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Ontario civil servant ‘betrayed’ family with alleged $11 million COVID-19 relief fraud: docs

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TORONTO — A former senior civil servant accused of embezzling $11 million in Ontario COVID-19 relief money betrayed his own family, according to his wife and two sons.

In sworn affidavits, the wife of Sanjay Madan and their two adult sons disavow any knowledge of his alleged scheme, which is now the subject of an unproven civil action against them all.

According to his affidavit, Chinmaya Madan said he became suspicious of his father around June last year after discovering unexplained money in his bank accounts, some of which he didn’t know existed. Only after repeated questioning did his father admit to having “diverted” money and promise to return it, the affidavit states.

“I felt betrayed by my father,” Chinmaya Madan said in the document filed in Superior Court. “I was and remain absolutely shocked by the allegations.”

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The Ontario government’s unproven civil claim names Sanjay Madan, who had a senior IT role and helped develop a computer application for the COVID-19 benefit for families with children. Also named are his sons Chinmaya Madan and Ujjal Madan, and his wife of 28 years, Shalini Madan.

The claim alleges the Madan family, who all worked for the government in information technology, defrauded the province of at least $11 million. No criminal charges have been filed.

The claim asserts the family and others illegally issued and deposited cheques under the program aimed at defraying the cost of children learning at home. The province alleges the Madans opened hundreds of accounts at the Bank of Montreal between April and May 2020, then deposited around 10,000 cheques made out to fictitious applicants.

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Sanjay Madan had always been “controlling and secretive” about money and managed the family’s finances, his wife said in her court filing. However, the actions alleged against him were totally out of character, she said, adding she learned of 1,074 Canadian bank accounts in her name, only three of which she said she had opened.

“I am at a complete loss to understand why Sanjay would risk everything in the manner he did. We needed nothing. It all makes no sense to me,” Shalini Madan says. “The Sanjay the plaintiff describes is like a completely different person than the man who is my husband and the father of our children.”

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In a statement Tuesday, the Madan family’s lawyer called the wife and children “victims not villains.”

“The Sanjay Madan who is alleged to have behaved so inappropriately is not the man they have known,” Christopher Du Vernet said. “They are still struggling to understand what prompted him to act as he did, and especially to have used his own family when doing so.”

The children claim they were the victims of identity theft. They say in their court filings that they believed their father was returning the “diverted” money and was making things right, but also say they wonder if he was just stringing them along.

Du Vernet said last week Sanjay Madan had returned more than the $11 million the government alleges he misappropriated. He said his client “deeply regrets” his actions and was awaiting results of medical opinions on his mental health.

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His family, Du Vernet said, could only conclude Sanjay Madan had long suffered from a mental disorder that profoundly distorted his judgment.

“Mr. Madan’s wife and children are learning that Mr. Madan has actually had two sides to him: the dedicated husband and father they saw, and the miscreant they never saw.”

The lawyer also said none of Sanjay Madan’s family had spent any of the money he allegedly took.

In his affidavit, Ujjawal Madan said he never had any reason to suspect any wrongdoing by his father.

“As long as I have known him, he has been a conservative spender,” he said.

The government, which fired Madan in November, has a court order freezing the family’s assets, which included properties in Toronto.

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