Red Deer City RCMP are now investigating allegations of fraud at the Red Deer Golf and Country Club.
Earlier this year, the club’s executive reported to members that it had found evidence showing that approximately $917,000 had been taken from its bank accounts over a period spanning several years.
Merv Thurmeier, who was president during 2010, told members in a letter circulated just before the club’s Annual General Meeting on Jan. 17 that an employee had admitted to forging cheques and was dismissed on Nov. 29.
Some of the money has been recovered and steps were being taken to recover more, members heard.
Thurmeier told the membership that while the board of directors had no plans to launch a criminal investigation, any member was free to lay a complaint with the RCMP.
Const. Chris Kosack, media liaison officer for the Red Deer City RCMP, confirmed on Wednesday that the Red Deer fraud unit has received a complaint and an investigation is now underway.
Michael Phelps, elected president of the golf club for 2011, said he has not yet received official notification of the investigation.
The golf club will co-operate fully with the police once a written notice has been received, said Phelps.
Details of the alleged fraud were published in the club’s annual report and outlined in the letter Thurmeier mailed to members on Jan. 6.
Notes to the club’s 2010 financial statements state that $425,200 disappeared in 2010, $315,005 in 2009, $153,330 in 2008 and $23,500 in 2007, for a total of $917,035 over four years.
A legal agreement was struck with the accused employee, enabling the club to recover $225,000.
While details of the agreement cannot be discussed, there is a possibility that more of the missing money can be recovered, Thurmeier said in his letter.
Thurmeier’s address to the membership, as published in the annual report, states that internal procedures and controls have been adjusted to deter and prevent future frauds.
bkossowan@www.reddeeradvocate.com