TORONTO – An owner of a Toronto orthotics business and two of his employees are facing charges for an alleged insurance benefits scam that defrauded the Toronto Transit Commission and Manulife Financial of upwards of $4 million.
Toronto police say the owner of Healthy Fit located at 333 Wilson Ave. fraudulently billed for orthotics, braces and other medical devices that were never received.
The accused have been identified as Adam Smith, 44 of Mississauga, Sachia Leon, 28, of Toronto, and Savath Nget, 30 of Toronto.
All three have been charged with fraud over $5,000 and laundering proceeds of crime.
In an email to all TTC employees, CEO Andy Byford said the benefits scam was brought to his attention through the TTC’s Integrity Line, which allows employees to anonymously speak up about issues for investigation.
Following the arrests, the TTC said any Healthy Fit claims made recently, or in the future, will be rejected.
“When the TTC received information related to this alleged scheme, it immediately advised Manulife. They, in turn, launched their own investigation, which, ultimately, led to the involvement of Toronto police,” wrote Byford.
So far, Byford said there is no evidence linking TTC employees or their dependent to any crime. However, an internal TTC investigation has also been launched as well as a full review of its benefits program.
“If, through these investigations, an employee is found to have been party to this alleged fraud they will face serious consequences, up to and including criminal charges and/or termination of employment,” Byford said.