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Former executive jailed for defrauding Nanaimo Community Hospice Society

The former executive director of the Nanaimo Community Hospice Society has been jailed for four months and ordered to pay restitution of $17,000. Susan Steen, 71, pleaded guilty to defrauding the society of $6,106 from December 2016 to June 2017.
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The former executive director of the Nanaimo Community Hospice Society has been jailed for four months and ordered to pay restitution of $17,000.

Susan Steen, 71, pleaded guilty to defrauding the society of $6,106 from December 2016 to June 2017.

The Nanaimo Community Hospice Society offers free compassionate care and support to people who are dying and coping with life-threatening illness, caregiving or faced with losing a loved one. Its annual budget is $1 million.

Steen was given a corporate credit card to be used only for business purposes. During the six months she worked for the hospice society, Steen used it to pay for casino charges, cash advances and salon services totally $6,106. The society incurred more than $13,000 in audit and legal fees investigating the thefts.

Provincial court Judge Ted Gouge had to decide whether to send Steen to jail.

The Crown was seeking a jail sentence followed by 18 months of probation. The defence asked for a suspended sentence and probation.

Steen had no previous criminal record. She has extensive experience as a manager of non-profit organizations and was executive director of the Central Okanagan and Kelowna Hospice Foundation from 2010 to 2016.

The court heard that Steen has a long history of mental-health issues, including a severe gambling disorder, Gouge said. Steen admitted that she stole from the society to feed her gambling addiction.

Since her arrest, Steen has attended counselling. Her counsellor said she is highly motivated and has made good progress. Steen has registered for the voluntary self-exclusion program, which prevents her entering casinos. She has a new job with another non-profit agency and her employer is aware of her conviction, Gouge said.

In victim impact statements, members of the board of directors said they were disappointed they had unknowingly placed the reputation of the hospice society at risk and felt guilt and shame. Senior staff also felt betrayed and began to question their own competence.

They worried about effect of the fraud on donors, the community at large and their key partners, including the Regional Health Authority and the Palliative Care Unit at Nanaimo Hospital.

Court has said that barring truly exceptional circumstances, a first offender convicted of embezzlement must be sent to jail, Gouge wrote in his Dec. 20 judgment. The breach of a position of trust for personal gain must attract a deterrent sentence and, absent exceptional circumstances, some period of incarceration.

Gouge did not find Steen’s gambling addiction to be an exceptional circumstance or a mitigating factor and said he was obliged to impose a jail sentence.

“Having regard to the relatively small amount stolen by Ms. Steen, I think that a fit sentence in this case would be four months’ imprisonment,” Gouge said.

During her probation, Steen is not to be found on the premises of a licensed casino. She must her give prospective employers a copy of the reasons for judgment and not apply for or accept a volunteer position with any charitable or non-profit society unless she has first provided a copy of these reasons for judgment.

Steen must take counselling as directed by her probation officer.

Since her arrest, Steen has repaid $2,065 to the society.

ldickson@timescolonist.com