10 Toronto transit workers charged with fraud in alleged $5M insurance scheme
The TTC says 150 employees have been fired, retired or resigned as a result of an investigation into benefits fraud
TORONTO—The Toronto Transit Commission says one current and nine former employees are facing criminal charges in connection with an alleged multimillion-dollar insurance scheme.
The TTC announced the charges July 20 as part of an ongoing investigation by the police and the public transit agency into false health benefit claims.
To date, the transit agency says 150 employees have been fired, retired or resigned to avoid dismissal as a result of the investigation, which started in 2014.
All 10 people charged face one count of fraud over $5,000. Of the 10, one is an employee on medical leave.
The allegations centre around Healthy Fit, a Toronto orthotics store, which allegedly provided some or no products that were invoiced to Manulife Financial, the TTC’s insurance provider at the time.
It’s alleged that Healthy Fit then shared the insurance payments with the workers involved in a $5-million scheme.
The TTC says it anticipates more employee dismissals as it continues its investigation.
“The TTC has insurance to protect itself against financial loss due to benefits fraud,” the transit agency said in a statement. “Nevertheless, restitution is being sought from anyone who made an improper claim against the TTC’s benefits plan.”