Nation for his own personal use in 2008, 2009, and 2012, as well as failing to report taxable income in excess of $5,000.
He pleaded guilty on Nov. 7, 2017 to two counts of fraud in excess of $5,000. A sentencing hearing has been set for Jan. 12 in Thunder Bay Court.
Nishnawbe Aski Nation Grand Chief Alvin Fiddler said the fraud raises alarms about third-party and co-management in First Nation communities.
“I am disgusted that Kashechewan was robbed by someone entrusted by the federal government to support the daily management of their community. This was an unconscionable act, and we hope that the harshest possible sentence may serve as a deterrent for anyone daring to seek personal gain at the expense of our communities,: Fiddler said in a statement.
"For years we have raised issues about the imposition of co-management and thirdparty management with the federal government. It is about time they take this seriously. We will work with Chief and Council to ensure that all funding is returned by those held responsible, or re-allocated by federal agencies.”
