Ten people, some formerly associated with the Toronto Transit Commission (TTC), are facing criminal charges for their alleged involvement in a benefits fraud scheme.
Currently, 150 employees have been axed, retired, or resigned to avoid dismissal due to their connection to the fraud, it has been reported. Of the 10 facing charges, nine are former TTC employees, while one remains an employee on medical leave.
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The TTC launched an investigation in 2014 following a tip to its Integrity Line that claimed receipts were being given to employees by healthcare products and service provider Healthy Fit. Allegedly, claim reimbursements were being made but no products or services were obtained by the employees; receipt amounts were also allegedly and suspiciously inflated. It was also claimed that Healthy Fit and the employee making the fraudulent claims would share the money paid out by
Manulife, TTC’s insurer at that time.
Investigators from TTC later informed Manulife and the police of its findings. Then in July 2015, criminal charges were laid against Healthy Fit’s owner. TTC’s benefits provider changed to Green Shield early this year following a public procurement process.
A statement from the company said that TTC’s investigators will continue to interview employees as part of its investigation, in addition to the police’s own investigation. Should evidence show that an employee’s benefits plan was billed “inappropriately,” that employee could face dismissal, the company warned.
TTC said that while it has insurance to protect itself against financial loss due to benefits fraud, it plans to seek restitution from those employees who have made improper claims against the company’s benefits plan.
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TTC employees fired in relation to alleged insurance fraud scheme
Insurance scam costs Toronto agency $4 million
