Settlement reached with former Surrey school employees

Robert and Barbara Chadwick pay $78,000 to district and drop counter claims.

The Surrey School District has reached an out-of-court settlement with two former employees accused of financial fraud that allegedly put thousands of dollars into their own pockets.

The board of education agreed to dismiss its civil lawsuit against former associate superintendent Robert (Bob) Chadwick and his administrative assistant Barbara Chadwick (nee Moore) in exchange for the couple paying $78,000 to the district.

The Chadwicks, who left their jobs suddenly and under mysterious circumstances in 2006, have also agreed to drop their constructive dismissal lawsuit against the board as well as their counter lawsuits.

“The board is satisfied this settlement is in the best interest of the board and taxpayers,” said district spokesperson Doug Strachan on Monday.

The district filed suit against the Chadwicks in 2009, alleging the two were involved in large scale fraud and kickback schemes involving hundreds of thousands of dollars. Both denied diverting the money and called the scenario a “witch hunt” by the district.

The Chadwicks are still facing a criminal lawsuit, with both charged with theft over $5,000 and fraud over $5,000. Robert was also charged with breach of trust by a public officer.