Homeless shelter director removed by court order after failing to ‘discharge his duties honestly’

The executive director of a Saskatoon homeless shelter was removed from his post by a December court order after he was found to be using the charity’s funds for his own benefit.

According to court documents that were previously sealed by a publication ban, Don Windels — executive director of Lighthouse Supported Living in Saskatoon — used $60,000 of the charity’s funds to purchase a home for his daughter.

While Windels viewed the transaction as a loan, the judgment stated no loan was entered on the Lighthouse’s books, and the house was instead treated as a capital asset despite Windels having exclusive possession of the property.

The documents and their contents can now be published after an application by several media organizations.

“The Lighthouse expended $60,000 of its own money for a transaction that was solely to benefit for Mr. Windels,” Justice David Gerecke wrote in his decision. “For nearly four years the Lighthouse did not have those funds available for programming or capital acquisitions, and it also bore all the carrying costs concerning the Walmer House.”

The house increased in value to $230,000 by the end of 2020, when it was officially sold to Don and Bonnie Windels for $60,000, according to the judgment.

“Mr. Windels failed at all times to exercise his powers and discharge his duties honestly and in good faith with a view to the best interests of the corporation,” Gerecke wrote.

Gerecke also noted there was improper reporting of the transactions around the house, which he said was also due to Windels’ improper behaviour.

“Mr. Windels either caused or knowingly permitted the Lighthouse to breach the ‘foundational’ requirement of providing complete and accurate financial reporting,” he wrote.

Gerecke ordered that Windels be immediately removed from the boards and executive director positions at both the Lighthouse and Blue Mountain Adventure Park, a Lighthouse-owned park near North Battleford.

The judge also ordered significant amendments to the Lighthouse’s organizational bylaws, including changes barring directors from serving for more than 10 consecutive years, or more than 10 out of any 12 years, and barring any employees from election as directors.

Previous financial statements were ordered to be updated to accurately reflect the transactions around the house, and the board will be required to take a one-day training course on fundamentals of corporate governance.

Gerecke noted the improper behaviour had a negative impact on the shelter and its programming, which is meant to help the most vulnerable in our society.

According to Gerecke, Windels’ actions showed he “lost sight of what really matters.”