Latest news with #PareshSoni
Toronto Sun
11-07-2025
- Health
- Toronto Sun
Relative, neighbours of duo named in $50M LHSC fraud lawsuit shocked
A relative and neighbours of two men at the centre of a pair of massive fraud lawsuits launched by LHSC expressed shock and disbelief Dipesh Patel, left, a former high-ranking LHSC executive, and Paresh Soni, described in one of LHSC's statements of claim as a 'close personal contact' of Patel's, are among those being sued in the $50-million action. One of two men at the centre of a pair of massive fraud lawsuits launched by London Health Sciences Centres declined to comment Thursday, while relatives and neighbours of the men expressed shock and disbelief over the allegations against them. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The hospital has filed two civil lawsuits, one for $10 million and the second for $50 million, against former hospital executives, businesses and others, including former chief executive Jackie Schleifer Taylor, alleging an LHSC executive was aided by other employees when he committed fraud during 10 years, and when the alleged procurement frauds were found out, top administrators failed to act. The civil lawsuits filed in Ontario Superior Court, one in June and the other Wednesday, describe an alleged scheme involving construction and facilities management contracts in which the hospital was charged for work that wasn't done, or overcharged for what was done, with a few individuals pocketing the cash and using that money to buy real estate. This advertisement has not loaded yet, but your article continues below. Dipesh Patel, a former high-ranking LHSC executive, and Paresh Soni, described in one of LHSC's statements of claim as a 'close personal contact' of Patel's, are among those being sued in the $50-million action. That lawsuit, filed Wednesday, alleges after Patel was appointed vice-president of facilities management at LHSC in 2013, he worked with others to defraud the hospital by awarding construction and facilities management contracts to several companies owned by Soni. Soni is the owner of the GBI group of three companies and a company called BH Contractors, the claim says. 'Patel conspired with the other primary defendants to perpetrate a fraud against LHSC by improperly facilitating the award of multiple major LHSC contracts to Soni's companies . . . He did so by, among other things, abusing his position of trust as a senior executive of LHSC,' the hospital claim says. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. LHSC said in the lawsuit it was defrauded of 'tens of millions' of dollars. Statements of claim and of defence contain allegations not yet tested in court. Thursday, Soni was at his home on Balnagowan Place, according to a woman there who only identified herself as his partner. The address is one of the properties LHSC alleges was bought using money obtained through the fraudulent scheme it contends took place. Paresh Soni, who LHSC alleges is a close contact of former executive Dipesh Patel, was at his home on Balnagowan Place in London on Thursday, July 10, 2025, but declined to comment about the lawsuit filed against him by the London hospital. (Jonathan Juha/The London Free Press) The woman said Soni had no interest in talking to the media. 'He said, 'No comment,'' she said. One of Soni's neighbours, who said Soni has lived in the well-to-do neighbourhood beside the Medway Valley Forest in northwest London for several years, said he was extremely surprised by the allegations and described Soni as a 'great neighbour.' This advertisement has not loaded yet, but your article continues below. 'All my neighbours are great people. I never had any issues with Paresh (Soni),' said the man, who declined to provide his name. 'He was always helpful and seemed like a nice guy . . . This is a surprise.' Harshida Choksey, who said she is a cousin of Soni, expressed similar disbelief when approached by a Free Press reporter Thursday. 'I'm just learning about this,' said the woman, who couldn't understand why her home address on Chesham Court was listed as Soni's primary residence in one of the lawsuit documents. 'He lived with us briefly when he came to Canada many years ago,' Choksey said. 'We are really not in contact with him.' A grey Lexus SUV was parked Thursday morning outside Patel's home on Case Court, where neighbours said he's lived for the past 25 years. This advertisement has not loaded yet, but your article continues below. Several attempts to contact former LHSC executive Dipesh Patel at his north London home were unsuccessful on Thursday, July 10, 2025. (Jonathan Juha/The London Free Press) Despite multiple attempts throughout the day, no one answered the home's door on Thursday. News of the allegations against Patel also caught residents of the Sunningdale neighbourhood in north London by surprise. 'We were talking about it with my wife and couple neighbors, and, you know, you don't know what you think,' said one of Patel's neighbours, who declined to give his name. 'I was speechless.' The man described Patel as a good neighbour who gets along with everyone on the street. 'I know them as a good family, good parents,' he said. 