An Edmonton woman who tried to avoid getting caught for embezzling $530,000 from her employer by claiming she was sleeping with the boss was convicted yesterday.

Elaine Badry, 49, cried after being found guilty of fraud over $5,000 by Court of Queen's Bench Justice Darlene Acton, who rejected the office worker's testimony.

"I do not believe the evidence of the defence," said Acton. "I am convinced beyond a reasonable doubt of the guilt of the accused."

Badry was accused of stealing $530,000 from Duraguard Fence Ltd. from 2001 to 2007 when she worked for the company doing general office work, residential sales, customer service and processing debit transactions.

In an opening statement, Crown prosecutor Tamara Friessen said Badry used a machine that processes refunds to credit cards and debit cards to credit funds to herself or to other cards associated with her.

FOLLOWED INSTRUCTIONS

Badry testified she didn't steal the money and claimed she had been following the instructions of Duraguard owner Jay Champigny, who she alleged was using her to launder company money to avoid paying income tax.

Champigny denied Badry was giving him the money and testified he was "shocked" to learn of what she was doing.

Court heard there were 290 instances of Duraguard customer's paying for purchases with credit cards and then having unauthorized refunds issued.

However, the refunds were withdrawn from the company's account by Badry either through bank ATMs or at city casinos and the money was deposited in her bank account or various other accounts belonging to her daughter, her ex-husband and her boyfriend.

Despite the casino connection, Badry denied she was a gambler or that she has a gambling problem.

Court heard nobody knows where the money went to.

Acton ruled Badry's claim that Champigny was "siphoning" money from company coffers to avoid paying taxes made "no sense" and was "totally improbable."

USING CREATIVITY

Acton also noted that Badry became "creative" when she felt she was going to get caught as a result of Champigny's wife coming in to the office to check out the books.

Carolynne Champigny testified that the day after she discovered someone was stealing from her husband's company, and told him about it, she found a letter at work from Badry saying she was "sleeping with Jay."

Champigny said she "turned white" and "got really angry" and then realized Badry knew she would find out about the alleged thefts and had written the letter about the supposed affair in the hope that Champigny would get so upset that she would take the children and leave Jay.

After the conviction, Acton ordered a pre-sentence report and a sentencing hearing was set for March 12.

TONY.BLAIS@SUNMEDIA.CA