TORONTO -- A city councillor for Richmond Hill, Ont. has been charged in connection with a fraud investigation.

According to York Regional Police, an investigation into “the fraudulent use of funds connected with a city councillor’s employment” began back in July.

Police allege the councillor hired an additional staff member and then arranged for them to give a portion of their pay to the councillor’s spouse.

“It is believed that more than $21,000 was paid to the councillor’s spouse from August 2019 to May 2020,” police said in a news release issued Tuesday afternoon.

Richmond Hill resident Karen Cilevitz, 63 has been charged with fraud over $5,000 and breach of trust by a public officer in connection with the incident. Cilevitz was first elected as a city councillor in Richmond Hill in 2014 and was re-elected for a second term in 2018.

Mayor Dave Barrow confirmed the charges in a statement and said it was "important to allow the legal system to determine the outcome in this case."

"City officials are cooperating with police. Under the Municipal Act, the councillor is permitted to retain her seat at this time. I want to reaffirm to residents that City Council is committed to serving the public good and we will continue to stay focused on helping our community emerge strong from the pandemic," he said.

"As this is an ongoing police investigation, the City will be making no further comment at this time."

 

A second suspect identified as Derek Christie, 59, has also been charged with fraud over $5,000 and possession of proceeds of a crime in connection with the investigation.

Police say the investigation is ongoing and anyone with information is being asked to contact York Regional Police’s Financial Crimes Unit at 1-866-876-5423 ext. 6612 or reach out to Crime Stoppers anonymously.