A former Nova Scotia health-care CEO convicted of fraud is out of jail again.
Tracy Kitch, the former CEO of the IWK Health Centre, was sentenced on Feb. 4 to nine months in jail for defrauding the children’s hospital of more than $30,000 during her time in charge.
On Monday, a judge approved her bail request in an appeals court. Kitch arrived in handcuffs and was escorted by sheriffs into a Halifax courtroom, but was on her way out minutes later.
“She met the statutory criteria for release. Statutory criteria for release is the appeal isn’t frivolous. She’ll surrender herself into custody and there aren’t any public safety concerns in releasing her,” said Crown lawyer Cory Roberts.
Kitch’s first appeal hearing was Feb 5 — one day after her sentencing — but was adjourned as the Crown said it needed more time.
Roberts said Kitch’s lack of criminal history and previous adherence to conditions played a factor in her release.
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“She’s surrendering her passport, which is to remain in the country and that satisfies us that she’ll surrender into custody and any residual concerns we have about public confidence in her release,” he said.
Kitch’s next court date for her appeal hearing is Sept. 14 — seven months from now.
Dalhousie University law professor, Wayne MacKay, says lengthy appeal processes tend to be more common in white collar cases.
“With most things with the law, it’s expensive to proceed and more frequently clients who are white collar clients are more likely to have the resources to engage in an appeal where people with fewer resources would not,” he said.
Kitch’s appeal argues that the trial judge erred in law by concluding that no one employed at a public institution is permitted to use public funds for personal use with no exceptions and that the judge failed to consider some evidence.
Found guilty twice
Kitch began her role as CEO in 2014 with a starting salary of $280,000. She resigned in 2017 after an independent review of the hospital’s credit card transactions and claims identified $47,273 of potentially personal expenses, of which $25,009 had been reimbursed.
Those personal expenses included air fare tickets, flight passes, meals, hotel rooms, mobile data overages, and iTunes charges.
“Hotel costs include a hotel stay by a family member of the CEO during a visit to Halifax, as well as hotel charges related to a personal trip to the U.S. that were charged to the corporate credit card,” the report found.
Kitch was first charged in 2018 and subsequently convicted of fraud in February 2022.
That decision was overturned by the Nova Scotia Court of Appeal before a new trial began in 2024, where she was convicted again.
Judge Ronda van der Hoek said during sentencing on Feb. 4 that Kitch was motivated by “greed and a sense of entitlement” and betrayed the public with her actions.
— with a file from The Canadian Press
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