Is employer responsible for the criminal fraud of an employee?

|Canadian Employment Law Today

Bank of Montreal v. Charlottetown (City), 2004 CarswellPEI 98, 2004 PESCTD 78 (P.E.I.T.D.)

Between February 1996 and March 2003 David Campbell, while working for the City of Charlottetown, fraudulently used the city’s bank accounts with the Royal Bank of Canada (RBC) to steal more than $468,000.

As part of the fraud Campbell deposited and cashed cheques at a branch of the Bank of Montreal (BMO). When his wrongdoing was identified, Campbell was dismissed. He was later convicted of fraud and theft, both criminal charges.