Three employees at a Denny’s location in Kamloops are facing a civil suit in the Supreme Court of British Columbia for allegedly embezzling over $500,000 from the restaurant chain between 2023 and 2025. The Northland Properties Corporation, which operates Denny’s in Canada, uncovered the scheme during a recent audit that revealed unauthorized transfers totaling $11,000 from the restaurant’s electronic tip system. The company claims that two employees collaborated to siphon off funds, while a third employee had previously misappropriated more than $494,000.
The lawsuit, filed on December 16, alleges that the defendants manipulated the digital tip distribution platform called Tips Today to divert funds to their accounts illicitly. Kamloops RCMP have initiated an investigation into the matter.
The claim does not provide detailed information on how the scheme was executed but asserts that the defendants violated their duty of honesty, fidelity, and confidentiality. Northland is seeking damages for theft, conversion, civil fraud, breach of employment duties, breach of contract, and breach of fiduciary obligations. The relief sought includes the recovery of the allegedly stolen funds.
No names of the accused employees have been disclosed by CBC News pending comments from the defendants or their legal representatives. None of the allegations have been proven in court, and no response to the civil claim has been submitted.