BREAKING: London, Ont. hospital sues former staff, contractors for $60M+ in alleged fraud and negligence
London Health Sciences Centre (LHSC) is suing several former employees and contractors, alleging a fraudulent scheme that defrauded the hospital of tens of millions of dollars over more than a decade.
In a statement of claim filed in court, LHSC is first seeking $50-million in damages, plus an additional $1.5-million in punitive damages, against former executive Dipesh Patel, Derek Lall, and Neel Modi, as well as director of BH Contractors Paresh Soni and construction firms BH Contractors and GBI Construction.
The hospital alleges the group conspired to manipulate procurement processes, submit fraudulent documents, inflate invoices, and improperly award contracts to companies with undisclosed conflicts of interest, actions LHSC believes amount to civil fraud, breach of fiduciary duty, and unjust enrichment.
Patel, who served as a senior executive overseeing facilities management between 2013 and 2024, is accused of being a central figure in the scheme. According to LHSC, Patel helped direct millions of dollars in contracts to companies linked to Soni, a close associate, without disclosing the conflict of interest. Patel was terminated in August 2024.
Between 2015 and 2024, BH Contractors, which LHSC claims was controlled by Soni, received nearly $30-million in payments, including over $21 million for a window replacement project at University Hospital. LHSC alleges the bid for that project was irregular and non-compliant, and that BH inflated costs by about $10 million above independent estimates.
In a separate instance, GBI Construction, also linked to Soni, allegedly invoiced LHSC more than $330,000 for services tied to an allegedly fictitious system. Between 2013 and 2024, LHCS alleges GBI received more than $11 million from the hospital.
The hospital alleges the defendants used aliases and forged documents to secure contracts, including submitting falsified insurance and safety certifications. For example, in 2022, BH Contractors renewed its vendor-of-record status with documents allegedly signed by 'Paul Smith,' an alias LHSC says was used by Soni.
The statement of claim also outlines what is believed to be suspicious real estate activity.
Patel is said to have acquired or controlled at least 22 properties, 17 of which were purchased after BH won the University Hospital window contract.
According to the statement of claim, Soni is linked to at least 43 properties valued at nearly $14 million, most acquired after GBI secured long-term contracts with LHSC.
Modi and Lall, both former LHSC employees who reported to Patel, were also terminated — Modi for cause in February 2025 and Lall retroactively in April of the same year, due to their alleged involvement in the scheme.
LHSC terminated its agreements with GBI and BH Contractors in September 2024 and June 2025, respectively.
The hospital says it uncovered the alleged fraud in late 2024 during a probe into irregularities in procurement.
The claim stated that full details of the alleged damages will be provided before trial but estimates current losses at approximately $50 million.
The allegations have not yet been tested in court.
LHSC sues ex-executives over alleged cover-up of fraud scheme
In their second statement of claim, London Health Sciences Centre is also suing three former executives and a consulting firm for $10 million, alleging they ignored or concealed evidence of fraud that may have cost the hospital millions of dollars.
LHSC filed a statement of claim in Ontario Superior Court, accusing former CEO Jackie Schleifer Taylor, former CFO Abhijeet Mukherjee, former executive Bradley Campbell, and consulting firm Corpus Sanchez International, of breach of fiduciary duty, negligence, and willful misconduct.
The lawsuit claims the defendants failed to act after being made aware of a confidential report in 2022 that raised concerns about possible fraud in hospital procurement and construction contracts.
LHSC alleges the executives didn't inform the board, internal auditors, or external audit firm Ernst & Young about the allegations. Instead, the statement claims, the accused allowed staff implicated in the report to oversee an internal cost review that made no mention of the suspected wrongdoing.
The hospital further alleges that Schleifer Taylor and Mukherjee signed audit representations falsely affirming there were no known issues of fraud, in breach of professional and legal standards.
The defendants are jointly and severally liable, according to the claim, and the hospital is seeking to recover employment compensation paid to them, plus $100,000 in punitive damages.
None of the allegations have been proven in court, and no statements of defense have been filed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
2 hours ago
- CTV News
B.C. manufacturer creates first hybrid electric logging yarder
Vancouver Watch A Campbell River manufacturer that specializes in building machines for the forestry industry, has developed the first ever hybrid electric logging yarder.
