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New sentencing date set for Wahnapitae woman guilty in $1M fraud case

Karen Cady was to be sentenced June 22, but it was postponed due to health concerns
Karen and Michael Cady. (Police handout)

A sentencing date of July 16 has now been scheduled for Karen Cady after it was adjourned June 22 due to new health concerns.

Cady pleaded guilty 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.

He requested an adjournment to allow further testing for Cady’s new health matters.

“In my opinion, it has to be looked into, because it’s extremely important, especially given she has diabetes and lupus,” Michel said. 

“I am not comfortable, nor do I believe it’s appropriate according to the rules on professional conduct, for me to proceed with the sentencing when I know there may be a very serious medical issue with my client.”

Ontario Court Justice Michael Carnegie allowed the adjournment as he wants to make sure the court is in the best possible position to allow Cady to “advance her best possible argument without unduly delaying the proceedings.”

Crown counsel Carolyn Hackett of the Serious Fraud Office said she is skeptical, given a complete lack of evidence from Cady on any potential diagnosis.

“While the Crown obviously wants to proceed in this matter, it also has to end fairly,” said Hackett. “I think we’re all in a difficult position, due to the late disclosure from Mrs. Cady. At the very least, there needs to be a doctor’s note, then a report, and right now we have nothing. If we come back and there is still nothing, I’m very concerned about the veracity of information being provided.”

When 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.