In less than two years, a Vancouver Island woman effortlessly tricked the B.C. government into handing her $357,000 for nothing, in an online billing scheme involving several non-existent childcare clubs.
The Sunday Province has confirmed these shocking details in connection to one of the 10 government-employee scams revealed Monday in The Province’s exclusive report on B.C.’s special fraud investigative unit.
As we reported, all financial details and the identities of contractors and government workers involved in the 10 scams probed by the unit in summer 2013 were redacted from confidential documents.
Although an unidentified government clerk was investigated in the Vancouver Island After School Fun scheme, the RCMP only laid charges against the contractor involved.
In June 2013, licensed childcare contractor Victoria Ann Rutenberg, 39, was found guilty on three fraud counts.
Crown prosecutor Bruce Morrison told court Rutenberg’s scam systematically using online expense claims to treat the Ministry of Children and Family Development like an ATM wasn’t difficult at all.
Court heard that between July 2009 and June 2011, Rutenberg tapped a top-up fund for licensed childcare providers, receiving cash to run two Comox Valley After School Fun programs that no longer existed, and grossly over-billing for non-existent children in a third program.
In her “real” childcare at a Courtenay school, court heard that Rutenberg usually minded no more than 10 kids, but consistently billed beyond the maximum of 40.
The ministry provides contractors funding based on the number of children enrolled, over and above fees paid by parents.
“I have no idea how you got involved in this,” B.C. Supreme Court Justice Robin Baird told Rutenberg, after finding her guilty on three fraud counts. “It boggles my mind.”
Baird told court that Rutenberg fraudulently collected $900 per business day from the government, on average, and did so online, “without uttering a word.”
Court heard that Rutenberg’s scam was finally uncovered by a banker who noted irregular transactions, and contacted the RCMP.
Rutenberg routinely went to her bank with $20,000 government cheques, court heard, putting small amounts into her own account and addressing bank drafts to another business. That business appears to be located in Surrey, according to online records.
Confidential documents obtained by The Province say the special investigative unit of the comptroller general examined records from the government clerk responsible for Rutenberg s account, to assist the ministry in providing appropriate evidence to support the RCMP s investigation.
On Friday, a ministry spokesman told The Province that the “RCMP conducted an investigation and no one from the ministry was charged, and the ministry does’t have any concerns with our staff,” and that further comment was not appropriate while the case is before court.
The ministry will seek a full restitution order for defrauded funds after Rutenberg is sentenced, a spokesman said.
All ministry staff overseeing the childcare operating fund received fraud training in September 2012, and audits are conducted on childcare providers to ensure fraud does not continue, a spokesperson said.
