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“It’s a bit of a nightmare for investigators to untangle it all,” he said. “I can’t begin to give you numbers. We’re just not there yet, we’ve got mounds of paperwork to go through.”

In some cases, employees never actually received the item that Manulife Financial reimbursed them for, police said. In other cases, the receipts for the items were allegedly inflated.

Healthy Fit’s owner, Adam Smith, along with employees Sachia Leon and Savath Nget are all charged with fraud over $5,000 and laundering the proceeds of crime. Police are also investigating “a couple” of Toronto-area doctors in connection with the alleged frauds, Stewart said.

The TTC takes, very seriously, the responsibility placed on it to protect public money

On Wednesday, TTC chief executive officer Andy Byford sent a letter to all employees, warning that any future or recent claims from Healthy Fit will be rejected.

“The TTC takes, very seriously, the responsibility placed on it to protect public money,” Byford wrote. “The TTC will seek full restitution from anyone found to have defrauded the organization and, ultimately, the public.”

A tip about the alleged scheme came through the TTC’s whistle-blower program, Byford said.

TTC spokesman Brad Ross refused to comment outside Byford’s letter, which was provided to the media.

The TTC notified Manulife, which conducted its own investigation and alerted police, Manulife spokeswoman Anne-Julie Gratton said.

Calls to Healthy Fit were not returned on Wednesday.

The store’s website lists two locations: the Wilson Avenue shop raided by police, and another in Mississauga. According to the site, the stores have a chiropodist on site and sell custom orthotics, orthopaedic footwear, knee and back braces, cervical pillows and compression stockings.

“Most services and products are covered under your Extended Health Benefits plan,” the website reads. “No referral required. Please call us for an appointment.”