What was the outcome?
As it happens, this wasn’t the only time the Phi Centre and Greenberg fell victim to occupational fraud. Phi’s former president, Penny Mancuso, was also found to have embezzled funds—$5.2 million, in her case—from the organization between 2014 and 2017.
Phi Centre’s financial director, Michel Bérubé, had alerted Greenberg to irregularities in the accounting records, including an entry unveiling that Mancuso had spent $500,000 on clothes, bankrolled by Greenberg's expense account. Mancuso was subsequently fired, and Greenberg sued her for misappropriation of funds for a total of $5 million. The matter was settled out of court in June 2019.
This eye-opening discovery prompted Greenberg to take a closer look at her expense accounts. She hired private investigator to follow the money trail, which eventually led them to suspect Testa.
In July 2017, Greenberg fired Testa and enlisted forensic accountants to dig deeper into the allegations. The investigation found that between January 2016 and July 2017, Testa had misappropriated $10 million from Greenberg's accounts and $5 million from the Phi Centre’s corporate accounts.
In a judgment rendered on March 8, 2021, Testa was sentenced to pay $12.4 million in damages. Another lawsuit related to Testa’s fraudulent activity was previously settled in 2018 for an additional $7.5 million.