TTC suing Manulife for up to $5M over failure to spot employee fraud
NEWS STAFF, 21 September 2017
The TTC is suing Manulife Financial for up to $5 million for failing to spot and stop a large-scale scheme that saw employees allegedly bilk the transit agency with phony benefits claims. An investigation into the allegations of mass fraud are ongoing, but the TTC says so far 170 employees have been fired or resigned. Ten former employees are facing criminal charges in connection with the probe.
The TTC has filed a statement of claim in the Ontario Superior Court of Justice against Manulife. (Read full document below.) The claim alleges Manulife, which provided group benefits for the TTC, represented itself as an industry leader in combating fraud and benefits abuse. It also claimed to have systems in place to detect irregularities and weed out employee fraud.
