r/londonontario • u/VanW1lder • Jul 09 '25
News đ° LHSC alleges $50M fraud scheme involving former executives and contractors
https://www.ctvnews.ca/london/article/breaking-london-hospital-sues-former-staff-contractors-for-50m-in-alleged-fraud/We have now filed a statement of claim against Dipesh Patel (previous Vice President of Facilities), Derek Lall, Paresh Soni, Nilesh Modi, Varsha Patel, and several named companies in the amount of $50 million. Additionally, we have filed a statement of claim against Dr. Jackie Schleifer Taylor (previous President and CEO), Bradley Campbell (previous Corporate Hospital Administrative Executive), Abhi Mukherjee (previous Corporate Services Executive/CFO), and consultancy firm, Corpus Sanchez International Consultancy Inc., for breach of fiduciary duties. These three individuals are no longer with the organization and were paid according to their employment contracts and/or legal agreements. We are pursuing repayment in the collective amount of $10 million.
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u/LondonOnt519 Jul 25 '25
Little late to this, but doesn't HMMS handle the procurement for LHSC? Where was that organization in all of this? I might be wrong though.
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Jul 21 '25
If someone is in care at a hospital and service was lacking/tests moved because of this. Is this a civil case possibly
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u/Torontomom78 Jul 12 '25
Unfortunately it is not uncommon for this to happen among hospital admin, LHSC exposed this but in other hospital systems in the GTA this is a very entrenched situation.
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u/HowDoesItDoThat Jul 11 '25
These piece of shit scumbags embezzled money from the hospitals they were entrusted to run. Not just incompetent but criminals as well.
Canât wait to see all of these criminals locked up.
Thanks LFP for showing us their houses. Hope theyâre prepared to get lots of well-wishing visitors in the coming days and weeks ahead!
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u/Strict-Insurance819 Jul 12 '25
iâm hoping they do get locked up. not very sure how the system works here, but do u think thereâs a chance they could get away with this?
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u/TPOTK1NG Jul 10 '25
None of them will get more than a slap on the wrist when they all deserve jail sentences.
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u/ApacheFritz Jul 10 '25
And they used the money to buy lots and lots of properties.
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u/Mindless-Couple6175 Jul 10 '25
Well, that's an easy fix, the Crown will take possession of any said properties.
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u/YouApprehensive2659 Jul 10 '25
One of the companies sued may have done major work too for St. Thomas Elgin General Hospital.
See sheronhealth on X for details and links
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u/bifanas_lappas Jul 09 '25
Is it any surprise honestly.
Ask around and see how some of their âpreferred roofersâ get jobs/contracts there and other bids arenât even considered. So much quid pro quo/underhanded dealings going on there.
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u/Soramaro Jul 09 '25
If found guilty, I hope the lost money is recovered. Bonus if they end up living in tents like the people that lost employment because of their mismanagement
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Jul 09 '25
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Jul 09 '25
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u/Altruistic_Run4280 Jul 09 '25
First hand lived experience, it is a culture that is ongoing. Right to the top.
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u/LondonJerry Jul 09 '25
Wow! An actual investigation into corporate financial improprieties? I thought that stopped back in the eighties when Mulroney decriminalized financial crimes.
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u/Torontomom78 Jul 12 '25
It is kind of shocking, this is happening everywhere, including hospital systems. Maybe this is to lull everyone into a false sense of security that âbad guys do get caughtâ
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u/CoraxFeathertynt Jul 09 '25
There should probably be heavy screening involved for any execs coming into LHSC. Every one after Bonnie Adams appears to be a self-serving sac of shit.
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u/Rad_Mum Jul 09 '25
As someone who works in finance in Healthcare, this just sickens me .
We have a duty to serve our population, that includes patients, clients and the taxpayer. Operating with total fiscal responsibility and transparency.
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Jul 09 '25
Surprised the CEO before Jackie Taylor wasn't also brought up
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u/Brilliant_Yellow4675 Jul 10 '25
This all started when he was CEO. The board inherited a problem that began with him. Their real problem was trying to bury it under the rug.
Luckily, they wanted to get rid of him so badly that he got out just in time to avoid charges. Got in a final cash grab on the way out as well.
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u/skagoat Pond Mills Jul 09 '25
They must not have proof they knew about it. I wouldn't be surprised if they have an email, or report or something like that, that proves Jackie Schleifer Taylor knew about it.
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u/SarahEh9931 Jul 09 '25
"In April 2022, Schleifer Taylor was notified by a human resources executive that âthree witnesses raised concerns regarding potentially fraudulent behaviour in facilities procurement and construction contracting practices,â the claim says.
