Former Penticton Mayor Ordered to Repay $815K After Misusing Family Business Funds

Former Penticton mayor John Vassilaki has been ordered by the B.C. Supreme Court to repay more than $815,000 after being found to have misappropriated funds from a family-run company.

The ruling also dismissed Vassilaki’s claim that he had been wrongfully dismissed from the business.

Family business dispute

The case centres on Vassilaki & Sons Investment Ltd. (VSI), a company that owns commercial property and operates Last Call Liquor Mart in Penticton.

Ownership of the company is shared among family members, including Vassilaki, his brother Nicholas Vassilakakis, and their children.

Vassilaki served as both a company director and manager of the liquor store, where he also employed close family members.

Findings of misconduct

The court found that Vassilaki improperly directed company funds for personal and family benefit.

According to the judgment, he was responsible for:

• $631,000 in excessive wages paid to himself and family members, including pay for hours not worked

• $108,500 in wages paid to himself between 2018 and 2021 while serving as mayor and not actively working at the business

• Over $10,000 paid to family members while they were on vacation

• $5,000 withdrawn to cover personal legal expenses

The total amount claimed by the company in its counterclaim was $814,681.99 — which the court ordered Vassilaki to repay in full.

Breach of fiduciary duty

In his ruling, Justice Kenneth Ball emphasized that Vassilaki failed in his legal obligations as a fiduciary.

“The plaintiff simply refused to obey his fiduciary responsibilities,” the judge wrote, noting that Vassilaki treated company funds as a personal financial backup.

Affidavits from employees also described limited involvement from Vassilaki in daily operations, alleging he avoided basic tasks and spent much of his time in the office watching television.

Broader legal history

This case is the latest in a series of disputes within the Vassilaki family.

In a previous incident tied to a family disagreement, Vassilaki was ordered to pay $14,000 in damages after being found liable for battery during a 2020 confrontation involving shared family property.

What happens next

The court has ordered that the repayment be made immediately, marking a significant legal and financial consequence for the former mayor.

The decision reinforces the strict expectations placed on individuals in positions of trust — particularly when managing shared or corporate assets.