HomeMy WebLinkAbout2003-3741.Augustine.06-11-28 Decision
Crown Employees
Grievance Settlement
Board
Suite 600
180 Dundas Sl. West
Toronto, Ontario M5G 1Z8
Tel. (416) 326-1388
Fax (416) 326-1396
Commission de
reglement des griefs
des employes de la
Couronne
Bureau 600
180, rue Dundas Ouest
Toronto (Ontario) M5G 1Z8
Tel. : (416) 326-1388
Telec. : (416) 326-1396
IN THE MATTER OF AN ARBITRATION
Under
Nj
~
Ontario
GSB# 2003-3741
UNION# 02-48
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
BETWEEN
BEFORE
FOR THE UNION
FOR THE EMPLOYER
HEARING
Before
THE GRIEVANCE SETTLEMENT BOARD
Canadian Union of Public Employees - Local 1750
(Augustine)
- and -
The Crown in Right of Ontario
(Workplace Safety and Insurance Board)
Daniel Harris
Ian Thompson
Canadian Union of Public Employees
William Gale
Grosman, Grosman & Gale LLP
Barristers and Solicitors
December 14, 2004; May 9 &10, June 13 & 15,
November 7 & 30, December 8,2005;
January 11 & 20, February 16,2006.
Union
Employer
Vice-Chair
2
Decision
The Proceedings
In this matter the union grieves that the discharge of Jeffrey Augustine was unjust. The
Workplace Safety and Insurance Board (hereafter, W.S.I.B. or "the employer") says it dismissed
him from his employment as a Claims Adjudicator because he conspired with a previous
claimant and another employee to defraud the W.S.I.B. of approximately $55,000.00. The nub
of the employer's case is that a Payment Specialist, Robert Falby, authorized the reopening of a
claim for benefits that had been allowed in 1999 in favour of Otis Wilson, an employee of Bell
Canada. The grievor is alleged to have authorized the further payments to Mr. Wilson. The
three of them are alleged to have split the money that had been fraudulently disbursed.
In large measure the employer's case rests upon a tape-recorded statement given by Mr. Falby to
the W.S.I.B. investigator Mr. Gladish.
The Facts and Evidence
A convenient overview of the concerns raised in this matter is to be found in a memorandum
dated June 14,2002 which is as follows:
Background
This claim was established for an accident of April 26, 1999 when this worker who was
employed by Bell Canada slipped and fell. The worker per the Form 7 and Form 6 on file was
residing at 1 Davisbrook Blvd., Scarborough, Ontario. Entitlement was accepted for left wrist
injury. Loss of earnings benefits were granted (details below). The worker's benefits were
terminated when he was declared recovered from the injury on July 5, 1999. He was verbally
advised by the Adjudicator Mr. Jim Butler on July 6, 1999 of the termination of benefits. This
was confirmed in a decision letter dated July 21, 1999. The worker objected to the decision and
was issued access and an objection form on September 2, 1999. No other correspondence has
been received or telephone calls since that time per file record. The claim has been inactive since
that time.
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Issue
A daily report is produced by Treasury which highlights cheques issued in excess of$lO,OOO.
This report is reviewed by Ms. Todd, Manager Schedule 2 Industry Sector on behalf of the
Sector. She noted a cheque issued on June 12,2002 payable to the worker in the amount of
$11338.15 for the period January 1,2001 to May 21, 2001. (copy attached) Since the claim has
been inactive since 1999 she referred the matter to Wanda Crichton, the Manager responsible for
Bell Canada claims in the Simcoe Schedule 2 Industry Sector. She reviewed the claim and noted
no explanation on file for the payment. Using system searches no other claims were located for
this worker. She also noted the worker's address had been changed without any documentation
on file.
It was also noted that the WBS payment history screen showed this payment had been authorized
and processed by User ID's in the Chemical Sector, as had several others since April 2001. The
Chemical Sector Business Assistant and Manager were asked to investigate further via email.
Ms. Bianchi, Business Assistant MEE, approached Mr. Rovazzi regarding the email.Mr.
Rovazzi reviewed the claim and noted also there had been no activity in the file since 1999 and
the payment history screen showed 7 authorizations by Chemical Adjudicators since April 2001.
At this point, Mr. Rovazzi approached Mr. Nigel Hunte, Manager Chemical Sector to discuss the
findings, as it appeared unusual that an adjudicator from the Chemical Sector would be involved
in a Schedule 2 claim without any documentation.
Mr. Hunte suggested that a meeting be held with Mr. Clark Campbell Director. During the
meeting, Mr. Hunte stated that he knew the worker as he played basketball with him. Also, other
W.S.I.B. staff were acquainted with the worker as well as playing basketball with him. Mr.
