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Jury trial for Wahnapitae man charged in $1M fraud case will happen in 2022

Michael Cady charged with laundering proceeds of crime and possession of property obtained by crime
Karen Cady pleaded guilty in May to her part of a $1-million fraud scheme. Her husband, Michael Cady, has pleaded not guilty to his involvement. (Police handout)

A five-day jury by trial in the fraud case against Michael Cady likely won’t take place until after the New Year.

A judicial pre-trial was held May 26 in the matter, and that will continue July 27, court heard on Tuesday.

Cady’s defence had originally canvassed trial dates in November and December, but it was learned that due to the current judicial resources and scheduling, no more criminal jury trials are being scheduled until 2022, court heard.

The matter will return July 20 to officially set the trial date.

Cady is facing charges of laundering proceeds of crime and possession of property obtained by crime.

An out-of-town judge will be presiding over the trial, as the victim is a retired member of the Greater Sudbury Crown attorney’s office.

Cady’s wife, Karen Cady, pleaded guilty in May to possession of a fraudulent document used in the commission of an indictable offence and fraud over $5,000. Her sentencing was scheduled for June 22, but her lawyer, Denis Michel, informed the court his client had recently visited her doctor and tests showed masses in her body.

Karen Cady has a prior conviction for fraud. She was on probation when she was arrested and charged in 2020.

Her sentencing was adjourned, and a new sentencing date has been set for July 16.

The OPP’s Serious Fraud Office said in November of 2019 they were asked by the Greater Sudbury Police Service to look into allegations from a Sudbury firm of a large-scale embezzlement scheme.

Henniger’s Diesel, a small engine manufacturing, exporting and service business in Greater Sudbury, had discovered a series of financial irregularities in its books, and went to police. Those irregularities totaled around $1 million.

A six-month investigation ensued and on May 21, Michael and Karen Cady were arrested and charged.

When Karen Cady pleaded guilty, the court heard the fraud she committed totalled $1.017 million. It started June 1, 2015, when she was hired as a full-time bookkeeper at Henniger’s Diesel. The fraud continued until June 26, 2019 when she left. 

A total of 109 disguised electronic fund transactions between July 31, 2015, and June 24, 2019, were linked to Karen Cady.