November 13, 2019

The TTC and Manulife today settled a 2016 lawsuit launched by the transit agency related to benefits fraud.

While terms of the settlement are confidential, the TTC is pleased to see this matter resolved in a way that allows both companies to move forward with a renewed commitment to preventing benefits fraud and penalizing those who commit it.

To date, 254 TTC employees have been dismissed - or have resigned or retired to avoid dismissal with an additional 14 disciplined. Nine former employees were convicted for their part in the fraud scheme.

In 2014, the TTC and Manulife began a joint investigation after receiving whistleblower tips that alleged receipts were being provided to employees by Healthy Fit, a health care products and service provider, where claim reimbursements were being made, but where no product or service was obtained or where receipt amounts were inflated.

In 2015, Healthy Fit shut down in the wake of the fraud investigation. Since then, the TTC has saved almost $7 million a year in benefits paid for claims on orthotics, orthopedic shoes, compression stockings and leg and arm braces.

In 2017, Adam Smith, the proprietor of Healthy Fit, was convicted of two counts of fraud over $5,000 and was sentenced to two years in a federal penitentiary.

The TTC's internal investigation continues. Where evidence shows the TTC's benefits plan was billed inappropriately, demands for repayment are made and employees face discipline, up to and including dismissal.

In 2016, the TTC saw a reduction in benefits claims costs of almost $5 million over 2015, reflecting the TTC's continued success in bringing an end to improper benefits claims or outright fraud.

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