Hunte named Robert Falby, Payment Specialist and Jeff Augustine, Claims Adjudicator for the
Chemical Sector.
It was agreed that further investigation was required by Sector Managers Ms. Todd, Ms. Crichton
and Mr. Rovazzi and they approached Mrs. Belzun, manager WBS.
Ms. Belzun reviewed the claim for all disbursements made and found that 7 cheques were issued
to the worker between April 2, 2001 and June 12,2002. She confirmed there has been no activity
in the imaging folder of this claim file since 1999. The benefits that were allowed in this claim
ceased as of July 5, 1999 and were all full advance reimbursement to the employer Bell Canada.
A cheque was issued on April 2, 2001 payable to the worker in the amount of $8893 .14. A stop
payment was placed on this cheque. On April 30, 2001 the address was changed to 25 Henry
Lane terrace #548, Toronto, Ontario and the $8893.14 cheque was reissued on May 1,2001.
Subsequent to this, 5 additional cheques were issued to the worker. The total of all cheques
issued and cashed since April 2001 is $54,464.08. These cheques were for the benefit period of
July 5, 1999 to May 21,2001.
Based upon a review of the authorizations on the payment history screens it appears that there are
3 User Id's involved in creating the entitlement authorizations and/or disbursements through the
LDET or AP A Y screens in WBS since April 2001.
These User ID' s are:
UQP 056 Robert Falby - Payment Specialist
UAD 058 Michelle Reid - Claims Adjudicator
UAJ 403 Wing Ong - Claims Adjudicator
4
The address of the worker was updated on WBS by UKU 500 Antonella Mammone,
Administrative Services on April 30, 2001.
There is no documentation on the file record ofthis address change.
The employer's first witness was Nigel Hunte. He explained that claims for benefits are
processed by teams of adjudicators which are organized by industry. He was the manager of the
Chemical Sector, which had two teams in Toronto and one team in London. Claims are assigned
to a Claims Adjudicator in the sector in which the injured worker was employed. They assess
the claim and decide whether to allow it. Once a determination is made to allow a claim, it is
referred to a Payment Specialist who calculates the level of benefits and authorizes the initial
benefit payment. Thereafter, any extensions of the benefits are authorized by a Claims
Adjudicator. At the time these payments were made to Otis Wilson, each Claims Adjudicator had
their own computer work station that required their user ID and password to log in so that they
could perform their work. The computers logged out automatically after a period of five minutes
of inactivity. Once a Claims Adjudicator was logged in they had access to any injured worker's
file except for W.S.I.B. employee claims and those that were specifically security coded. Otis
Wilson's claim was not security coded. He was an employee of Bell Canada, which is a
Schedule 2 employer, meaning it was self-insured and administered by the Schedule 2 Sector. It
was not meant to be processed by the Chemical Sector.
The Claims Adjudicators in the Chemical Sector in Toronto worked at workstations arranged in
three pods of four or six stations. Their cubicles were separated by dividers. It was possible to
see over the dividers; however the centre dividers were slightly higher than the side and front
dividers.
5
Mr. Hunte said that employees were not always careful about keeping their computer passwords
confidential. Some wrote it on their desk blotters or kept it near their computers. He would
discourage such practices and also discouraged employees from leaving their computers logged
on if they left their desks for any reason. Mr. Hunte testified that he was made aware of the
payments to Otis Wilson by the manager of the Schedule 2 Sector. Claims Adjudicators were
authorized to issue cheques up to $15,000. However, any cheque over $10,000 generated a
payment notice to the manager of the associated sector. In this case the Schedule 2 Sector
received the payment notice and saw that a Claims Adjudicator in the Chemical Sector, not the
Schedule 2 Sector, had authorized a payment to Otis Wilson for $11,338.15. That manager went
to one of Mr. Hunte's colleagues, who brought the matter to Mr. Hunte's attention. He
immediately recognized the recipient, Otis Wilson, as an acquaintance with whom he played
basketball and cards during some lunch hours. In cross-examination he said that he, Robert
Falby and others had played basketball together for a number of years. Otis Wilson began
playing at Robert Falby's invitation. The grievor was not part of the basketball games. Mr.
Hunte also occasionally played cards at lunchtime with Falby, Wilson, the grievor and others.
He described Wilson as a friend. Mr. Hunte described Mr. Falby as a close personal friend.
They attended each other's weddings. He and the grievor have also socialized in the past. Mr.
Wilson would occasionally socialize with Falby and Hunte but seemingly not with the grievor.
