Accountant who allegedly stole $4M was trusted employee By: Carol Sanders Posted: 7:00 PM CST Thursday, Jan. 31, 2019 Last Modified: 10:51 AM CST Friday, Feb. 1, 2019 Updates

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This article was published 30/01/2019 (2157 days ago), so information in it may no longer be current.

The question of how the former controller for R. Litz & Sons Co. Ltd. in Winnipeg, who allegedly stole more than $4 million from his employer, could live like the rich and famous and get away with it for so long has many people scratching their heads.

How did no one notice? Was there no oversight?

Last week, Winnipeg police charged Peter Ramdath, 42, with fraud, theft, falsification of books and documents, money laundering and possessing property obtained by crime. Police allege that from 2012 to 2017, he used his position at the crane company to convert company funds to his own benefit.

A person close to the situation, who agreed to comment without publicly being identified, said there was supposed to be financial oversight, but somehow it was ineffective.

Litz paid tens of thousands of dollars to a globally recognized accounting firm to audit Litz’s books every year from before Ramdath’s hiring and no red flags were raised, the source said. Litz hasn’t taken any action against the auditing firm, the source said.

The company is working its way out of bankruptcy, which is being overseen by another accounting firm, and paying its debts after losing millions to the alleged fraud as well as an economic downturn that hurt its business in Alberta and Saskatchewan.

Ramdath, who was Litz’s controller and CFO from Jan. 23, 2008 until he resigned on Oct. 2, 2017, is not registered as a Chartered Professional Accountant in Manitoba. The CPA did not respond to a request for comment. While the role of a CFO is sometimes filled by an MBA or a lawyer, the source couldn’t say what Ramdath’s qualifications were, other than being an accountant.

Whatever his credentials, Ramdath had the trust of company owner Bill Litz, who hired him to look out for the best interests of the firm, which was founded by his grandfather in 1904, Litz said in a court affidavit.

At age 70, Litz said he provided financial oversight of the firm by requiring that all cheques payable had to be signed by him or his wife, Shirley Litz. Ramdath occasionally provided other banking documents to sign but Litz said he understood it was to pay for “legitimate business expenses.” He believed Ramdath’s explanations that they were in the best interests of the company, the court document says.

And when it came to online banking, the owner said his computer skills are limited, and that he relied on Ramdath. The CFO was never authorized to pay for any personal expenses using Litz accounts, Litz’s affidavit says. In 2016, some of the accounting staff mentioned they thought Ramdath had a credit card in the name of Litz Crane. Litz said he confronted Ramdath. Ramdath denied it and Litz believed him, he said.

Although they worked together, Litz said he was not a close personal friend of Ramdath. “I was aware that (he) got married on Aug. 2, 2014, however I was not in attendance at the wedding.”

Had the company owner attended the wedding of the accountant, who was hired at a starting salary of $65,000, Litz would’ve seen a lavish affair fit for a millionaire.

The Fort Garry Hotel ballroom reception was so extravagant that the couple’s wedding planner uses images from it in promotional material. It featured elaborate decorations, table settings as well as professional acrobats.

In a wedding video, the couple describe themselves as “known by family and friends for their extravagant tastes… Justyna (Rydzygowska, the bride) says Peter’s powerful sense of drive inspires her. He knows what he wants and will find a way to get it.”

Ramdath’s largesse was outlined in a court affidavit filed by Litz’s general manager, Patrick Szypowski, who reviewed the company’s records and the ex-controller’s spending sprees after Ramdath resigned. One of the discoveries was a GST reassessment notice from the Canada Revenue Agency, which had been sent to Ramdath. It said Litz Crane owed $1.1 million — the revelation was news to everyone in the company.

Another was that Ramdath owned a Maserati, an Aston Martin, and a McLaren sports car. He didn’t flash the high-end luxury machines around the crane company’s office on McPhillips Street, the source said. Instead, Ramdath was known to drive to work in a Cadillac sport utility vehicle that could’ve been leased.

He and his wife lived in East St. Paul and owned other properties, including a home at 926 Manitoba Ave. and a property that he purchased with his brother in 2010 for $335,000 that was transferred to other family members in 2014 for the sum of $1. The affidavit points to email exchanges indicating Ramdath was looking at purchasing other residential properties. He used the company credit card to buy gift cards at Winnipeg restaurants and booked a table for 12 at a now-defunct high-end nightclub in Las Vegas at a cost of $8,000.

Ramdath owned side businesses, including two fitness clubs. His wife had a clothing store called Luxe & Charm Boutique, which listed the couple as directors. The company is no longer operating, the court document says.

In a statement of claim filed after Ramdath resigned, Litz Crane asked a judge to freeze Ramdath’s assets and the order was granted. No statement of defence was filed.

On Jan. 24, Winnipeg police searched Ramdath’s East St. Paul home and seized jewelry and other luxury items, including vehicles.

That same day, after a lengthy investigation by the financial crimes unit, Winnipeg police laid criminal charges against Ramdath.

He has not been convicted of any charges and is presumed innocent. No court date has been set.

carol.sanders@freepress.mb.ca

Carol Sanders
Legislature reporter

After 20 years of reporting on the growing diversity of people calling Manitoba home, Carol moved to the legislature bureau in early 2020.

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