More than 100 TTC employees dismissed or resigned over benefits claims irregularities

More than 100 employees have been either dismissed or resigned as part of a continuing investigation into an alleged benefits fraud, which is also the focus of an ongoing criminal investigation by the Toronto Police Service, the TTC announced today.

In July 2015, police laid criminal charges against the owner of Healthy Fit, a health care products and service provider that TTC employees frequented.

It is alleged that receipts were provided to employees by Healthy Fit for claim reimbursement where no product or service, e.g. orthotics, compression stockings and sleeves, was obtained, or where receipt amounts were inflated. It is also alleged that Healthy Fit and the employee making the improper or fraudulent claim would then share the money paid out by the TTC’s insurer at the time, Manulife Financial.

The TTC’s benefits provider changed to Green Shield on Jan. 1, 2017 following a public procurement process.

TTC investigators are continuing to interview employees who have filed benefits claims involving Healthy Fit. Where evidence shows the TTC’s benefits plan was defrauded, the employee is dismissed. Others have resigned to avoid dismissal. To date, 82 employees have been fired and more than 20 have resigned or retired to avoid firing. The TTC expects these numbers to grow.

The TTC has insurance to protect itself against financial loss due to benefits fraud. However, restitution is being sought from anyone who made an improper claim against the TTC’s benefits plan.

In 2016, alone, the TTC saw a reduction in overall benefits claims of almost $5 million over 2015, reflecting the TTC’s continued success in addressing this serious issue – an issue that goes beyond just the TTC.

The TTC’s “Integrity Line”, launched in 2014, has proven extremely helpful in rooting out alleged wrongdoing within the organization, and was the first to shed light on this alleged fraud.

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