February 26, 2016 7:32 pm

TTC fires 12 employees in connection with health benefits fraud investigation

Adam Frisk/Global News

TORONTO — The TTC has fired 12 employees as part of an investigation into health claims fraud by service provider Healthy Fit.

The owner was arrested by Toronto police last July and the TTC says the fraud came to light in late 2014 through an employee “integrity hotline.”

Around 600 employees made claims through Healthy Fit that were paid out through insurer Manulife. The TTC says not all those employees are under investigation and that some of the claims may have been legitimate.

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“It’s still to early to say what percentage are fraudulent,” TTC spokesperson Brad Ross said Friday. The total value of the claims is around $5.1 million.

READ MORE: TTC supervisor fired over alleged insurance benefits scam

The details were contained in the Auditor General of Toronto’s 2015 annual report on fraud and hotline activities. Last year there were 572 complaints and 800 allegations.

“Twenty-five per cent of all complaints reviewed or investigated were substantiated in whole or in part,” according to the report.

The TTC says they are cooperating with the investigation and plan on seeking restitution in those cases where fraud is proven.

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