Globe and Mail
3 hours ago
- Globe and Mail
Galway Metals Announces Final Option Payment for Royalty Buy Back at Its Clarence Stream Property
TORONTO, July 11, 2025 (GLOBE NEWSWIRE) -- Galway Metals Inc. (TSXV: GWM) (' Galway ' or the " Company") is pleased to announce that it intends to settle the sixth (6 th) and final of six (6) payments (the ' Sixth Partial Payment ') due in consideration of an agreement previously announced on July 21, 2020 (the ' Agreement ') by the cash payment of $125,000 and the issuance of 974,026 common shares in the Capital of the Company (' Shares ') at a deemed price equal to $0.385 per Share for a total deemed price of $375,000. Pursuant to the Agreement, the Company bought back a two percent (2.0%) net smelter returns royalty (the ' Royalty ') from an arm's length third party royalty holder (the ' Former Royalty Holder'), covering certain mineral claims at the Company's Clarence Stream property in southwest New Brunswick (the ' Property '). The Agreement provided for a total purchase price of $3,000,000 in six equal annual instalments of $500,000, with each partial payment representing the purchase of one-sixth (1/6) of the Royalty (each a ' Partial Payment '). The first Partial Payment was settled on Closing in 2020 through the issuance of 434,783 Shares to the Former Royalty Holder at a deemed price equal to $1.15 per Share for a total deemed price of $500,000. Pursuant to the Agreement, each subsequent $500,000 Partial Payment was to be paid as follows: (i) $125,000 in cash; and, (ii) the remaining $375,000, at the sole election of the Company, paid either in cash, through the issuance of Shares, or a combination thereof as shall equal $375,000. The Shares will be subject to the statutory hold periods of four months and one day from the date of issuance. Completion of the issuance of the Shares is subject to the receipt of all regulatory approval including the final approval of the TSXV. About Galway Metals Inc. Galway Metals is focused on creating significant per share value through the exploration and sustainable development of its two 100%-owned projects in Canada. Galway's flagship project, Clarence Stream, is one of the most important gold districts in Atlantic Canada as it hosts a large, high-grade gold resource in SW New Brunswick. Also important is Estrades, the former- producing, high-grade, gold- and zinc-rich polymetallic VMS mine in the northern Abitibi of western Quebec as it hosts significant resources in the middle of a major gold camp. After its successful spinout to existing shareholders from Galway Resources following the completion of the US$340 million sale of that company. The company is looking to replicate the same success in Canada with our two highly perspective projects. Should you have any questions and for further information, please contact (toll free): Cautionary Statement Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release. This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as 'believes', 'anticipates', 'expects', 'estimates', 'may', 'could', 'would', 'will', or 'plan'. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, completion of the Royalty buy back on the announced terms or at all, objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to the risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
CTV News
3 hours ago
- CTV News
Southern Albertans still wrapping heads around latest tariff threat
The United States is again threatening Canada with tariffs. It's unclear what impact this latest trade-war turn might have on southern Alberta. United States President Donald Trump has threatened to slap Canada with a 35 per cent tariff starting Aug. 1. That moves back a deadline of July 21 that was set during the G7 Leaders' Summit to hammer out a new trade deal. Southern Albertans are still wrapping their heads around what this might mean for the region. 'About 90 per cent of Lethbridge is manufacturing products that are exported to the United States, so obviously, any tariff is a huge concern,' said Trevor Lewington, Economic Development Lethbridge CEO. It's the latest wrinkle in a tumultuous trade war between the two countries. The tariffs would only impact goods that aren't compliant with the Canada-United States-Mexico Agreement. Some see the new tariffs as nothing more than a negotiation tactic. 'I hope that this is just a negotiating tactic, very similar to Trump's sort of historical style, and, you know, hopefully the Canadian government will be able to move through this and come to an agreement with them,' said Lewington. The United States is again threatening Canada with tariffs. It's unclear what impact this latest trade-war turn might have on southern Alberta. The United States is again threatening Canada with tariffs. It's unclear what impact this latest trade-war turn might have on southern Alberta. The agriculture industry isn't sounding the alarm just yet. Many producers have grown accustomed to the back-and-forth tariffs and won't be concerned until any additional tariffs are actually put in place. 'Well, it raises that kind of threat of instability within our industry again—something similar to what happened last November … although I think people aren't panicking quite as bad as they did at that point in time,' said Lynn Jacobson, Alberta Federation of Agriculture president. Premier Danielle Smith has spoken out against the latest tariff announcement. In a statement posted online, the premier said, 'The threatened increase to U.S. tariffs on Canadian goods would be a tax on the American people. They would also hurt Canadian and American businesses and workers, and damage one of the most important trading and security alliances on earth.' Energy and potash tariffs are expected to stay at 10 per cent.