In his evidence, Mr. Hunte also reviewed the process for issuing cheques over $10,000 and for
arranging to have a cheque picked up rather than mailed. It was his view that any cheque greater
than $10,000 would require a manager to authorize its release by way of signing off on the
cheque authorization sheet. It was that requirement that brought these transactions to
management's attention.
6
Wanda Crichton also testified. She was a manager in the Schedule 2 Industrial Sector. She
normally oversaw claims arising from Bell Canada. Schedule 2 employers are self-insured and
are responsible for the cost of their claims. The Board administers those claims. Bell Canada
was one of the Schedule 2 employers that continued to pay the wages of employees who were off
work due to a workplace injury. Accordingly, the W.S.I.B. would not normally issue cheques
directly to such claimants as had occurred with the payments to Otis Wilson. Ms. Crichton also
testified that cheques to claimants that were greater than $10,000 are reported to the associated
sector for review and approval. The Schedule 2 managers took turns reviewing that report. On
June 14,2002, a fellow manager, Maury Todd, brought to Ms. Crichton's attention the cheque
for $11,338.15 to Otis Wilson. She reviewed Mr. Wilson's 1999 claim, saw that he had returned
to work and that there had been no activity beyond July 1999. There was no rationale or
documentation on file as to why he was obtaining direct payments in June 2002. She and Maury
Todd took their concerns to Rose Bianchi, the Business Assistant in the Chemical and Plastic
Sector, it being the sector that authorized the payment. Their own Business Manager was not
available. Bob Rovezzi, the manager of the Municipal, Electric/Chemical Sector and Sue Belzen
the manager of the Computer "Worker Benefit System" were also included in the discussion.
Ms. Belzun looked at the System entries and also concluded that there was no documented
rationale for the payments. They referred their concerns to their supervisors by way of the June
14,2002 memo set out above and Ms. Crichton suggested that it might be appropriate to involve
the Special Investigations Branch of the W.S.I.B.
Under cross-examination, Ms. Crichton elaborated upon the daily cheque report. She said that
individual Claims Adjudicators, once fully trained, may authorize individual payments up to
$15,000. Beyond that amount, payments must be approved by a manager who holds a
corresponding authority. Her authority extended from $15,000 to $50,000. The daily cheque
7
report issued by Treasury was instituted in the 1990's when the Claims Adjudicators' authority
had been up to $10,000. Accordingly, the report still showed cheques in the amount of$10,000
to $15,000, even though those amounts were within the Claims Adjudicators' limits at the time
these cheques were issued. The manager's responsibility was to review the report and sign an
authorization for cheques greater than $15,000, which was faxed to Treasury so that the cheques
could be released. Treasury would not wait for such authorization in the case of cheques of
$15,000 or less.
Jim Butler also testified. He reviewed a report entitled "Workers' Benefit System Payment
Authorization History" pertaining to Otis Wilson. He identified his activity on the file by
referencing his desk number and User J.D. as displayed on the report. His last activity was to
"final" the claim ("to final" being the Board's term stopping payments on a file) on July 6, 1999.
He said that he had advised Mr. Wilson, by letter of July 2, 1999 that his claim was being finaled
as of July 5, 1999 because he was fit to return to work. Mr. Wilson disagreed and indicated by
letter dated August 6, 1999, that he would appeal that decision. Accordingly, Mr. Butler sent the
claim to the Access Department to have the file material provided to Mr. Wilson. That ended his
involvement with the claim.
Sue Belzun also testified. She managed the "Workers' Benefit System", the computer system
used to track payments to claimants. She also supervised eight Payment Specialists. Each
payment specialist served a specific complement of the 110-120 Claims Adjudicators. The role
of the Payment Specialist is essentially to review the adjudicator's initial request to authorize
payment to a claimant to ensure that payment is supported by appropriate documentation. That
request, a "Payment Authorization", is made using the "Workers' Benefit System".
8
Ms. Belzun said that she was approached by Wanda Crichton and Bob Rovazzi and asked to
review Otis Wilson's payment history. She looked at every payment, reviewed the file and
concluded that the seven disbursements after the file was finaled in 1999 were not supported by
the necessary documentation. The first payment was authorized on March 30,2001 by a
Payment Specialist, Robert Falby, and provided for 16 weeks of benefits to be paid directly to
the worker. There was nothing in the file to support either the 16 weeks of benefits or the direct
payment. That payment was sent to an address in Scarborough, Ontario. A stop payment was
put on that cheque, the address was changed and a replacement cheque issued April 2, 2001. The
subsequent payments were authorized by a Claims Adjudicator and each payment was marked as
final, with the subsequent payment noted as an extension, all of which was within the normal
purview of a Claims Adjudicator. Ms. Belzun's review was assisted by an Information
Technology employee, Kiev Tran. They determined that the user ID of the payment specialist
was that of Robert Falby and the user ID's of the Claims Adjudicators who had extended the
payments were those of Wing Ong and Michelle Reid.
