Former financial head sues Active Care, alleges he was fired for exposing boss's forgery

Photo: Castanet

The former chief financial officer of a Kamloops-based social services agency has filed a lawsuit alleging he was wrongfully fired after blowing the whistle on a forged document in his boss’s mortgage application.

Darcy Johnson is suing Active Care Youth and Adult Services alleging wrongful termination last year that cost him financially and caused him public humiliation.

According to Johnson’s lawsuit, which was filed May 10 in B.C. Supreme Court in Kelowna, he was hired last June as Active Care’s CFO.

In the document, Johnson claims to have become aware of a number of forged documents early this year, including one falsely bearing his own signature.

“The forged documents related to income and employment verification for Daryl Smeeton, chief executive officer of the defendant, and Mr. Smeeton’s wife,” the notice of claim alleges.

“The plaintiff was immediately skeptical of the forged documents as he was unaware of the statements of fact contained therein, in particular with regard to bonus payments to Mr. Smeeton and employment of Mr. Smeeton’s wife, all of which he would have been aware of as a result of his knowledge of the finances of the defendant due to his employment with the defendant.”

Johnson’s claim alleges the phoney documents were part of a personal mortgage application Smeeton made at a local bank.

According to Johnson, he confronted Smeeton about the documents on Feb. 6 and reported them to TD Bank two days later.

“Mr. Smeeton advised the plaintiff that his employment with the defendant was terminated later that same night, Feb. 8, 2023,” the claim alleges.

“The termination of the plaintiff’s employment was in retaliation for the plaintiff confronting Mr. Smeeton about the forged documents and/or contacting the mortgage broker about same.”

Johnson claims that is a “flagrant breach” of the terms of his employments, which required just cause and reasonable notice.

Castanet Kamloops contacted Active Care to ask Smeeton for comment. He said he plans to fight Johnson's allegations in court.

“Active Care Youth and Adult Services strongly denies each and every one of the allegations made against our organization in this claim,” he said.

“We look forward to presenting our defence in court.”

None of the allegations in Johnson’s claim have been proven in court.