A Hamilton-based charity that supported Canadian first responders has ceased operations and filed a lawsuit accusing its former CEO and treasurer — a mother and daughter — of misappropriating donor funds. The claim alleges that tens of thousands were diverted to cover personal expenses, payroll deductions were not remitted to the CRA, and financial statements were falsified to conceal the missing money.

A charity created to support Canadian first responders and their families has shut down and launched legal action against its former leadership following allegations of significant financial misconduct. The Canadian Critical Incident Stress Foundation, formed to assist police, fire and paramedic personnel dealing with PTSD and bereaved families, has filed a lawsuit accusing its former CEO, Renee Jarvis, and former treasurer, Kelsey Pitt, of taking funds for their personal use.

According to the claim filed in Ontario Superior Court, the pair failed to remit payroll deductions to the Canada Revenue Agency, resulting in a tax debt of about ninety thousand dollars. The lawsuit alleges they then loaned themselves more than one hundred and fifty thousand dollars of the organization’s money, purportedly to address the outstanding liability. The filing also alleges that they concealed both the debt and the missing funds by submitting inaccurate financial statements to the board.

The claim states that Pitt stopped coming to work in April 2022 after the CRA initiated an audit, but remained on the payroll until February 2024. Jarvis was dismissed later that year. Both reportedly received salaries exceeding ninety thousand dollars annually. The charity’s newly installed board chair says a forensic audit is underway to determine whether additional money is unaccounted for.

Financial summaries filed with the CRA show that the charity consistently spent more on fundraising and administration than on programming, relying heavily on third-party fundraising firms. Over a five-year period, fundraising costs averaged more than half of the charity’s expenditures, well above the levels recommended by federal guidelines.

The organization’s flagship program, a bereavement camp for the families of first responders, held its final session this past summer before operations ceased. Some former participants are now working to establish a new charitable group to continue supporting affected families. Statements of defence have not yet been filed, and representatives for both Jarvis and Pitt declined to comment.