Three people have been charged following an investigation into an alleged benefit fraud scheme in Toronto.
Police said that the owner of a business called Healthy Fit has been accused of participating in a scheme to defraud Toronto Transit Commission (TTC) members and their benefits provider, Manulife Financial.
Healthy Fit, located at 333 Wilson Ave. just west of Bathurst Street, is a business that provides orthotics, braces and other medical devices.
In a statement issued Wednesday, officers said the owner had prepared fraudulent billing for devices that were never received.
"It is alleged that receipts were provided to individuals by Healthy Fit for claim reimbursement where no product or service was obtained or where receipt amounts were inflated," TTC CEO Andy Byford said in a notice issued to employees and the media.
"It is further alleged that the health care provider and the person making the claim would then share the money paid out by the TTC's insurer, Manulife Financial, for these improper and fraudulent claims."
Byford wrote that, effective immediately, any Healthy Fit claims made recently or in the future will be rejected.
"Furthermore, the TTC will seek full restitution from anyone found to have defrauded the organization and, ultimately, the public."
Police said they believe the business targeted members of the TTC to take advantage of their insurance benefits. The financial loss is estimated at $4 million.
"There are loopholes that (one of the suspects) was able to figure out," Det.-Const. Kevin Williams told CTV Toronto on Wednesday. "And basically manipulate that to his benefit."
Williams said the other two suspects worked at the Healthy Fit office.
Police said a man and two women were arrested on Tuesday. Adam Smith, 44, of Mississauga, has been charged with fraud over $5,000 and laundering the proceeds of crime.
Sachia Leon, 28, and Savath Nget, 30, both of Toronto, face the same charges.
Anyone with more information is asked to contact Toronto Police Financial Crimes Unit Det. Const. Kevin Williams at 416-808-7306. Tips can also be left anonymously through Crime Stoppers at 416-222-8477 (TIPS).
