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Wahnapitae couple facing $1M embezzlement charges expected to plead guilty April 14

Michael and Karen Cady used the money to purchase big-ticket items like a home, backhoe and 3 vehicles, police allege
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A Wahnapitae couple, Michael and Karen Cady, charged in a large-scale embezzlement scheme to the tune of $1 million is expected to plead guilty April 14.

A Wahnapitae couple charged in a large-scale embezzlement scheme to the tune of $1 million is expected to plead guilty April 14.

Karen Cady is charged with fraud over $5,000, laundering proceeds of crime, possession of property obtained by crime, failing to comply with probation order and forgery.

Michael Cady is charged with laundering proceeds of crime and possession of property obtained by crime. His matter will return to court on March 31 to be spoken to before he is expected to plead guilty.

Ontario’s Serious Fraud Office charged Karen Cady last spring following a six-month investigation.

The OPP’s Serious Fraud Office reported May 29 that 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.

The OPP said following the couple’s arrest that GSPS referred the investigation to them due to the complex nature of the investigation, and the financial crime services’ expertise in investigating these types of cases.

Police have not released the name of the business, describing it as a “small engine manufacturing, exporting and service business,” where Karen Cady worked as the business’s bookkeeper for four years. Over the course of that time, the OPP said she “embezzled more than $1 million … through electronic fund transfers.”

Police said the couple used the money to purchase a home, a travel trailer, a boat, personal watercraft, a backhoe and three vehicles. Police said $2,400 in Canadian currency was also seized. All of these assets were seized when three search warrants and restraint orders were executed by the OPP.

Court heard last month the case had been resolved, but more time was needed to accommodate a lengthy sentencing hearing, among other reasons. 

An out-of-town assistant Crown attorney is prosecuting the case, as the owner of the company allegedly defrauded has ties to Sudbury’s legal community, court heard.


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Arron Pickard

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