An Innu company has launched a $1-million lawsuit against former financial officer Edgar Branton, whose spending decisions were highlighted in a recently released financial review.

The Innu Development Limited Partnership (IDLP), formerly known as IED Enterprises Inc., has filed a counterclaim against Branton in the Supreme Court of Newfoundland and Labrador.

Branton had originally filed a lawsuit against IDLP two years ago when he was fired, amid concerns about how much money he was being paid.

Court documents say that Branton had received $188,203.50 in unauthorized payments.

As well, the documents say Branton made an additional payment of $118,842 to himself through Ueushuf Fisheries, a subsidiary of IED. An additional payment of $1,100 had been made through IDLP Properties.

Branton had made the first legal volley, when he sued for lost wages and mental distress.

Unauthorized spending 

He later dropped the claim, but the IDLP is proceeding with its counterclaim, which also alleges that Branton breached "employment obligations" by enabling former chief executive officer Paul Rich to receive funds totalling $700,000, all without approval of the company's board of directors.

Rich was later fired as CEO.

The counterclaim seeks special damages totalling $1,014,145.80, as well as its legal costs.

An IDLP board member says the company has not gone to court in an attempt to recover money from Rich, but said that option is still under consideration.

Here is the text of Edgar Branton's original statement of claim, which has since been dropped.

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Meanwhile, here is the text of the IDLP counterclaim.

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The RCMP, meanwhile, is reviewing a financial analysis that the IDLP commissioned by John Noseworthy, Newfoundland and Labrador's former auditor general.

Noseworthy's review found that there was no documentation to support how Branton had been paid far more than the salary identified in an unsigned employment contract.

As well, he found that both Branton and Rich frequently charged restaurant bills to the IDLP.