'It's a shock. It's a surprise.' According to LHSC's lawsuit, Soni's GBI company received $11.2 million from LHSC for facilities management services between 2013 and 2024, the claim says. This advertisement has not loaded yet, but your article continues below. Patel has acquired 22 properties since 1998, some through numbered companies, valued at $9.4 million and 17 were bought after BH Contractors, also owned by Soni, was awarded a hospital window replacement contract, LHSC alleges in its statement of claim involving the lawsuit against Patel. Varsha Patel, Dipesh Patel's spouse, has acquired 11 properties valued at $4.2 million since 1996, the same statement of claim contends. Soni, the hospital alleges in its lawsuit, has acquired 43 properties since 2011 valued at $14.5 million, many of them owned by numbered Ontario companies. In its statement of claim, the hospital includes a list of 98 'suspicious property holdings' in London and outside the city it contends were bought by people and companies named in the claim. This advertisement has not loaded yet, but your article continues below. Patel was fired from LHSC in 2024 when he held the title of executive, capital redevelopment and environmental operations. He was paid an annual salary of $326,423, according to a provincial list of public-sector salaries above $100,000. Former LHSC chief executive Jackie Schleifer Taylor; Brad Campbell, former corporate hospital administrative executive; Abhijeet (Abhi) Mukherjee, former chief financial officer; and Corpus Sanchez International Consultancy Inc., all are being sued by LHSC in the second, $10-million lawsuit. jjuha@ DEFENDANTS NAMED IN $50-MILLION LAWSUIT FILED WEDNESDAY Dipesh Patel* Varsha Patel Paresh Soni Derek Lall* Nilesh (Neel) Modi* BH Contractors (owned by Soni) GBI Facilities Management (owned by Soni) GBI Data (owned by Soni) GBI Construction (owned by Soni) A numbered Ontario company, at 2026 Case Court 147 Pond Mills Inc. (Owned by Patel) A numbered Ontario company at 746 Baseline Rd. E. 139 Godfrey Drive Inc. (owned by Soni) 153 Godfrey Drive Inc. (owned by Soni) John Doe/Jane Doe *former LHSC employee DEFENDANTS NAMED IN $10-MILLION LAWSUIT FILED JUNE 13: Abhijeet (Abhi) Mukherjee, Hamilton* Bradley Campbell, Toronto* Jackie Schleifer Taylor, Toronto* Corpus Sanchez International Consultancy Inc. *former LHSC employee Read More Toronto & GTA Toronto Blue Jays Toronto & GTA Toronto & GTA Canada
Toronto Sun
10-07-2025
- Business
- Toronto Sun
LHSC names 5 former executives in $60M fraud lawsuits
Six former LHSC employees are named in the two lawsuits, including five former top executives From top left: Paresh Soni (LinkedIn); Jackie Schleifer Taylor (Free Press files); Derek Lall (LinkedIn); Dipesh Patel (Free Press files); Neel Modi (LinkedIn); and Bradley Campbell (LinkedIn) London Health Sciences Centre filed one of the largest fraud lawsuits in the history of Ontario hospitals on Wednesday, alleging a former senior executive masterminded a 'fraudulent scheme' involving procurement and he and others used funds they obtained to buy dozens of properties. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The hospital has filed two civil lawsuits, one for $10 million and the second for $50 million, against former hospital executives, businesses and other parties, including former chief executive Jackie Schleifer Taylor, alleging an executive committed fraud over 10 years, and when the alleged procurement frauds were found out, top administrators failed to act. The civil lawsuits filed in Ontario Superior Court, one in June and the other Wednesday, describe an alleged scheme involving construction and facilities management contracts in which the hospital was charged for work that wasn't done, or overcharged for what was done, with a few individuals pocketing the cash and using that money to buy real estate. This advertisement has not loaded yet, but your article continues below. The hospital alleges in one statement of claim it was defrauded of 'tens of millions' of dollars. 'LHSC claims damages and/or equitable compensation in respect of the amounts of these losses, damages and expenses. Full particulars will be provided prior to trial, but the quantum is provisionally estimated at $50 million,' the lawsuit filed Wednesday says. The lawsuit naming three former employees, two individuals, nine companies and two individuals identified as John and Jane Doe is seeking '$50 million plus further sums' in damages and $1.5 million in punitive damages. The former employees are Dipesh Patel, Derek Lall and Nilesh (Neel) Modi. Patel is the former executive, capital redevelopment and environmental operations at LHSC. Lall is the former director of facility management at LHSC while Modi worked at LHSC for nearly 11 years, the claim says. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The individuals are Patel's spouse Varsha Patel and Paresh Soni, described in the lawsuit as a 'close personal contact' of Patel's. 'Soni and Patel share multiple financial endeavours and personal connections, including common friends,' the claim says. The hospital filed a $10-million lawsuit in June against Schleifer Taylor, Brad Campbell, former corporate hospital administrative executive; Abhijeet (Abhi) Mukherjee, former chief financial officer; and Corpus Sanchez International Consultancy Inc. Victoria Hospital in London. Photograph taken on Wednesday, July 9, 2025. (Mike Hensen/The London Free Press) 'LHSC began investigating serious irregularities arising from certain procurement-related matters in or around the fall of 2024. The investigation revealed a fraudulent scheme to defraud LHSC through improper procurement practices that commenced in or around 2013,' the statement of claim filed Wednesday said. This advertisement has not loaded yet, but your article continues below. 'This action arises from a prolonged, deliberate, and co-ordinated fraud orchestrated by the defendants to systematically defraud LHSC of tens of millions of dollars through deception, concealment, and the abuse of trusted positions,' the lawsuit says. The $50-million lawsuit alleges after Dipesh Patel was appointed vice-president of facilities management at LHSC in 2013 he worked with others to defraud the hospital by awarding construction and facilities management contracts to several companies owned by Soni. Soni is the owner of the GBI group of three companies and a company called BH Contractors, the claim says. 