Ex-official launches defence against ‘outrageous’ claims

One of three former senior union leaders facing a $6 million-plus lawsuit launched by the Ontario Public Service Employees’ Union says it makes “outrageous and unfounded” allegations against him despite his more than 14 years of service. In his statement of defence, filed with Ontario’s Superior Court of Justice, former administrator of financial services Maurice Gabay said he was a “loyal and hardworking employee throughout his approximately 14.5 years of service to OPSEU.”

“Gabay had a clean disciplinary record, and was never advised of any concerns or allegations by OPSEU against him” until the lawsuit was launched and “long after his employment was terminated on a without cause basis,” his statement of defence states.

The lawsuit, launched in January, alleges Gabay, longtime president Warren “Smokey” Thomas and former first vice-president/treasurer Eduardo Almeida withdrew a total of $670,000 in cash from a strike fund without explanation, received “significant compensation” on top of their salaries, and had unionpurchased cars transferred to themselves and family members.

In addition, “significant expenses” were charged to union credit cards without receipts, the union’s statement of claim says.

OPSEU is seeking “recovery of funds and assets unlawfully transferred” in the amount of $1.75 million from Thomas, $3 million from Almeida and $1 million from Gabay, as well as damages of $6 million for “breach of fiduciary duty, breach of contract, conspiracy, conversion and/or unjust enrichment (less any amounts recovered),” the statement of claim says.

In its statement of claim, the union says financial irregularities came to light in a forensic audit.

None of the allegations has been proven in court.

Gabay’s statement of defence says “it was a long-standing practice at OPSEU to withdraw funds in cash from the strike fund” and that all transactions were authorized by Thomas or Almeida.

“Gabay denies making or authorizing any inappropriate withdrawals, and denies receiving any amounts from the strike fund for his own benefit,” the statement of defence says, and nor did he try to delay the forensic audit, as alleged.

It also says his employment was terminated by OPSEU without cause.

Gabay has launched a counterclaim, seeking $750,000 in damages given how OPSEU has treated him, making “outrageous and unfounded allegations” against him and publicizing them, saying it was “designed to inflict, and did inflict, mental distress.”

Earlier this month, Thomas filed his statement of defence, saying the lawsuit launched by the new leaders of the union he headed for almost 15 years was politically motivated and began after he appeared alongside Premier Doug Ford in support of the government’s move to boost the minimum wage.

The lawsuit “culminates a long campaign by Mr. Thomas’ political rivals … to demean, politically destroy, and cause irreparable emotional and reputational harm to him and his associates. It has no basis in reality, and is entirely manufactured.”

Thomas has launched a $5.5 million counterclaim.

OPSEU has launched a second, $24 million lawsuit that includes further allegations against Almeida and Gabay in relation to at least 15 individuals or businesses they had undeclared ties to, accusing them of payments for bogus or unfinished work as well as kickbacks.

Those allegations have also not been proven in court.