The former mayor of Penticton has been ordered to pay $100,000 for stealing more than $800,000 from the family liquor store business.

In a scathing judgment, BC Supreme Court Justice Gary Weatherill said that John Vassilakaki’s misconduct was reprehensible and that the former mayor had used his position at the family business to “steal” the company’s money before falsifying payroll records in an attempt to cover up what he’d done.

“(Vassilakaki) was the former mayor of Penticton. That position required him to exercise judgment and restraint. He would have known that he must not act corruptly,” Justice Weatherill said in a June 9 decision.

Justice Weatherill said Vassilakaki’s conduct lasted for 14 years and he took active steps to conceal it.

In ordering Vassilakaki to pay $100,000 punitive damages to his brother, Justice Weatherill said it was a way the court could show its “outrage” at the former mayor’s “egregious” conduct.

The judgment comes months after Vassilakaki was found to have stolen more than $800,000 from the family company to pay personal expenses, make loans to himself, as well as pay himself and his family unearned wages and excessive salaries.

Along with the punitive damages, Vassilakaki was also ordered to pay $137,067 in pre-judgment interest.

The case is one of several the 80-year-old former mayor has been involved in regarding family-owned businesses.

Three years ago, he was ordered to pay his brother Nick $14,000 in damages for physically assaulting him in 2020.

Vassilaki was Penticton mayor from 2018 to 2022 and sat on council from 2002 to 2014.

The current case involves the Last Call Liquor Mart, which was owned by Vassilaki, his brother Nick and other family members.

After being fired from the family business for taking the money, Vassilaki sued for unfair dismissal.

However, he admitted on the second day of the trial that the business had reason to dismiss him, but also argued that it had condoned what he’d done. Vassilaki accused his brother and nephew, Florio, of a “witch hunt.”

However, the Justice didn’t buy it.

“(Vassilaki’s) actions were found to be planned and deliberate to enrich himself and his family at (the company’s) expense to the tune of $814,681 over 14 years,” the Justice said.

Vassilaki was paying himself $84,000 a year to manage the liquor store, but rarely stocked shelves, worked the till, or answered the phone, and couldn’t use the computer. He spent most of his time at work in his office watching TV.

The decision said the former mayor was warned in 2020 that any pay increases or bonuses had to be approved by the board.

However, his misconduct continued.

“He did not seek approval from (the) board for post-warning pay increases, interest-free loans or personal expenses,” the Justice said. “To make matters worse, (Vassilaki) attempted to cover up his misappropriations. He refused to disclose information respecting payments he caused (the company) to make to himself, his wife, his son and daughter-in-law for services they had not performed. Payroll records were falsified. When (the) board and workplace investigator confronted him, he was untruthful and attempted to cover his tracks.”

In arguing against paying punitive damages, Vassilaki said he’d already suffered significant penalties, one being his career as Penticton’s mayor.

That’s not technically true. Vassilaki lost the election in 2022, coming in third by more than 1,300 votes behind the winner, Julius Bloomfield.

While the former mayor said he shouldn’t have to pay punitive damages, the Justice wasn’t swayed.

“Vassilaki’s tactics were designed to protect his misdeeds, self-interest and to the detriment of other family members. On balance, his high-handed misconduct, much of which he later acknowledged, easily meets the… threshold for an award of punitive damages,” Justice Weatherill said.

Ultimately, the Justice ordered Vassilaki to pay $100,000 punitive damages, $137,000 in interest and special costs calculated at 33.3% of the trial costs.

This is on top of the $814,000 he was ordered to pay in March.