Former Bunyan's Cove committee member facing 28 charges, accused of forgery and fraud

A former member of the Bunyan's Cove local service district committee is facing charges of forgery and fraud following a police investigation into spending from the committee's bank account.

The RCMP recently laid 28 charges against Stephanie Chatman, who was a member of the committee before the provincial government stepped in to dissolve it in 2019.

The Mounties allege that Chatman committed fraud by writing a dozen cheques from the local service district to herself or to companies connected to her. Police describe those cheques in court papers as "false documents."

Chatman did not respond to requests for comment. Her case is scheduled to be called at provincial court in Clarenville in July.

According to the court documents, Chatman is accused of forging cheques totalling almost $100,000.

Police launched an investigation into the community's accounts in 2019, after a new committee was established for the local service district.

In September of that year, new members went to the RCMP about unexplained spending in their records.

Cheques written to former member or companies

In 2019, CBC News obtained financial documents relating to the local service district, including photocopies of cheques and partial bank account statements.

A local service district is a type of local government that is more limited in size and scope than a municipality.

The records showed photocopies of 12 cheques made out to Chatman, either written to her directly or to businesses linked to her. The cheques were written over a 16-month period in 2017 and 2018, and totalled nearly $100,000.

The biggest cheque, written in July 2018, was worth $32,693, and was payable to a company connected to Chatman.

There was also a cheque sent back to the local service district, written by a firm linked to Chatman, for $100,000. It was deposited into the committee's bank account on Sept. 16, 2019 — the same day the provincial government intervened and dissolved the committee because of a breakdown in communications and operations.

The discovery of financial issues at the local service district caused concern in the community, and a member of the committee told CBC News in 2019 that residents cried when they were told about the issues.

The local service district and the community was saving money to purchase a new fire truck, and members feared the financial issues would prevent them from replacing their 1971 Ford vehicle.

The community did eventually acquire a replacement, which was delivered in the spring of 2020.

While it is not a brand-new machine, then fire chief Reg Tucker complimented the truck, and the town, in a Facebook post on behalf of the fire department at the time.

"I would like to take the time to thank the LSD of Bunyan's Cove for their help and support in getting our new addition, the community for their past and continued support and the fine family of fire members who put a lot of time and effort in to getting another truck," he wrote.

"Not new, but it's a beauty and we own it."

Read more from CBC Newfoundland and Labrador