Fiddleheads co-op alleges former employee embezzled over $229,000
New London — Fiddleheads Natural Foods Cooperative has filed suit against a former employee, alleging he embezzled more than $220,000 from the co-op over nearly four years.
The target of the suit is Robert Tompkins Jr., a trusted employee of the 13 Broad St. grocery store who was working as a systems administrator and had access to the co-op’s point-of-sale systems and security system.
From February 2017 through September 2020, the lawsuit alleges Tompkins faked refund transactions and refunded his own credit cards. The losses are estimated at $229,906.34.
In an email to some of the co-op’s owner/members on Wednesday, Fiddleheads board President Danny Spurr said a 2017 audit and subsequent financial reviews by the co-op’s certified public accountant had not identified any issues. A credit card processing company for the co-op notified Fiddleheads in September that there was something suspicious regarding a transaction linked to Tompkins, according to an affidavit filed in the lawsuit.
“Over the past few weeks, we were able to identify the employee associated with these anomalies, the period of time involved, and the resulting loss of revenue,” Spurr said in his message. Management, he said, had “isolated the method behind the losses and we are now auditing to ensure there are no other vulnerabilities.”
In an interview on Tuesday, Spurr said the discovery was a disappointment for co-op employees and Tompkins has since been “let go.” He said police are investigating.
While the losses were a blow to the co-op, Spurr said the business overall remains in good financial shape. “The losses will not impact the long term operation of this valued community resource,” he said.
In his communication with co-op members, Spurr said the co-op has insurance in place and is filing appropriate claims to cover the losses. The suit, he said, is an attempt to “be made whole.”
“Your (co-op) is well managed by a group of dedicated staff,” Spurr said. “Fiddleheads is on sound financial footing, anticipating a meaningful profit for the 2020 fiscal year.”
Fiddleheads filed suit in November and a remote hearing on the matter had been scheduled for mid-December but later continued to Jan. 4 because Tompkins had not yet hired an attorney, court records show. Attorney Jeremiah Donovan filed a court appearance on Tompkins’ behalf on Dec. 22. Tompkins and Donovan were not immediately available for comment.
Fiddleheads is represented in the suit by the New London law firm Conway, Londregan, Sheehan & Monaco. Attorneys for the firm could not be reached for comment.
“Thank you for your continued support of Fiddleheads Food Co-op,” Spurr said in his message to members. “I ask that you keep our community in mind as we process this loss of trust, and move forward with stronger systems in place to prevent future harm.”
Comment threads are monitored for 48 hours after publication and then closed.
