Close X
Friday, November 1, 2024
ADVT 
National

Ontario recovers $11M in alleged COVID fraud

Darpan News Desk The Canadian Press, 23 Jan, 2021 01:08 AM
  • Ontario recovers $11M in alleged COVID fraud

A former senior employee with the Ontario government has repaid more than $11 million in COVID-19 benefits the province alleges he took fraudulently, his lawyer said on Friday.

The unproven civil claim named Sanjay Madan, who had a senior IT role and helped develop the computer application for applying and approving the benefit for families with children.

In a brief statement, Madan's lawyer Christopher Du Vernet confirmed his client had made the repayment.

"In fact, the province has recovered in excess of the funds it presently alleges Mr. Madan took from the Families Support Program," Du Vernet said.

"However, it is also seeking its legal costs, interest and punitive damages, so the action continues."

In its untested lawsuit filed last fall, the province alleged Madan, his wife and two adult children who all worked for the Ontario government in information technology defrauded the province of at least $11 million.

The civil claim, which also sought $2 million in punitive damages, accused them and others of illegally issuing and banking cheques under the program that aimed to defray the cost of children learning at home.

"The Madan family exploited their positions of employment with Ontario and unique access to the (program) and payment processing system," the government alleged in the claim. "The plaintiff was uniquely vulnerable to Sanjay, particularly with respect to the integrity of the...application."

The Ministry of the Attorney General did not immediately confirm the recovered money, first reported by the Toronto Star.

Du Vernet said his client "deeply regrets" his actions and was awaiting results of medical opinions on his condition.

According to the lawsuit, Madan and his family opened more than 400 accounts at the Bank of Montreal between April and May. They then deposited around 10,000 cheques made out to fictitious applicants with thousands of non-existent children under the support program.

Most deposits were made over a four-week period starting on May 25, coinciding with a rule change that allowed more than five payments to be made to an applicant. The government alleges Madan either sparked the rule change or knew about it and took advantage.

In other court filings, Madan is said to have told the government that he could explain "all of this" and that he has "helped many families."

The government had served notice it intended to seize any money the family allegedly obtained fraudulently and obtained a court order to have their bank accounts turned over to the court pending the outcome of the lawsuit.

The government also obtained a court order freezing the family's assets, which included a list of properties in Toronto.

Madan was fired in November.

MORE National ARTICLES

Churches fined $18,400 for COVID-19 violations

Churches fined $18,400 for COVID-19 violations
On the Sunday mornings of Dec. 6 and Dec. 13, officers in Chilliwack, B.C., responded to reports of people gathering at three separate churches contrary to the health orders.

Churches fined $18,400 for COVID-19 violations

No easy solutions to high insurance costs: report

No easy solutions to high insurance costs: report
The BC Financial Services Authority says risks related to catastrophic events, some involving climate change, have put additional pressure on insurance companies' profitability, impacting premiums and deductibles in parts of Canada and globally.

No easy solutions to high insurance costs: report

Former B.C. legislature clerk charged

Former B.C. legislature clerk charged
James and sergeant-at-arms Gary Lenz were suspended from their jobs two years ago and retired in 2019.

Former B.C. legislature clerk charged

Surrey RCMP investigating shooting in the Newton neighborhood with ties to gang activity

Surrey RCMP investigating shooting in the Newton neighborhood with ties to gang activity
According to police there have been no injuries in this targeted incident. The public is not at risk. The investigation is in its early stages and suspects are still being identified.

Surrey RCMP investigating shooting in the Newton neighborhood with ties to gang activity

Applications slow B.C. COVID benefit website

Applications slow B.C. COVID benefit website
Some users have reported getting an error on the site when making their application for the benefit of up to $1,000.

Applications slow B.C. COVID benefit website

'No lessons' from China on two Michaels: Champagne

'No lessons' from China on two Michaels: Champagne
Champagne has led Canadian efforts to create a coalition that includes dozens of countries pushing China to release the two men, whom they say are being arbitrarily and unjustly imprisoned.

'No lessons' from China on two Michaels: Champagne