Renee Patricia Merkel attempted to evade the attention of NanaimoNewsNOW after pleading guilty to a substantial and lengthy workplace payroll scam at Errington Cedar Products. (Ian Holmes/NanaimoNewsNOW)

By Ian Holmes

court beat

Parksville woman pleads guilty to defrauding $70K in workplace payroll scam

Oct 13, 2020 | 5:27 AM

NANAIMO — A former employee of an Errington sawmill awaits sentencing for inflating co-worker paycheques and then depositing funds into her own bank accounts.

Renee Patricia Merkel, 42, pleaded guilty to a charge of fraud over $5,000 during a recent appearance in BC Supreme Court in Nanaimo.

The crimes occurred between April 1, 2017 and March 11, 2019 at Errington Cedar Products, a family owned operation employing about 50 people.

Nearly 40 fraudulent transactions were unearthed in 2017 and 2018 involving direct deposits to Merkel totalling $70,340, according to an agreed statement of facts.

Fourteen employees in both years had their paycheques inflated by Merkel, who skimmed funds off the top. Merkel was trained to operate the company’s payroll system among shipping and receiving tasks she provided.

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Banking documents obtained by Oceanside RCMP confirmed overpayments from falsified employee hours were deposited into Merkel’s account and a joint account.

She was arrested on Aug. 1, 2019.

The affected employees faced increased tax liabilities, while Merkel burdened her employer with an additional $38,700 in benefits related expenses.

In total, Merkel’s actions cost Errington Cedar Products $109,000.

None of the money has been paid back.

The mill went bankrupt late in 2019, was closed for several months, then re-opened this past spring.

A pre-sentence report with a psychiatric component was ordered to shed more light on Merkel’s actions.

She will be sentenced at a later date when further context around her offending will be revealed by Crown Counsel and Merkel’s lawyer.

The Crown intends to drop a second charge against Merkel of theft over $5,000.

Court was told Merkel has at least one prior fraud conviction.

Sentences for fraud cases in Canada tend to widely vary based on circumstances of the offender and nature of crime.

The maximum punishment for fraud over $5,000 under the Criminal Code of Canada is 14-years in prison.

ian@nanaimonewsnow.com

On Twitter: @reporterholmes