TTC suing Manulife Financial

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Net Patrol International Inc.  Data Investigation and Forensic Services
Bankruptcy and Insolvency Trustees

The Toronto Transit Commission (TTC) is suing Manulife Financial for alleged negligence in connection with a benefits fraud scheme that was discovered three years ago.

Since the fraud operation came to light, 170 TTC employees have been dismissed or have retired or resigned to avoid dismissal. Ten former employees are facing criminal charges for their connection to the alleged fraud.

In the statement of claim, filed in the Ontario Superior Court of Justice, the TTC alleged Manulife Financial did not have the necessary fraud management controls in place, nor were there systems in place to detect and analyze unusual trends or patterns that might indicate fraud. The claim goes further alleging Manulife breached its duties of care, which in turn contributed to the losses suffered by the TTC.

The TTC says it is seeking up to $5 million in reimbursement and damages.

The allegations in the statement of claim have not yet been proven in court.

Read more at National Post

This article is summarized by Canadian Fraud News Inc.