TORONTO, Aug 16 (Reuters) - Royal Bank of Canada ( RY )

filed a countersuit against ousted CFO Nadine Ahn on Friday,

detailing findings of its internal investigation into her

alleged intimate relationship with a subordinate, and accusing

her of breaching its code of conduct.

Ahn last week sued RBC for wrongful termination and alleged

that "gender-based stereotyping" was a factor in her dismissal.

She has sued RBC for nearly C$50 million.

In April, RBC, Canada's biggest bank, said it had terminated

Ahn after its investigation found she was in an undisclosed

close personal relationship with another executive, Ken Mason,

that led to his preferential treatment including promotions and

compensation increases.

Mason has also sued the bank for about C$20 million for

wrongful termination and he has denied any close personal

relationship with Ahn.

In its statement of defence and counterclaim filed with the

Ontario Court of Justice, RBC said it received an anonymous

whistle-blower complaint that Ahn and Mason were engaged in an

intimate relationship.

RBC said it reviewed electronic communications maintained on

its systems and found through its investigation that Ahn and

Mason regularly used personal and work devices to communicate.

RBC's court filing detailed Ahn and Mason's relationship

starting in 2013 or earlier highlighting their dates, poems

written by Mason, intimate email exchanges and what the bank

said was code they used to describe meeting for drinks.

RBC in its response said Ahn should repay RBC about C$3.3

million for payments related to its performance-based deferred

share unit program, short-term incentive program and gains on

the exercise of RBC stock options.

RBC said Ahn's intervention led to Mason receiving total

compensation increases amounting to 58% over two fiscal years

starting in 2021, and that she made the decision to promote

Mason as vice president and head of capital and term funding in

2023.

Lawyers for Ahn, 53, and Mason, 57, did not immediately

respond to a request for comment on the countersuit.

In her wrongful termination lawsuit, Ahn said the bank's

allegations are "patently false" and her successes, career and

reputation were destroyed in an instant by the bank.

A spokesperson for RBC said it had been disappointed to

learn the allegations were true.

"Contrary to the statements of claim from Ahn and Mason, the

investigation showed there was an undisclosed close personal

relationship, and that Ahn misused her authority as CFO to

directly benefit Mason," the spokesperson said.