City crane company accuses former CFO of lifting $3.1M

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This article was published 01/11/2017 (2612 days ago), so information in it may no longer be current.

A Winnipeg crane company is suing its former chief financial officer for $3.1 million, alleging he misappropriated company funds to line his own pockets over a three-year period.

R. Litz & Sons Company Ltd. filed a statement of claim in Manitoba Court of Queen’s Bench Oct. 30 against Peter Ramdath. Ramdath was the company’s controller and chief financial officer from Jan. 23, 2008 until Oct. 2 when he resigned from Litz Crane, the claim says.

It says Ramdath entered into a series of unauthorized transactions without the knowledge or consent of his employer that led to losses adding up to more than $3 million.

From Mar. 1, 2014 to Feb. 28, 2015 Ramdath directed payments from the company’s Canadian operating account with HSBC Canada to pay accounts, advance funds or make purchases for his own personal benefit adding up to $976,308. From Feb. 1, 2015 to July 31, 2017 Ramdath directed payment’s from his employer’s operating account with Canadian Western Bank to benefit himself that added up to $2,133,378, the statement of claim says.

The claim said Ramdath used company credit cards for transactions that enriched himself to the tune of $3,109,686.

It says Ramdath has been disposing of his assets or trying to dispose of his assets in Manitoba since he resigned from Litz Crane last month. The statement of claim is asking the court for an injunction that would restrain Ramdath from disposing of any assets in Manitoba. The statement of claim said the company is entitled to an accounting and tracing of all sums misappropriated by Ramdath from Litz Crane to recover the money it’s owed.

Litz Crane is also asking for punitive damages, alleging Ramdath’s “highhanded, outrageous and unlawful conduct show a wanton disregard for Litz Crane’s rights.”

No statement of defence has yet been filed.

Litz Crane & Rigging was founded in 1904 and serves the construction and heavy machinery-moving industry. Its areas of expertise range from crane operation to heavy hauling and heavy equipment repair, the company’s website says. It has offices in Winnipeg, Brandon, Thompson and Saskatoon, Sask.

carol.sanders@freepress.mb.ca