A lawsuit filed by the South Asian Centre of Windsor after $362,739 was misappropriated from the charity names a former Ward 7 councillor and its former president.
Windsor Police investigated financial irregularities at the charity earlier this year and arrested the 81-year-old former president and treasurer, Dr Sushil Jain. He faces fraud, money laundering, and possession of property obtained by crime charges after the funds were deposited into his personal bank accounts.
Jain abruptly resigned from his post in April 2023, and the charges have not been proven in court.
The civil suit names Jain and Jeewan Gill, who served as the charity's director, secretary, vice-president and acting president from 2014 to 2023. Gill was also the treasurer from January 2022 to July 2023.
It seeks $500,000 in damages from both Jain and Gill for breach of fiduciary duty and wrongful conversion, $150,000 in special damages and punitive damages of $200,000.
The irregularities were found in May 2023 by Dr Fazle Baki, who took over as charity director when Jain left.
The lawsuit claims Jain "knowingly and wrongfully opened bank accounts, applied for grants on SACW's behalf, withdrew funds meant for SACW, retained and used credit cards in SACW's name, and wrongfully kept SACW property."
It also alleges negligence on Gill's behalf and says he "breached his fiduciary duty by failing to adequately oversee the organization's funds and alert others to Jain's alleged misconduct."
Soon after Jain's arrest, the charity changed its bylaws to prevent future misconduct. It also said it was determined to recover the misappropriated funds.
