The Toronto Transit Commission has filed a $5 million statement of claim against Manulife Financial as part of an ongoing investigation into an alleged benefits fraud scheme.
The filing in the Ontario Superior Court of Justice requests a response from Manulife within 3 weeks and alleges that Manulife Financial did not have appropriate fraud management controls in place nor were there systems in place to detect and analyze unusual trends or patterns that might indicate fraud or abuse.
In 2014, the TTC began an investigation following a tip to its 'Integrity Line' that alleged receipts were being provided to employees by Healthy Fit, a health care products and service provider, where claim reimbursements were being made, but where no product or service (orthotics, compression stockings and sleeves) was obtained or where receipt amounts were inflated. It was also alleged that Healthy Fit and the employee making improper claims would then share the money paid out by Manulife Financial.
The proprietor of Health Fit, Adam Smith, pleaded guilty to two counts of fraud over $5,000 and was sentenced last week to two years in jail.
So far, 170 TTC employees have been dismissed, resigned or retired to avoid dismissal; and 10 are facing criminal charges.
The allegations made in the statement of claim
against Manulife have not been proven and no comment has been made by the firm.
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