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Royal Bank of Canada<\/a> said it has proof that its former chief financial officer engaged in an intimate relationship with a colleague that she failed to disclose, citing exchanges between the two over text messages and emails.\u00a0<\/p>\n Canada\u2019s biggest lender filed a statement of defense and counterclaim on Friday in the wrongful dismissal lawsuit\u00a0filed earlier this month<\/a>\u00a0by Nadine Ahn, the executive it fired in April after 25 years at the bank.\u00a0<\/p>\n The legal filing said Ahn began a close personal relationship with a colleague, Ken Mason \u2014 an executive in the bank\u2019s corporate treasury group \u2014 as early as 2013 and that it continued until the time of her departure.\u00a0<\/p>\n The document offers a remarkably detailed look at how the bank alleges the relationship played out over more than a decade. It includes descriptions of how the two bankers frequently met outside work for cocktails, celebrated anniversaries, swapped romantic poetry, and called each other by pet names \u2014 \u201cPrickly Pear\u201d for Ahn and \u201cKD\u201d for Mason. \u00a0<\/p>\n Their text messages \u201cfantasized about a life together, such as reading in bed together,\u201d RBC\u2019s court filing states.\u00a0<\/p>\n \u201cMs. Ahn forwarded romantic poetry to Mr. Mason, expressing that she had fallen in love with Mr. Mason when she first saw him,\u201d according to the filing. \u201cMs. Ahn and Mr. Mason continued to regularly see each other outside of the office during this time period, arranging a lunch on August 18, 2017 to celebrate their \u2018fourth anniversary.\u2019\u201d<\/p>\n The close relationship continued after she was promoted to CFO in 2021, according to the documents. RBC alleges that Ahn used her position within the company to orchestrate promotions and pay raises for Mason, an endeavor it says Mason referred to as \u201cProject Ken\u201d in a document he drew up. She also shared confidential information with Mason, the bank claims, such as a draft of a speech to be given by Chief Executive Officer Dave McKay. \u00a0<\/p>\n Read More:\u00a0RBC\u2019s Ex-CFO Says She Had Shot at CEO Job Before Bank Fired Her<\/a><\/p>\n The filing states that RBC doesn\u2019t have access to their messages, \u201cexcept to the extent that Ms. Ahn and Mr. Mason copied personal communications to RBC systems.\u201d<\/p>\n Lawyers for Mason and Ahn didn\u2019t reply to messages seeking comment. Ahn said in her lawsuit that she and Mason were friends but denied that they were romantic partners. Mason, who filed a separate wrongful dismissal lawsuit against RBC, also denied a romantic relationship and said the bank would have treated them differently if they had both been men.\u00a0<\/p>\n The bank cites \u201cintimate communications\u201d exchanged between the two via text message. As one example, it states, \u201cOn March 11, 2019, Ms. Ahn messaged Mr. Mason to say, \u2018I love you.\u2019 Mr. Mason responded 15 seconds later, \u2018I love you too.\u2019\u201d<\/p>\n The two allegedly used calendar invites to schedule \u201cliquidity meetings,\u201d which the bank said was code for going for cocktails. At one such meeting, the two scribbled notes about their drink orders and other topics such as \u201cconcert, night out, winery\u201d on a coaster from Canoe, an upscale restaurant in Toronto\u2019s financial district. Mason had the coaster encased in plexiglass and kept it in his office, RBC claims. \u00a0<\/p>\n The bank said it began investigating in March after an anonymous whistleblower alleged that Ahn and Mason had been seen \u201chugging and kissing and exiting the elevators\u201d at the Fairmont Royal York, a hotel that\u2019s right beside RBC\u2019s head office.\u00a0<\/p>\n Bank officials \u201cimmediately commenced a thorough investigation conducted by external legal counsel,\u201d RBC spokesperson Gillian McArdle said in an emailed statement on Friday. \u201cWe were disappointed to learn the allegations were true.\u201d<\/p>\n The Globe and Mail newspaper earlier reported on RBC\u2019s court filing.<\/p>\n Ahn\u2019s lawsuit complained about the way Royal Bank handled the investigation, the speed with which she was fired after being confronted with the allegations on April 5, and the damage to her reputation when the bank put out a press release that same day.\u00a0<\/p>\n \u201cContrary to the statements of claim from Ms. Ahn and Mr. Mason, the investigation showed there was an undisclosed close personal relationship, and that Ms. Ahn misused her authority as CFO to directly benefit Mr. Mason,\u201d McArdle said. \u201cAs she was a Named Executive Officer, we had an obligation to disclose.\u201d\u00a0<\/p>\n Ahn\u2019s lawsuit is seeking almost C$50 million ($37 million) in pay and damages while Mason is suing Royal Bank for more than C$20 million in pay and damages.\u00a0<\/p>\n In its counterclaim against Ahn, RBC is seeking about C$4.5 million for \u201cexcess compensation\u201d paid to Mason and to claw back bonuses paid to Ahn, plus other damages and costs.<\/p>\n RBC\u2019s filing states that when another employee raised concerns about Mason\u2019s pay, Ahn terminated that person\u2019s employment without cause. The bank said that former employee \u201chas demanded compensation from RBC for bad faith termination of his employment, because of Ms. Ahn\u2019s conduct.\u201d\u00a0<\/p>\n<\/div>\n\n\u2018I Love You Too\u2019<\/h3>\n
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