George Gladish also testified for the employer. He was a senior investigator with the W. S.I.B.' s
Special Investigation Branch. He was responsible for the investigation of the concerns raised by
Wanda Crichton and the other managers who had become concerned about the payments to Otis
Wilson. In his evidence, he reviewed the details of his investigation, including his investigation
ofW.S.I.B. employees who were implicated because their user ID's were involved with activity
on Otis Wilson's claim since it had been finaled in 1999. Those employees included Robert
Falby, Michelle Reid, Wing Ong and Antonella Mammone. Ms. Mammone was quickly
eliminated, as she had merely changed the address as a matter of her clerical function. He also
investigated Nigel Hunte and the grievor because Otis Wilson knew them through the lunch-hour
basketball games. Mr. Gladish made attempts to trace the movements of these six people on the
9
relevant dates, reviewed telephone logs detailing calls to and from their telephone extensions and
made other such enquires. As his investigation continued, the number of employees in whom he
was interested waxed and waned. He contacted the bank branches where the benefit cheques
were certified and where they were cashed. He obtained Mr. Wilson's bank records and
concluded that all six cheques could be traced to his account and on each occasion large
withdrawals had been made which were roughly consistent with a division of the proceeds into
thirds. He also obtained Mr. Augustine's bank records.
Mr. Gladish's investigation reached a crescendo on July 16, 2002. On that day he and his
superior, Adrian Moores, interviewed Mr. Wilson at Bell Canada. Mr. Wilson did not allow
them to tape the interview. Mr. Wilson admitted receiving the money, denied knowing he was
not entitled to it and did not implicate any W.S.I.B. employees. After being questioned, he was
told that he would likely be charged with fraud. That afternoon they interviewed Michelle Reid,
Robert Falby and Jeff Augustine. Michelle Reid denied any knowledge of the payments. Mr.
Falby confessed to his involvement and implicated Mr. Augustine and Mr. Wilson. Mr.
Augustine declined to give a statement. The admission ofMr. Falby's statement into evidence
was opposed by the Union. Its admissibility was dealt with in previous GSB Decisions dated
May 9, and June 15,2005 and is further considered below.
Michelle Reid also testified. She denied having any involvement with payments to Otis Wilson.
She also said that she kept her computer password on a piece of paper stuck to the underside of
her keyboard. She often took breaks with the grievor. When she left her desk she did not shut
her computer down. She believed that the terminal stayed active, under her username, for five
minutes before timing out. Her workstation was accessible to any number of people.
10
Robert Falby also testified. He acknowledged that Otis Wilson had been a good friend for many
years and also said that he and Mr. Augustine were friends who socialized outside of the
workplace. He knew in 1999 that Mr. Wilson was in receipt ofW.S.I.B. benefits but said he did
not know the details. Mr. Falby acknowledged that the W.S.I.B.'s documents confirmed that it
was his user ill that authorized the reopening ofMr. Wilson's claim by paying him a sixteen-
week extension and finalizing the claim. However, he described it as a routine matter that he
would not, and did not, remember. He also disavowed any recollection of making the statement
to Mr. Gladish, parts of which were tape-recorded. He confirmed that the tape-recording was
indeed his voice and he agreed with the general accuracy of the transcription. He simply denied
any responsibility for the utterances on the basis that he suffers from epilepsy and was in a pre-
seizure state at the time the statement was taken. As he put it, "I can't recall anything on that
tape." Nonetheless, in his cross-examination he could recall the events leading up to his
questioning and the portion of the questioning prior to the recording being made. Mr. Falby's
evidence is dealt with in more detail below.
Wing Ong also testified. His was the other user ID which authorized the continued payments to
Otis Wilson. He said that prior to the investigation into these matters he had never heard of Otis
Wilson and never authorized any payments to him. He also said that prior to these events he
would not lock his computer when he took short breaks or went to receive faxes. Those breaks
might last as long as five minutes; his computer would automatically log-off after ten minutes.
Further, if he were leaving his workstation for a brief period he would tell his co-workers so that
they would be aware of his whereabouts. The corner of Mr. Ong's workstation abutted the
corner of the grievor's, but they were in different rows. The common partition that separated
those rows was higher than the partitions that separated Mr. Ong's workstation from those in
front of and behind him in his row. He said that if he and the grievor both were standing, they
11
could see each other over the common partition. He could hear the grievor when he was
speaking.
