Update: TTC has now fired 223 employees in ongoing fraud investigation
The TTC has dismissed 223 of its staff following an ongoing benefits fraud investigation.
According to the transit commission, the TTC began an investigation following a tip to its “Integrity Line” in 2014.
At the time, TTC employees were being provided receipts by Health Fit, which included health care products and services provided by the company. But the TTC says there were no products or services provided, and receipt amounts were inflated.
“It was alleged, and now proven, that Healthy Fit and the employee making improper claims would then share the money paid out by Manulife Financial,” states the TTC in a release.
Adam Smith, the owner of Healthy Fit, was found guilty of two counts of fraud over $5,000 and was sentenced to two years in a federal penitentiary.
Since the investigation began, 10 TTC employees were charged with fraud, with 4 pleading guilty to date, receiving a conditional discharge, one year probation, and community service. Six other former employees still remain before the courts.
In September, the TTC announced it would be suing Manulife Financial for up to $5 million as part of the benefits fraud scheme.
It says that Manulife Financial didn’t 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.”
The TTC alleges that Manulife breached its duties of care, which contributed to the losses suffered by the TTC and, thus, the public.
Since this investigation began, the TTC says it has seen a reduction in benefits claims costs of more than $7 million.
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