A B.C. cannabis store employee who was tricked into depositing more than $12,000 of his employer’s cash into Bitcoin ATMs has been ordered to repay most of the money, even though a judge accepted that he believed he was following legitimate instructions.
The case highlights a difficult distinction for employees: being an innocent victim of fraud does not necessarily mean you are protected from financial liability when the scam involves your employer’s property.
In McMillan v. 1184962 B.C. Ltd. d.b.a. Prime Cannabis, 2026 BCPC 291, the Provincial Court of British Columbia ordered Trevor McMillan to pay $12,015.64, after crediting $400 he had already paid toward the loss. The judgment also includes the business’s filing and service fees, plus prejudgment interest.
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How a phone scam cost a B.C. worker $12,415
McMillan was working as a budtender at a Prime Cannabis store in West Kelowna on Jan. 1, 2025, when he received a phone call from someone claiming to be the building manager.
The caller told him the store’s business licence had expired and that officials could arrive to issue fines. Another caller impersonated the store manager, reinforcing the impression that the instructions were legitimate.
McMillan was directed to remove cash from the store safe and deposit it into Bitcoin ATMs to pay for an urgent licence renewal. He transferred $12,415.64 in total. The money was lost, and his employment was terminated four days later.
The judge accepted that McMillan honestly believed he was acting on instructions from his employer. Evidence supporting that conclusion included his handling the cash openly at the store, his frantic reaction when he realized something was wrong and his cooperation with the manager and police.
The judge acknowledged inconsistencies in parts of McMillan’s testimony but found that other evidence supported his account. The decision also noted that sophisticated financial frauds exploit victims’ trust and vulnerability.
That did not, however, settle the question of who was responsible for the missing money.
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Why the employee was still liable
The employer sued McMillan for conversion, a tort involving the intentional use or control of someone else’s property in a way that interferes with their right to possess it.
Crucially, conversion is a strict-liability tort. The judge found that McMillan deliberately removed and transferred cash belonging to his employer without authorization. His honest belief that he was following legitimate instructions did not provide a legal defence.
The judge distinguished the civil claim from a criminal prosecution. Had McMillan been charged with theft, the judge said the evidence would not have established criminal intent beyond a reasonable doubt. But the civil claim concerned conversion, which did not require proof that McMillan intended to steal the money or knew his actions were unauthorized.
The judgment was for $12,015.64 after the court credited the $100 bill McMillan returned and his final paycheque, which he had surrendered to the employer. The business was also awarded its filing and service fees and prejudgment interest dating from Jan. 2, 2025.
Can your employer make you pay for a workplace scam?
The ruling doesn’t mean employees automatically have to reimburse their employers whenever they fall for a scam. The outcome depends on the circumstances, the property involved and the legal claim being made.
There’s also an important distinction between an employer pursuing a civil claim and simply deducting money from an employee’s wages.
In B.C., section 21 of the Employment Standards Act generally prohibits employers from requiring employees to pay business costs or making unauthorized deductions from their wages. That protection doesn’t necessarily prevent an employer from bringing a separate civil claim, as the Prime Cannabis case demonstrates.
Employees should not assume that an employer can deduct alleged losses from their pay simply because a scam occurred at work. If an employer demands repayment or withholds wages, workers can contact the provincial Employment Standards Branch or seek legal advice.
How to protect yourself from workplace payment scams
Scammers often create urgency, impersonate managers or other trusted contacts and discourage employees from checking instructions with anyone else. Requests to move cash, purchase gift cards or transfer cryptocurrency should be treated as serious red flags.
The RCMP’s guidance on business email compromise recommends independently verifying unusual payment requests rather than relying on the contact details or instructions supplied in a suspicious message.
For employees, a practical rule is to pause before moving money or sharing financial information. Confirm the request directly with a manager using a known phone number or established internal channel. Never use a number provided by the person making the request as your only means of verification.
If you have already transferred money, notify your employer, financial institution and police as soon as possible. You can also report the incident to the Canadian Anti-Fraud Centre.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.