Joe Sgro also testified for the W.S.I.B. At the time, he was the Director of Quality Improvement.
He had been advised on June 15,2002 that the Special Investigation Branch would be
interviewing one of his employees, Robert Falby. On June 16,2002 he received a telephone call
in which he was advised that Mr. Falby had been questioned, had confessed and had implicated
others. He was to be put on a paid leave until the investigation was completed. Mr. Sgro
attempted unsuccessfully to obtain advice from the Human Resources Department as to the
process to be followed. He then briefed his superior, Brock Horseman, went to the Special
Investigation Branch's offices and met with Mr. Falby. The union objected to the introduction of
any evidence relating to the subsequent discussions between Mr. Falby and Mr. Sgro because the
grievor was denied his substantive right to union representation. That issue is dealt with below.
As Mr. Falby's superior, it fell to Mr. Sgro to apprise himself of the details ofMr. Gladish's
investigation and complete his own investigation, which included an opportunity for Mr. Falby
to rebut any allegations. By letter dated August 7,2002 he afforded Mr. Falby that opportunity.
In the meetings that followed, Mr. Falby made no mention of a medical condition or its
manifestation at the interview with Mr. Gladish.
The grievor testified on his own behalf. He reviewed the process for authorizing payments to
claimants. He said that he was aware that he could authorize payments up to $15,000 in value.
He knew that the authorization limit had changed from $10,000 at some point. After that change
he did not treat payment authorizations any differently if they were more or less than $10,000 in
value. The grievor said that he knew Michelle Reid and Wing Ong as colleagues. He would
12
occasionally go for breaks with Ms. Reid because she too was a smoker. He was a lot less close
to Mr. Ong. The grievor could not recall ever having used either Ms. Reid's or Mr. Ong's
computer terminal; but did say it was possible he may have used Michelle Reid's if his terminal
was not operating and she was away. If he did so, he would log in with his own user ID and
password.
Mr. Augustine said that he knew Nigel Hunte very well, but not through the lunch-hour
basketball session. They did occasionally play cards together over the lunch hour. Mr.
Augustine got to know Mr. Falby through Nigel Hunte. He described their relationship as
"friendly". He testified that he did not know that Mr. Falby had implicated him in this fraud for
two or three weeks after he was suspended. Mr. Augustine met Otis Wilson through Mr. Hunte
and Mr. Falby. He said he never received money from Mr. Wilson and never authorized any
payments to him.
Mr. Augustine was cross-examined about the various large cash deposits made to his account.
He said that they may have been made by his mother or grandfather. He also said that from time
to time deposits were made by "National Money Mart", an enterprise that makes cash advances
against upcoming pay-cheques. He had no explanation for deposits that were listed as "Br to
Br". He had no recollection ofa $4,000 deposit on July 18,2001, nor a deposit on October 1,
2001 for $1300.00, nor the details of a $2000 deposit on December 4,2001. His evidence was
that he would borrow money from his mother or grandfather against undetailed dividends from
an investment company they shared. Either his mother or grandfather would deposit monies to
his account. He simply had no explanation for, or recollection of, the various deposits to his
account. Mr. Augustine also said that twelve months prior to his suspension he had a falling out
13
with Mr. Falby; they did not speak for ten months. In that period he did not see Otis Wilson
because Mr. Wilson was Mr. Falby's friend.
Mr. Augustine was quick to admit the possibility of various implicating scenarios put to him in
cross-examination, while denying any involvement in any of them. He said that when he was
questioned by Mr. Gladish he noted Mr. Gladish's tone and relied upon his experience, five or
six years earlier, when he had previously been accused of fraud by the Board. On that basis, and
from his legal knowledge gleaned from his roommate, who was a lawyer, he declined to give a
statement.
Mr. Augustine was charged criminally for this alleged fraud. Those charges were dismissed. It
was suggested to him in cross-examination that the charges were dismissed because he agreed to
testify against his former lawyer/roommate, Richard Zemla. He said that they were not dismissed
for that reason; rather, it was perjury charges against him that were dropped. Seemingly, he had
perjured himself in the course of standing as a surety in a bail application brought by Mr. Zemla.
Mr. Zemla had been charged criminally regarding an allegation that he had smuggled contraband
into a j ail. The perjury charges against the grievor were dropped in exchange for testifying
against Mr. Zemla.
The Employer's Submissions
The employer submitted that the facts of this matter are best understood when one applies a
common sense approach to their rationalization. Mr. Wilson took approximately fifty-five
thousand dollars. A Claims Adjudicator in the Chemical Sector facilitated those actions.
