KAMLOOPS – Mounties in B.C. say they are investigating an alleged fraud perpetrated against a Denny’s restaurant by three former employees who are being sued by the restaurant’s operator for allegedly misappropriating more than $500,000 from an account for employee tips.
Cpl. Dana Napier, media relations officer for the Kamloops RCMP, said in a statement Tuesday that the file is under investigation, and couldn’t provide any further details.
Northland Properties Corp., the operator of the Denny’s, filed a lawsuit against the three former employees last month in B.C. Supreme Court.
The company’s claim was filed weeks after it allegedly discovered “multiple unauthorized digital transfers” from the restaurant’s tipping system to an employee’s account between Nov. 10 and Dec. 1, 2025.
The lawsuit says an audit found that more than $11,000 had ended up in one of the defendants’ accounts, who allegedly admitted to colluding with a former Denny’s supervisor to steal the money.
The civil claim says the former employee revealed that he’d been shown records that indicated the restaurant’s former manager, who resigned in November 2025, had “removed substantial funds” from the tipping system totalling nearly $495,000 between 2023 and 2025.
Northland’s lawsuit says it reported the alleged fraud to the Kamloops RCMP.
The lawsuit contains allegations that have not been tested or proven in court, and none of the defendants have filed a response to the claim, which seeks damages for theft, conversion, breach of contract and civil fraud.
The company claims the restaurant’s former manager resigned on Nov. 3, the same day he emailed a server who works at the Denny’s seeking “financial verification codes” to access the restaurant’s “Tips Today” digital system.
The lawsuit says the former manager texted the server five days later seeking more of the verification codes, and the server had “believed she was helping” him to make repayments.
The server, the lawsuit says, “did not fully understand how access to the tip-distribution platform operated.”
This report by The Canadian Press was first published Jan. 6, 2026.
