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Ex-head of transition society in Chilliwack denies misappropriation

Counterclaim alleges 91Ƶconspiracy91Ƶ among Wilma91Ƶs employees, board to oust Kathleen and Erin Mosa
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Kathleen Mosa, (centre) former executive director of Wilma91Ƶs Transition Society, and her daughter Erin Mosa are being sued by the society for misappropriation of funds. The mother-daughter pair filed a response and counterclaim on May 22. Mosa is flanked by Housing Minister Ahmed Hussen and Chilliwack Mayor Ken Popove at an affordable housing announcement in Chilliwack on Thursday, July 28, 2022. (Jenna Hauck/ Chilliwack Progress file)

Two Chilliwack women being sued for misappropriation of funds have responded to the civil lawsuit filed against them by their former employer, Xolhemet Society/Wilma91Ƶs Transition House.

Kathleen and Erin Mosa, mother and daughter, filed their response and counterclaim on May 22 in B.C. Supreme Court, denying all allegations against them, calling them 91Ƶfalse, and without merit.91Ƶ

The Mosas were fired in April due to alleged 91Ƶunauthorized transactions,91Ƶ totalling $1.4 million, according to details in the original notice of claim filed by the society on May 2.

Kathleen and Erin were employed by 91ƵXolhemet Society/Wilma91Ƶs Transition House,91Ƶ the legal name of the non-profit referred to in plaintiff documents as 91ƵWilma91Ƶs Transition Society.91Ƶ

The counterclaim states the two Mosas were never given a chance to respond to the allegations of misappropriation of funds.

Contrary to the assertion in the society91Ƶs notice of claim that the wrongful transactions 91Ƶdid not relate to any legitimate purpose pertaining to the society91Ƶs business or affairs, did not further the society91Ƶs mandate, were not justified business expenditures, and were not in the best interests of the society,91Ƶ the counterclaim states all of the expenditures in question were for board use, including those for fine dining, casino and hotels.

It also alleges there was a 91Ƶconspiracy91Ƶ afoot among employees and board members 91Ƶto oust Kathleen and Erin Mosa.91Ƶ

Kathleen Mosa was the society91Ƶs executive director, and Erin Mosa was a 91Ƶhomelessness prevention and support worker,91Ƶ a supervisor, and more.

Kathleen was suspended by the board in September 2023 due to an alleged breach of confidentiality, and then terminated in April 2024 after an audit by MNP that allegedly uncovered financial improprieties.

In her counterclaim, Kathleen stated that the breach of confidentiality was actually perpetrated by a board member.

After being fired, Kathleen and Erin were cut off from accessing work emails, and asked to return electronics, keys, fobs, and work credit cards.

91ƵThe termination was a wilful and arbitrary breach of the contract and constituted a wrongful dismissal of Kathleen by the society, which is the subject of a counterclaim herein,91Ƶ the response document continued.

No one met with Kathleen in person but a letter came through counsel, falsely stating a 91Ƶtermination meeting91Ƶ had taken place on April 9, 2024.

In fact the termination itself 91Ƶshocked and devastated91Ƶ Kathleen, and prior to the letter, Kathleen had no disciplinary history with the society.

Her counterclaim states that a group of employees, Ellen Clifford, Jayme Clifford, Kirstin Hall and Christine Devers (together referred to as the Clifford group) allegedly 91Ƶengaged in a co-ordinated and calculated effort to see Kathleen and Erin removed from the Society and to take control of the organization for themselves.91Ƶ

Her response further states that as ED, Kathleen had to reprimand members of the Clifford group or discipline them for concerns such as: time theft, falsifying sign-out sheets, and forging her signature on cheques.

91ƵAs a result of the above items, and for other reasons, the Clifford group developed jealousy and resentment toward Kathleen, and by extension, to Erin. This manifested in the Clifford group speaking negatively about Kathleen and the society in public and in private,91Ƶ the document continued.

The response denies all allegations about the transactions, which she said had been recorded and reconciled in the society books by other employees, approved by the board, and audited by MNP during the year audit without issues or objections.

91ƵKathleen denies that she has fraudulently, wrongfully, or secretly spent, misappropriated, or otherwise used any other society91Ƶs funds for personal use or for purposes unrelated to the society91Ƶs business or affairs.91Ƶ

The former ED said she did not 91Ƶpersonally benefit91Ƶ from any of the alleged unauthorized transactions, nor did Erin or anyone else in her family.

91ƵThe society91Ƶs claim as a whole is the result of a malicious attempt by the Clifford group and the board members in support of the Clifford group to humiliate, embarrass and destroy Kathleen91Ƶs career and her reputation.91Ƶ

Kathleen said the impact of the lawsuit and resulting media attention added to and aggravated the former ED91Ƶs existing mental distress caused by the termination in April.

Kathleen was 52 years old and had been employed by the Wilma91Ƶs for 16 years when she was let go in a 91Ƶcallous and insensitive manner91Ƶ with officials 91Ƶtreating her like a criminal91Ƶ after many years of dedicated service.

The counterclaim states Kathleen Mosa will be seeking relief in the form of the following damages:

a. damages for wrongful dismissal and breach of contract;

b. damages for breach of the duty of good faith and honest performance;

c. general damages;

d. aggravated damages;

e. punitive damages;

f. special damages;

g. special costs or in the alternative, costs;

Xolhemet Society/Wilma91Ƶs Transition House provides a transition house, second stage housing and other supports to women and children fleeing interpersonal violence.

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Jennifer Feinberg

About the Author: Jennifer Feinberg

I have been a Chilliwack Progress reporter for 20+ years, covering city hall, Indigenous, business, and climate change stories.
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