The Toronto Transit Commission (TTC) announced yesterday that it has laid off 73 of its employees in connection to an ongoing investigation into a purported insurance fraud scheme.
Investigations on the fraud matter began in 2015 following tips that were submitted through the TTC’s whistleblower program. Toronto’s auditor general Beverly Romeo-Beehler said last year that around 600 employees were being investigated for involvement in the scheme.
Learn more about employee dishonesty insurance here.
The allegations are focused on local orthotics store Healthy Fit; authorities had charged the store owner and two employees in 2015, claiming that they pocketed more than $4 million from
Manulife Financial by making false benefit claims through the TTC benefits program.
“Healthy Fit and the employee making the improper or fraudulent claim would then share the money paid out by the TTC’s insurer at the time,” a statement from the TTC said.
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
The statement noted that the authorities have not charged any TTC employees so far, but the police are still looking into the scheme, as are investigators with the TTC conducting an internal inquiry.
The Toronto Star reported that the TTC saw a $5 million reduction in benefits claims from the year before. An earlier statement from the public transport agency said that the reduction was a reflection of “continued success” in addressing the supposed fraud.
TTC had changed benefits providers earlier this year from Manulife to Green Shield after a public procurement process.
Related stories:
Fraud is easy in the digital age: Fintech VP
Insurance companies top target for fraud: Report
