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TTC suing Manulife for alleged negligence related to benefits fraud scheme

Does Kathleen Wynne plan to privatize the TTC? Well, no.
The TTC says it is seeking up to $5 million in reimbursement and damages. Brent Lewin / File / Getty Images

TORONTO – The Toronto Transit Commission is suing Manulife Financial for alleged negligence in connection with a benefits fraud scheme that first came to light three years ago.

To date, 170 TTC employees have been dismissed or have resigned or retired to avoid dismissal, and 10 former employees are facing criminal charges for their part in the alleged fraud.

READ MORE: 12 facing criminal charges in alleged $5M TTC benefits fraud investigation, 150 fired to date

In a statement of claim — filed in the Ontario Superior Court of Justice — the TTC alleges Manulife Financial did not have appropriate fraud management controls in place nor were there systems in place to detect and analyze unusual trends or patterns that might indicate fraud or abuse.

It maintains that Manulife breached its duties of care, which contributed to losses suffered by the TTC.

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READ MORE: More than 100 TTC workers fired or resigned in benefits fraud probe

The TTC says it is seeking up to $5 million in reimbursement and damages.

The allegations in the statement of claim have not been proven in court.

LISTEN: TTC spokesman Brad Ross on why the TTC is suing Manulife

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