A Toronto orthotics store owner and two employees have been arrested for their roles in an insurance scam that defrauded the Toronto Transit Commission (TTC) and
Manulife Financial of more than $4 million.
The charges arise from a recent police raid on Healthy Fit, a medical device provider based in Toronto. Investigators allege that the store’s workers “prepared fraudulent billing for devices that were never received,” according to
CBC News.
“It is alleged that receipts were provided to individuals by Healthy Fit for claim reimbursement where no product or service was obtained or where receipt amounts were inflated,” wrote TTC CEO Andy Byford in a notice to employees. "It is further alleged that the health care provider and the person making the claim would then share the money paid out by the TTC's insurer, Manulife Financial, for these improper and fraudulent claims."
Byford proceeds to acknowledge that TTC employees may have been involved in the scheme, which was brought to light by the Integrity line, the agency’s whistleblower program. He is conducting an internal review to supplement police investigation, and promises that “no stone will be left unturned” when looking for guilty parties.
"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," Byford said.
The transit workers’ union has also released a statement condemning the fraudulent activity, arguing that the scam could hurt vulnerable groups who benefit from these claims.
“The damage is not just financial; it will slow down and even potentially discourage legitimate claims, many of which involve children with neuromuscular and skeletal disabilities who need orthoses to live a normal, pain-free life,” said Manny Sforza, executive vice president of Amalgamated Transit Union Local 113.
The Healthy Fit employees, aged between 28 and 40, have been charged with Fraud Over $5000 and Laundering Proceeds of Crime.
