Nova Scotia·CBC Investigates

CNIB settles with lottery kiosk operators over missing funds

The CNIB has concluded court actions against a number of people who operated lottery kiosks in the Maritimes.

Settlement details confidential, but lawyers confirm agreements have been reached

CNIB has reached out-of-court settlements with lottery kiosk operators it sued over missing funds. (iStock)

CNIB has reached out-of-court agreements with three lottery kiosk operators it once accused of being responsible for thousands of dollars in missing funds.

The three most recent agreements are with Samantha Russell in Bathurst, N.B., and Sandra Gallant and Sandra Ellis in Summerside, P.E.I. Lawyers for the three women confirm the settlements and say the lawsuits against their clients are being withdrawn.

"The parties are pleased to have resolved the matter and to be moving forward," said Stephen Ellis, a lawyer who represents his mother Sandra Ellis, along with Gallant.

"No further comment will be made by the parties."

CNIB, a charity that helps Canadians who are blind or live with vision loss, raises money for its programs through a contract to sell Atlantic Lottery Corporation products at kiosks.

All three women were hired by Paul McCarthy, the national charity's then Atlantic retail gaming manager, to run Atlantic Lotto ticket kiosks in their communities. McCarthy is no longer employed by CNIB.

CNIB sued Russell for $16,595.64 in lost revenue. She countersued, claiming CNIB terminated her employment without just cause, causing her health issues and public humiliation.

The national charity was seeking $9,880 plus interest from Gallant, and $38,000 from Ellis.

All of the settlements are the subject of confidentiality clauses, which prevent the kiosk operators from discussing the details.

However, in court documents filed before the settlement, Ellis suggested CNIB's managers "had converted CNIB monies generated at the Summerside store to their own personal use and were unjustly enriched in the process."

"We all agree money is missing." Ellis said earlier this year. "We just disagree on where it went."

CNIB previously settled with former Nova Scotia kiosk operators, Ed House and Donna and Gary Kirby.

In February 2015, a CBC Investigation found CNIB was suing former lottery booth operators in the Maritimes, seeking to recover $100,000 that had gone missing. At the time, those being sued said they were being unfairly targeted and had done nothing wrong. 

CNIB has repeatedly refused interview requests. It did not respond to requests for comment on the latest settlements.