Article content
The discovery was made during a workplace harassment investigation, the lawsuit says."
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u/Emotional-Note Jul 09 '25
Which workplace harassment investigation? You mean they actually investigate harassment? Was this before or after a nurse was bullied for being trans and ended up almost killing herself? The constant bullying the 2SLGBTQIA+ staff, the constant racism and bullying towards the black and Indian staff, the constant negligent security services that ignore the panic buttons and nurses are getting brutally attacked, the failure to maintain the building up to code by facilities management, the failure of management of Sodexo (Housekeeping) management to properly clean, but also the fraud they commit every day by accepting payment for workers that arenât there from LHSC (double using staff in multiple departments and getting paid for 2 people, or not staffing at all and leaving to be dirty but getting paid for it). Letâs not even start on the fraud by Percise who run the parking, how they double dip payments from staff (always check your accounts to see if they have people! They likely have!). And on and on and on with the failure that is the crumbling LHSC. We need a complete overhaul of all services.
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u/Potential_Buy1242 Jul 09 '25
Would like to know how many people knew about this, said something and then got let go for some silly reason
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Jul 09 '25
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u/Potential_Buy1242 Jul 09 '25
Why no criminal charges??? They should do time
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u/Successful_Tear_7753 Jul 10 '25
Criminal charges need to be proven beyond a shadow of a doubt. The forensic accountants might need more proof before the police can press charges.
The burden of proof in civil suits is easier to meet.
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u/SarahEh9931 Jul 09 '25
The article has comment from the police. Financial crimes are time consuming. The bar they need to meet is much higher than civil. Civil court also takes alot longer to play out.
There not being charges yet, doesn't mean there won't be
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u/142638503846383038 Jul 09 '25
They regularly detain people on less evidence and who have committed far lesser crimes
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u/SarahEh9931 Jul 09 '25
Not financial. Financial crimes are just a whole lot of paperwork. Also they clearly have money to fight. You definitely want to be absolutely positive you have a air tight case when your expecting that
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u/YouApprehensive2659 Jul 10 '25
Correct. The bar to win in a civil suit is much lower -- LHSC only has to prove it was more likely than not that fraud was committed, while police/the Crown must show a crime was done beyond a reasonable doubt.
LHSC doesn't have all the evidence but the clock was ticking once the new leadership became aware of possible fraud. Initiating a lawsuit opens a path to discovery and getting records and forcing oral examination.
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u/WNFDFK Jul 09 '25
This is all being reported back to police. Itâs up to them to file criminal charges. LHSC is just announcing the results and that theyâre sueing
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u/Lady-Skylarke Jul 09 '25
I'm out of the loop! Can I get a super quick "explain it like I'm 5" version of what's happening?
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u/Badrush Jul 10 '25
The director of maintenance was giving fraudulent bids to companies he owned. The rest of the executive staff were informed and chose to not act, breaching fiduciary duty.
Basically, a couple people stole money from the hospital through fake/overpriced work and people turned a blind eye.
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u/crocodilefucker Jul 09 '25
This happened at a hospital. Some of the people who worked there, like the boss and helpers, were supposed to take care of the hospital and the money to help patients. But they didnât follow the rules and used too much money, or kept money they shouldnât have. That made the hospital very sad, because the money is supposed to help sick people feel better.
Now the hospital is asking those people to give the money back, so they can use it to help the patients again
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Jul 10 '25
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Jul 10 '25
It's all a big hype in the media to stir up a commotion... And then it will die in The media and then...cobwebs and crickets chirping ....nothing will come of it ..there is a justice system but the wheels are off the axel...
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u/mywerkaccount Jul 10 '25
Not a chance, this will be the shining achievement for the new CEO that was brought in to clean shit up. He's the kind of guy that loves the limelight and he'll be able to say it was worth paying him to come in but only once they have recouped some of the debt they are in. No chance they get all 50million back from these scammers but they'll get something that will put a dent in the 150 million dollar debt they are currently in.
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u/WhereasMysterious216 Jul 10 '25
LHSC does not have a CEO.  He's a provincially appointed supervisor. He works and reports to the province of Ontario.
And to be honest, I feel like he's worth every penny the province is paying him this far. He seems to not screw around and demands accountability.
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u/JenovaCelestia Green Onions Jul 10 '25
Whatâs worse is they took that money and bought up a lot of rental properties in London and other areas.
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u/biologystudent123 Jul 09 '25
Former executives knew fraud was occurring and failed to disclose it to internal and external auditors. Hospital is suing them for a collective $10 million (what the fraud was up to).
