Rubis Savannah Sues Former Employee, Dale Allen, For $343K. Lawsuit Alleges That Allen Misappropriated Funds & Failed To Deposit Gas Station Proceeds In Rubis Savannah’s Bank Account.
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By Alric Lindsay
According to a claim stamped by the Grand Court on September 19, 2024, Nixon Enterprises Ltd. (trading as Rubis Savannah) is suing its former employee, Dale Allen, for misappropriating bank deposits of CI $245,456.64. Additionally, Rubis Savannah is asking Allen to repay CI$97,854.48, which he allegedly took from sums owed by Rubis Savannah to Caribbean Utilities Company in connection with Rubis Savannah acting as a bill payment location for CUC.
Background
Based on the claim, Allen was employed by Rubis Savannah from August 1, 2017, to March 20, 2023. Allen was accepted as a staff member in 2017 on the terms of a Release on Temporary License program operated by Her Majesty’s Cayman Islands Prison Service (at that time, Allen was serving a period of incarceration at Her Majesty’s Prison at Northward).
Allen was described in the claim as “diligent in his duties,” including “preparing the daily cash received from the service station, balancing the register, carefully counting cash received, recording the cash transaction accurately in a ledger and preparing the cash for bank deposit.” In addition, “Any cash not deposited to the bank on the same day it was received was to be stored in a safe located in the vicinity of the checkout counter of the service station.”
When Rubis Savannah was approved as a remote payment location for CUC, Allen handled the cash received from members of the public for payments to CUC.
Discovery of misappropriated funds
In the ordinary course of operations, two Rubis Savannah employees went on vacation, and one of the directors of Rubis Savannah assumed responsibility for preparing cash deposits, which Allen usually did.
According to the claim, Rubis Savannah “noticed irregularities with the cash amounts deposited to the bank and the sums actually collected from the business that should have been deposited.”
Allen reportedly told Rubis Savannah that he had deposited all the money, but the bank made an error. Upon checking, Rubis Savannah did not discover any errors.
In the circumstances, Rubis Savannah “began an audit of cash sums received at the service station beginning from July 2020,” at which time it was revealed that the following cash deposits could not be accounted for by Allen:
When confronted with the findings of an internal audit, Allen reportedly “admitted that he had misappropriated the sums,” totalling $245,456.64 Cayman Islands Dollars.
Allen was fired following his reported admissions.
Rubis Savannah later “received correspondence from the Caribbean Utilities Company Ltd on March 20, 2023 which complained that payments due to that company in the sum of $97,854.48 Cayman Islands Dollars were not paid over.”
Rubis Savannah alleges that Allen is also responsible for this shortfall owed to CUC.
Allen offers payment for misappropriated funds
To repay Rubis Savannah, Allen reportedly offered Rubis Savannah his interest in property registered at Savannah Block 28B Parcel 115. The property allegedly has four rental units from which Allen can obtain income.
Based on the claim, Allen “failed or neglected to act on his assurances to convey his interest in the aforementioned property” to Rubis Savannah “or to make any payments against the sums he misappropriated.”
Rubis Savannah is now asking the Court to award the following in its favour:
1. The Principal Sum of CI$343,311.12
2. Pre and post judgment interest from July 4, 2020 at the statutory rate of 2.375% per annum until the debt is paid.
3. Costs
4. Such further and other relief as the Honourable Court deems fit.
