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In what could be one of the largest and longest-lasting benefits fraud schemes ever discovered in Canada, a Toronto geriatric hospital has dismissed approximately 150 employees for falsely claiming as much as $5 million in benefits over an eight-year period.

“It appears to be organized,” said William Reichman, president and CEO of Baycrest Health Sciences. “It had to be done in such a way that it would escape at least detection by the benefits administrator… It’s a betrayal of trust.”

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As in previous scams of comparable size, such as the one discovered last year at the Toronto Transit Commission, this one involved misuse of prescription coverage for orthotics, knee braces, and compression stockings, but also physiotherapy.

It’s a betrayal of trust

On Wednesday Baycrest fired those employees who did not resign after a third-party internal investigation by an auditor. The investigation found that one employee had taken more than $100,000, and that several others had pocketed amounts in the $25,000 range. The majority of those staff found to be involved were unionized. They span many job categories, and include registered nurses, whose profession is regulated and licensed, such that misconduct must be reported to their college. They include personal support workers, housekeeping and cleaning staff. There are no physicians involved.