Further, a Payment Specialist was involved. It required knowledgeable people to accomplish
14
this fraud. We know it happened; the question is, who did it? Mr. Falby's statement provides
that answer and the investigator, Mr. Gladish, provided evidence of the taking of the statement
that puts the lie to Mr. Falby's claim that the statement was not true because of his medical
condition.
An examination of the statement reveals that on numerous occasions he volunteered the grievor's
name without being prompted to, and he freely admitted his own involvement. This general
overview fits with the fact that Mr. Falby, Mr. Augustine and Mr. Wilson were friends; the
grievor worked in the Chemical Sector; the grievor was absent from work on all but one occasion
when the cheques were disbursed and the grievor refused to participate in the investigation.
As to Mr. Falby's explanation in his testimony that it was his illness that accounted for his
statement, this was just one more progression in his shifting stories that tried repeatedly to
explain away his involvement. At first he just denied saying what was attributed to him, he
made claim that he suffered from a medical condition. His next explanation was that Mr. Wilson
owed him money for CD's. Again there was no mention of any medical condition. His claim
that his statement resulted from a seizure first surfaced while he was involved in criminal
proceedings. These are excuses that ought not to be accepted.
As to Mr. Falby's representation rights under article 13, there is a clear distinction between
investigation and disciplinary action. Mr. Falby's statement was taken as part of the
investigation. In any event, if there was a breach ofMr. Falby's representation rights, his
statement still stands as against Mr. Augustine since the grievor's rights were not breached. To
take such a technical position, as the union urges here, would call the administration of justice
into disrepute. Finally, this case involves the W.S.I.B. and employees who are charged with the
15
responsibility to protect the public purse. Such a breach of trust as this must be borne in mind
when considering such technical objections.
Again, taking a common sense approach, Mr. Augustine got one-third of the money and was
complicit in carrying out that fraud. It was appropriate for the Board to dismiss him and the
grievance should be dismissed.
The Union's Submissions
The union said that the jurisprudence is clear that the employer must establish such serious
allegations of criminal behaviour with clear and cogent evidence to a high standard of proof.
There is no clear or cogent evidence that Mr. Augustine was connected with the offence.
As to Mr. Falby's statement, the union said that it was so tainted that it was worthless. The
statement was taken contrary to Mr. Falby's Charter and collective agreement rights to
representation, and is not reliable. In this latter regard, the union noted that the first ten minutes
were not recorded, he was not advised that he was free to leave at any time; the evidence does
not establish that he knew he was obliged to tell the truth and that there would be adverse
consequences if he didn't tell the truth. The union also said that there is no indication Mr.
Falby's statement was credible, since it was lacking in detail and was replete with speculation
and hearsay.
The union emphasized that the employer had not discharged its onus. Even having Falby's
statement, it did not present evidence to support the purported admissions and incriminating
statements. Further, the evidence was said not to establish Mr. Augustine's guilt given the
16
general inadequacies of the investigation. Why did the Board notice only one of the three
cheques that were over $10,000? Why was Nigel Hunte not investigated more promptly and
thoroughly, given his personal connections to Mr. Wilson? Why did the investigator not more
thoroughly explore the grievor's bank statements, especially the branch-to-branch transfers?
Why were Nancy Marchese, Otis Wilson and Adrian Moores not called as witnesses?
The union also reviewed the bank statements and submitted that only the wildest conjecture
could tie the deposits with the payments to Otis Wilson. The union also reviewed the evidence
of Ms. Reed and Mr. Ong and noted that neither one had given Mr. Augustine the passwords to
their computers.
The Employer's Reply Submissions
The employer said that it was only a matter of circumstance that one of the cheques over $10,000
was caught since an adjudicator is authorized to issue cheques up to $15,000. The investigation
was said to have been adequate. The investigation also made adequate use of the bank
statements to establish a co-relation between cashing of the cheques and the making of large
withdrawals by Mr. Wilson on the one hand and significant deposits by Mr. Augustine on the
other hand.
As to the failure to call witnesses, the employer stated that Mr. Wilson and Mr. Moores, who is
no longer with the Board, failed to appear to their subpoenae and Ms. Marchese's evidence
would have been no more elaborate than her statement to the investigator, which was filed as an
exhibit.
17
Mr. Falby's statement was said to be reliable in that he made admissions against his own interest,
a hallmark of reliability, and he was told a number of times that he did not have to answer the
questions. With respect to the alleged breach ofMr. Falby's Charter rights, the employer
submitted that Mr. Falby was neither arrested nor detained, so those rights were not triggered.
