Toronto police have arrested three people over an alleged $4-million benefits fraud scheme directed against the Toronto Transit Commission (TTC) and Manulife.
It’s alleged that receipts were provided to individuals by Healthy Fit, a Toronto orthotics business, for claim reimbursement where no product or service was obtained or where receipt amounts were inflated.
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It’s also alleged that the healthcare provider and the person making the claim would then share the money paid out by Manulife, the TTC’s insurer.
“When the TTC received information related to this alleged scheme, it immediately advised Manulife,” says TTC CEO Andy Byford. “They, in turn, launched their own investigation, which, ultimately, led to the involvement of Toronto Police.”
In January, the police’s financial crimes unit received information regarding the alleged scam. Last week, the owner of Healthy Fit and two employees were arrested.
While there isn’t currently any evidence linking TTC employees or their dependents to any crime, the organization has launched an internal investigation. The police investigation also continues.
“If, through these investigations, an employee is found to have been party to this alleged fraud they will face serious consequences, up to and including criminal charges and/or termination of employment,” he says.
Byford is asking for an internal review of its benefits program, including options like requiring pre-approved or preferred suppliers for the unregulated medical device industry.
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