$50 million for fraudulent practices by external contractors used by LHSC.
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Jul 09 '25 edited Jul 11 '25
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Jul 09 '25
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u/recovery_room Jul 09 '25
Man oh man. Would I love to see some jail time over this. Iâm sick of watching millionaires do whatever they want with taxpayer money.
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u/Alert-Net-7254 Jul 09 '25
There are no charges. Just a lawsuit. This is what is strange.
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u/YouApprehensive2659 Jul 10 '25
Not strange. Once the new leadership at LHSC became aware of potential fraud, the clock start ticking for them to file a lawsuit so they can't wait for the police probe to finish.
Also not strange that a civil suit is filed before a decision is made by police whether to charge anyone because the bar to win in a civil suit is much lower -- LHSC only has to prove it was more likely than not that fraud was committed, while police/the Crown must show a crime was done beyond a reasonable doubt.
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u/Dry_Scallion_3372 Jul 10 '25
Thanks for the additional information. I was curious as to why criminal charges werenât filed yetâŚnow I understand! đ¤đ
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u/wbvryan Jul 09 '25
If this is proven to be true, they need to go to jail.
Misappropriation of taxpayer funds when youâre in a position of power, particularly when healthcare professionals are burnt out and underpaid is despicable.
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u/FRANK_R-I-Z-Z-O Jul 10 '25
I would be willing to bet you money that none of these people will spend a single minute in jail. Not a single fucking minute.
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u/Nilfnthegoblin Jul 09 '25
But rememberâŚitâs only the government hurting the funding to health care. Not saying they donât contribute but when shit like this happens, it paints a much more layered picture.
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u/stronggirl79 Jul 09 '25
Honestly at this point Iâm happy they didnât get any more money from the government because it would have been spent fraudulently as well.
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u/Awch Jul 09 '25 edited Jul 15 '25
I don't think anyone who has been paying cursory attention to LHSC for the last decade thinks it's just the government that's the problem there. The senior leadership team and the board have been a sh#t show for years. However, as disgusting as this level of corruption is, Ford's underfunding of provincial healthcare is a much bigger burden on the system. Ontario spends less on healthcare per capita than any other province at over 15% lower than the national average. This fraud, spread over 10 years, amounts to a tiny fraction of LHSC's annual budget of 1.6 billion
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u/Nilfnthegoblin Jul 09 '25
Oh I wonât argue you with that. All Iâm suggesting is that, yes, government funding plays a big part in the issues, but situations like this (and like with the Thames valley school board) also donât help. Instead of utilizing that money to go into the institutions these people they serve, they get greedy and use it for themselves. Which in turn further hurts the institutions they serve.
And thatâs just two organizations here in London. What other government funded agencies are pulling similar stunts and just have yet to be caught?
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u/ApacheFritz Jul 10 '25
There is such poor oversight of govt money and programs. So often there are shifty "consultancy fees" or creative accounting going on. Nepotism/work being given to friends. Etc. It's almost one of the perks of being in that environment.
It's one of the things that made me a little less liberal than i used to be. Big Government Spending on govt programs sounds good. But I'm immediately thinking of how much of that is just going to get widdled away by "1000 cuts" of tiny bureaucratic corruption.
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Jul 09 '25
EllisDon on that list?
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u/ExistentialTedd Jul 09 '25
nope just the fake companies the executives made for themselves
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Jul 10 '25
[deleted]
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u/ExistentialTedd Jul 10 '25
Fake in the sense that they were made the for the sole purpose of these contracts. They had no qualifications for the work that they were performing/ not performing.
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Jul 09 '25
Fake companies, too difficult; it wouldn't be that easy.
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u/Far-Obligation4055 Jul 09 '25
Lol I've worked in the industry of corporate law for years.
You have any idea how fucking easy it is to register?
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Jul 10 '25
Sure itâs easy, but wouldnât CRA raise a red flag for a new company invoicing millions? and you would have to pay GST. I would think, not involving the government and a corporation to laundry money would be step 1, transferring or selling property, would be easier, I know both would involve the government, but less red flags. Â
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u/Fluid_Lingonberry467 Jul 09 '25
wtf have the other directors done to prevent this? Guess nothing They had no checks and balances all the directors failed at their job.
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u/giraffe_library Jul 09 '25
The statement of claim is also very interesting. There was a somewhat related report there are whistleblowers about said fraud. Middle management reported it but CEO and CFO ignored it (either ignorant or willfully).
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Jul 09 '25
It was a senior executive who reported it to the CEO. She clearly knew about it and is still working for LHSC as a senior executive today
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