With respect to the alleged breach ofMr. Falby's right to union representation, the employer
submitted that the meeting of July 16 at which the statement was taken was part of an
investigation, not a disciplinary meeting, so those rights were not triggered.
Reasons for Decision
It is convenient to deal first with Mr. Augustine's testimony. His explanations for various
significant deposits to his bank account have no depth of detail. Although he is not obliged to
exonerate himself, the employer's attempts to show that these deposits came from ill-gotten
proceeds from this alleged fraud are circumstantial evidence of the fraud. There is a significant
correlation between the cashing of the W.S.I.B.'s cheques by Mr. Wilson and the deposits to Mr.
Augustine's account.
Mr. Augustine's assertion that he had fallen out with Mr. Falby, and by implication Mr. Wilson,
is not convincing. He listed a number of people who could corroborate this fact, including his
mother and Mr. Falby. None of these people were called and Mr. Falby was very vague in his
testimony in that regard. I draw a negative inference from these evidentiary omissions and reject
the thrust of his assertion that he had had nothing to do with Mr. Falby in that period.
During his cross-examination, Mr. Augustine volunteered the explanations of the disposition of
his perjury charge and previous allegation of fraud against the Board. Those admissions do not
assist with the determination of just cause for his dismissal as a result of the instant allegations.
18
However, if I am wrong in my ultimate determination set out below that his discharge was for
just cause, his perjury would certainly have relevance to his fitness to be reinstated as an
adjudicator with the Board. That is, he perjured himself by telling the court he was an employee
of the Board, when he had been dismissed from his employment because he was believed to have
conspired with others to defraud the Board. He did so as a surety in support of a bail application
for his lawyer/roommate, who was accused of smuggling contraband into a jail. He had the
perjury charge withdrawn in exchange for testifying against his lawyer/roommate. All in all, if I
had found that his discharge was unjust, I might be persuaded that he is not a candidate for
reinstatement as an adjudicator of workers' injury benefit claims.
From the evidence taken as a whole, Mr. Augustine had a series of unexplained deposits made to
his bank account that corresponded in time to the improper benefit payments to Otis Wilson.
However, he had no more or less opportunity to authorize those payments than anyone else in the
Chemical Sector. That is, he had the opportunity to authorize the payments and there is evidence
that he received some of the proceeds. What distinguishes him from all of the others is the
statement given by Mr. Falby.
The admissibility of that statement was vigorously challenged by the union. I have carefully
considered the union's arguments against admitting or relying upon that statement. In my view,
the statement is admissible. First, the union said that the entire statement had not been taped and,
as an incomplete record, it should be rejected. However, in his testimony, Mr. Falby did not
seriously disagree with Mr. Gladish's account of the portion of the statement that was not taped.
Accordingly, that omission does not affect the reliability of the audio statement, there being no
serious issue as to what transpired. Second, Mr. Falby's statement was first sought to be
introduced without calling him as a witness. When that approach was rejected by the Board, he
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was called and cross-examined, thereby meeting the earlier concerns about the necessity of
admitting the statement without hearing his viva voce evidence. He was examined and cross-
examined on the statement, permitting a full consideration of his involvement. Having had the
benefit of his tape-recorded statement along with his examination and cross-examination thereon,
I am content to admit the statement for the truth of its contents. I reach this conclusion both
generally and pursuant to s. 48 (12) of the Labour Relations Act, 1995.
In my view Mr. Falby's explanation for the unreliability of the statement must be rejected. I am
not rejecting his testimony that he suffers from epilepsy. Nor do I necessarily reject his
explanation that in a pre-seizure state he would have no recollection of making the utterances
caught by the audiotape. There was no medical evidence that would support or oppose that
explanation. I do reject his evidence that he was in such a state.
Mr. Falby's evidence was quite variable as it pertained to his ability to recall the events at the
time he was interviewed. In his evidence before me he readily agreed with many propositions
put to him as to what had taken place during the interview. He generally agreed with Mr.
Gladish's description of what had gone on in the interview prior to the beginning of taping. He
recalled that there was someone else there in addition to Mr. Gladish. He recalled that he was
not asked if he wanted to be interviewed or whether he wanted legal or union representation. He
recalled being told the background scenario. He recalled being told that they had just finished
talking with Otis Wilson and that Mr. Wilson had "given him up." He categorically said that he
was never advised he could get a lawyer or a union representative. He said that he was not told
that he could leave ifhe wanted. His detailed recollection of the events in the interview that
might benefit him, juxtaposed with his black-out over those aspects that hurt him leave his
evidence regarding the interview as a self-serving account that must be rejected. Having
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considered the statement as a whole, I find it more likely than not that he gave the statement
voluntarily and that he told the truth when he said that he and Mr. Augustine participated in a
scheme that resulted in the fraudulent payments to Mr. Wilson.
