The Saskatchewan Indian Gaming Authority has won a legal victory in its bid to sue a former director of the corporation.

Saskatoon lawyer Bob Kennedy says an application by his client Shelly Bear to get the lawsuit against her dropped has failed.

He explains they launched the application in July, trying to convince a judge SIGA has no evidence Bear was involved in fraudulent activities.

The corporation is trying to recoup losses of $1.2 million.

One man has already pleaded guilty to fraud.

Alain Germain apparently organized a scheme involving casino ATM’s where he was able to direct money towards himself.

He has since been found guilty by a judge and ordered to repay close to $2 million to the corporation.

Kennedy says SIGA is arguing through a statement of claim that a contract exists between it and Bear with respect to the operation of ATM machines.

However, he says no such contract exists — and just because Bear was a director at SIGA doesn’t mean she would automatically know what Germain was doing.

Kennedy says Bear is still working in her position as an assistant to acting FSIN chief Morley Watson, and may renew her effort to have the lawsuit dismissed in the new year.