A legal complaint filed in the Supreme Court of British Columbia alleges that three employees at a Denny’s restaurant in Kamloops embezzled over $500,000 from the establishment between 2023 and 2025. The Northland Properties Corporation, the company operating Denny’s in Canada, uncovered the unauthorized transactions during a recent audit, with $11,000 traced to a fraudulent manipulation of the restaurant’s electronic tip system involving two staff members. A third employee is accused of instigating the scheme by reportedly misappropriating more than $494,000 previously.
The lawsuit, filed on December 16, revealed that multiple unauthorized digital transfers occurred from the electronic tip system to an account linked to one of the defendants. The accused employees allegedly collaborated in the illicit scheme, with one individual using access codes to transfer funds to the other party, who would then redirect a portion back, enriching themselves in the process.
The plaintiff asserts that the defendants violated their obligations of honesty, loyalty, confidentiality, and lawful use of company resources, leading to unjust enrichment through the misappropriation of funds. Northland seeks damages for theft, conversion, civil fraud, breach of employment duties, breach of contract, and breach of fiduciary responsibilities, including the recovery of the allegedly stolen funds.
Kamloops RCMP have confirmed an active investigation into the accusations, while the identities of the defendants have not been disclosed pending further legal proceedings. No responses to the civil claim have been submitted, and the allegations remain unproven in court. An ex-employee unrelated to the case mentioned that cash tips were directly given to servers, while credit card tips were processed through an online system, ensuring servers received the correct amount owed to them.