The union also was concerned that Mr. Falby's Charter rights and union representation rights
had not been protected in the taking of this statement. Assuming, without deciding, that the
Charter of Rights and Freedoms applies to an employee in Mr. Falby's circumstances, I
conclude that his rights were not abridged. The protection relied upon by the union was Mr.
Falby's right to counsel found in the Charter at section 10 as follows:
10. Everyone has the right on arrest or detention
(a) to be informed promptly of the reasons therefore;
(b) to retain and instruct counsel without delay and to be informed of that
right; and
(c) to have the validity of the detention determined by way of habeas corpus
and to be released if the detention is not lawful
The precondition for the applicability of s. 10 is that Mr. Falby had been arrested or detained.
Mr. Falby testified that he was never told that he could leave. When asked why he didn't leave
he said that he didn't know. He also said that he didn't know why he would leave. He didn't
know what the interview was about, but he knew that he worked in the same building as those
questioning him. From his testimony, it is clear that he considered Mr. Gladish to be an
employee of the W.S.I.B.. There is no indication that he believed that he had been arrested or
detained. Further, although the union did make submissions that Mr. Gladdish had significant
statutory investigative powers, and that he was a person in authority akin to a peace officer, the
viva voce evidence and the recorded statement do not bear those submissions out.
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The union also opposed the admission of the statement on the basis that Mr. Falby had been
denied union representation. The provision of the collective agreement dealing with union
representation is found at article 13.01 as follows:
13.01 When the Employer meets with an employee to advise of disciplinary action, the
employee will be advised of the nature of the meeting and they have the right to
Union representation. In the event of an employee's impending discharge, the
Union will be given advance notice of such action.
The union relied on a number of authorities that stand for the well-known proposition that where
union representation is a substantive right, a failure by the employer to afford such representation
will render any discipline imposed void ab initio.
Assuming, without deciding, that Mr. Falby was entitled to union representation at the interview
with Mr. Gladdish, the remedy for such a failure to provide representation would be to strike out
any discipline imposed against Mr. Falby. The union seeks to expand the remedial effect to
include the expunging of the statement. In my view the authorities do not reach that far. Article
13.01 does not act to strike out Mr. Augustine's disciplinary discharge in these circumstances,
since his right to representation was not abridged.
I also have great doubt that Mr. Gladdish's interview was an instance of the employer meeting
with an employee to advise of disciplinary action. On its face, it was a meeting held as part of
the investigation; if I needed to, I would so hold. Clearly Mr. Sgro's meeting was to advise Mr.
Falby of disciplinary action and a union representative was not present. If! was charged with
assessing Mr. Falby's discipline, I would be troubled by the status of the utterances made by Mr.
Falby during that meeting since he made a significant admission. However, I am dealing with
Mr. Augustine's grievances and Mr. Falby said nothing further to implicate Mr. Augustine.
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The alleged failure to provide Mr. Falby with union representation at his interview with Mr.
Gladdish does not render his statements inadmissible as against Mr. Augustine.
I turn now to an assessment of the content ofMr. Falby's statement, having found it admissible
and reliable for the truth of its contents. In this regard, it is sufficient to summarize some
excerpts from the statement.
Near the beginning of the statement Mr. Falby concurs that he is making it voluntarily and has
been advised that he may be charged with fraud over $5000. He was warned that anything he
said might be used against him as evidence and that he was not obliged to answer.
Mr. Falby then said that Jeff Augustine sent him a request to change the payee from Bell Canada
to be the worker, Otis Wilson, and that Mr. Augustine then extended the payments. He said that
there were three of them involved: himself, Otis Wilson, and Jeff Augustine. He said, "Well we
just figured if there was three of us involved right, that you would just split it three ways."
Further into the statement Mr. Falby described splitting the payments. For example he was
asked how he made arrangements to receive payments. He said, "he [Jeff] would just call me
and we'd just meet like we always meet to do anything." Although he did not see Mr. Augustine
take any money, the scheme is clearly enough described to capture Mr. Augustine's involvement.
There is no doubt from reviewing the tape and transcript that the interrogation techniques ofMr.
Gladdish and his superior, Adrian Moores, were less than stellar. However, on a complete
consideration of the statement I find that there is clear and cogent evidence that Mr. Augustine
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was part of a conspiracy to defraud the W.S.I.B. of approximately $55,000 and was justly
dismissed from his job as a Claims Adjudicator.
Decision
The grievance is denied.
Dated at Toronto the 28th day of November 2006