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Lloyd Carr pleaded guilty to fraud in a case in which $634,000 was taken from the Alberta Alcohol and Drug Abuse Commission. ((CBC))

A former senior bureaucrat in Alberta's addiction treatment agency has been working as a mental health clinician in Manitoba, contrary to what an Edmonton judge was told at a sentencing hearing Monday.

Lloyd Carr, 46,  is to be sentenced Friday after pleading guilty in February to one count of fraud over $5,000 for diverting $634,000 from the tobacco reduction program at the Alberta Alcohol and Drug Abuse Commission. Carr, the former executive director of the program, said he did it to support a gambling habit.

During the sentencing hearing, the court was told Carr had been earning money as a house painter in Swan River, Man. 

However, CBC News has learned he was working with children as a mental health clinician in Flin Flon, Man., for the past year and a half.

The NOR-MAN Regional Health Authority in Manitoba didn't know about Carr's legal troubles until they heard about them through media reports.

"This matter was brought to our attention on Tuesday, April 13. We are currently conducting an investigation and until we have completed the investigation, we cannot comment further," said Corliss Patterson, a spokesperson for the NOR-MAN Regional Health Authority.  

Co-workers 'reeling'

CBC News contacted people who worked with Carr, who spoke on condition of anonymity. They said they were shocked about the revelations, calling Carr well liked and well respected. "We're all just reeling from this," one said.

Carr told them he had been working for 15 years as a health professional in Ontario — never mentioning that he had worked for the Alberta government until he was fired in 2006.

He also told them he has a bachelor's degree in social work from the University of Calgary. A pre-sentence report provided to the court Monday showed Carr graduated from high school in Toronto but has no post-secondary degree or diploma.

The co-workers also said Carr began telling them about health problems last fall, and later said he had intestinal cancer. He booked time off work on Monday, telling them it was for surgery in Winnipeg. His colleagues gave him a tearful farewell and prayed for him, they said. In fact, he was heading to Edmonton for his sentencing hearing.

Crown prosecutor Greg Lepp said he could neither confirm nor deny any of the new information.

"When there's a new development in the middle of a court case that's still a live issue before the court, our first obligation is to make sure that the court is the first audience that hears about anything relevant to the case."

"It will be up to the judge to find out what the next step is in this case," he said.

The Crown is asking for a prison sentence of three to five years. Carr's lawyer, Daryl Royer, has asked for a conditional sentence that would amount to house arrest.

Carr is scheduled to be sentenced Friday afternoon in Edmonton.