Five employees have been fired and police have been called in after Toronto Community Housing Corporation found “evidence of wrongdoing” at its former subsidiary that carried out work on 200 Wellesley St. E. following a fire in 2010.

“The findings are serious, and today we have taken appropriate steps to address them,” said CEO Gene Jones in a statement emailed to the press. “I am serious about making Toronto Community Housing a landlord of excellence, and changing the culture at our company so that we are honest, transparent and accountable in everything we do.”

Mayor Rob Ford said the problems involved “millions” of dollars.

Several sources at the TCHC told the Star that some of the terminated employees were in managerial positions and could be found on the public “sunshine list” of people earning $100,000 or more per year.

A TCHC spokesperson would not name the employees affected, saying they do not comment on personnel matters.

Last month, the Star revealed that TCHC had launched an investigation into possible financial wrongdoing at its former subsidiary, Housing Services Inc., in which documents may have been altered so as to make expenses from an Ottawa work site appear to have been spent on work in Toronto.

Improperly allocating expenses could have made the Ottawa project appear more profitable than it was.

Two people briefed on the investigation, who asked for anonymity to discuss confidential matters, previously told the Star that it appeared Wite-Out was used to alter documents.

Ford, who was privy to the results of the investigation, said he was happy with Jones’ work to root out problems at TCHC.

“I can’t get into too much detail, but from what the forensic audit said it’s very disturbing. I don’t like to use the word kickbacks, but it could be the situation. And five people just got fired today. I don’t like to see anyone get fired, but at the end of the day if they’re guilty, I don’t want people like that working for the city,” Ford said.

TCHC distanced itself from Ford’s comments, releasing a statement saying “the terminations were not based on any evidence of kickbacks.”

The TCHC brought in external forensic auditors to look at paperwork filled out by Housing Services, which was absorbed by TCHC in 2012. Jones said Wednesday “appropriate steps” had been taken, including termination of five employees.

“In addition, we have spoken with Toronto Police and will be handing over the findings to them to determine whether there are matters worthy of further investigation,” Jones said.

TCHC board chair Bud Purves confirmed that other employees were the subject of disciplinary action, but wouldn’t confirm how many people were concerned nor what penalty was handed out.

He also wouldn’t rule out further action on the matter, as the investigation hasn’t been terminated.

Much of the work at 200 Wellesley was covered by insurance, and it’s unclear whether further action might be taken by TCHC’s insurer, AIG. Fraud related to an insurance matter could jeopardize the city’s claim.

TCHC spokesperson Sara Goldvine said the public agency had been in touch with its insurer throughout the investigation. AIG did not return calls for comment.

Jones, who previously worked with several American public housing agencies, was hired in June 2012 to replace Keiko Nakamura, who was fired in March 2011 following a spending and procurement scandal. Jones quickly embarked on a broad leadership shakeup, firing several longtime senior officials without cause and creating several new management positions.

“The recent workplace investigation at Housing Services Inc. has been part of a process that the board began about two years ago to ‘shine bright lights’ on what Toronto Community Housing does well and where it needed to improve,” said Purves.

“This is exactly why the board hired Gene. He is driving change and improvement at the company, and instilling a new culture of accountability. He has the board’s full support,” he said.

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At city hall, Jones was lauded for his efforts to end corruption in Toronto public housing.

“The fact that Gene Jones, since he’s been hired, is actually ferreting out this inappropriate behaviour in the past that borders on illegal — and some of it may even be illegal — is a good thing, because it means that he’s doing his work, and we’re actively investigating allegations of past wrongdoings,” said city councillor and TCHC board member Maria Augimeri. “Isn’t that better than keeping it behind closed doors, as what happened in the past? We want to uncover improprieties.”