'Safeguards at LHSC were flouted, circumvented, ignored, and/or frustrated in a manner that permitted the fraudulent scheme to occur for approximately a decade,' the lawsuit says. This advertisement has not loaded yet, but your article continues below. 'Patel conspired with the other primary defendants to perpetrate a fraud against LHSC by improperly facilitating the award of multiple major LHSC contracts to Soni's companies . . . . He did so by, among other things, abusing his position of trust as a senior executive of LHSC,' the claim says. Reaction to LHSC's $60M lawsuits alleging massive fraud Between 2015 and 2024, BH Contractors received $29.6 million from LHSC for general contractor services including window replacement, the lawsuit says. The $22 million the company received for a contract to replace windows at University Hospital was $10 million higher than BH Contractor's initial bid and exceeded an independent cost estimate by about $9.3 million, the claim says. This advertisement has not loaded yet, but your article continues below. 'LHSC has experienced multiple significant issues with the quality of the installation and of the windows themselves, resulting in issues with water leaks and insects,' the lawsuit says. Patel conspired with other primary defendants to create BH Contractors and to cause LHSC to award significant contracts over the course of 10 years, the claim says. Patel and other primary defendants in the lawsuit 'improperly' added BH Contractors to LHSC's vendor of record list by 'fraudulently' transferring the listing of another vendor on the list of companies from whom LHSC is authorized to procure goods and services to BH Contractors, the claim says. Patel also conspired with other primary defendants to create GBI and cause LHSC to award significant contracts valued at more than $11 million, the lawsuit says. This advertisement has not loaded yet, but your article continues below. Patel caused LHSC to retain GBI to provide consulting services with an initial purchase order in 2013 that was followed by numerous other orders, the claim says. Soni helped draft a 'competitive bidding exemption' briefing note that Patel submitted to justify the purchase order's exemption from competitive bidding, circumventing LHSC's procurement processes, the lawsuit says. In 2016, Patel and Lall were the only two evaluators for a facilities RFP that was awarded to GBI as three-year contract, the claim says. 'GBI was awarded the bid despite there being multiple deficiencies with its submission and qualifications, including non-compliance with insurance requirements, no valid Workplace Safety and Insurance board certificates, and a lack of relevant experience,' the lawsuit says. This advertisement has not loaded yet, but your article continues below. GBI received $11.2 million from LHSC for facilities management services between 2013 and 2024, the claim says. Patel has acquired 22 properties since 1998, some through numbered companies, valued at $9.4 million and 17 were purchased after BH Contractors was awarded the window replacement contract, the lawsuit says. Varsha Patel, Dipesh Pital's spouse, has acquired 11 properties valued at $4.2 million since 1996, the claim contends. Soni has acquired 43 properties since 2011 valued at $14.5 million, many owned by numbered Ontario companies, the lawsuit says. The lawsuit includes a list of 'suspicious property holdings' consisting of 98 properties in London and outside the city bought by people and companies named in the claim. This advertisement has not loaded yet, but your article continues below. 'The defendants have applied funds they derived from the fraudulent scheme . . . to purchase and pay down the mortgages and/or other charges on a large number of properties. As such, LHSC is entitled to a constructive trust over these properties,' the lawsuit said. A constructive trust is a remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights. Dipesh Patel was fired from LHSC in 2024 when he held the title of executive, capital redevelopment and environmental operations. He was earning an annual salary of $326,423, according to a provincial list of public sector salaries above $100,000. LHSC initially told Patel he would receive 12 months of severance but ceased making the payments in February 2025, the lawsuit says. This advertisement has not loaded yet, but your article continues below. The lawsuit alleges Lall, former director of facility management at LHSC who reported to Patel, was one of a number of individuals to whom Patel gave 'off-the-record payments . . . without any legitimate reason.' Lall was fired in 2023, the claim says. Modi worked at LHSC from September 2014 to February 2025, the lawsuit says. Modi reported to Patel when he was hired in 2014, the claim says. Modi was fired in February 2025 for his involvement in the alleged 'fraudulent scheme,' the lawsuit says. Statements of claim and statements of defence include allegations not yet tested in court. In an open letter to the community, LHSC supervisor David Musyj addressed the alleged frauds directly. 'I recognize this is a deeply disappointing moment. It's not who we are at LHSC and it's not a reflection of our team . . . . They are great people and provide great care, and I can tell you that each one of them is committed to our shared organizational value of accountability,' he said. This advertisement has not loaded yet, but your article continues below. 'As we look ahead, we are . . . strengthening our governance, operations, policies, procedures, and financial practices through the work of our recent organizational review and executive restructuring.' The hospital has posted links to the statements of claim on its website. The lawsuits are the latest development in what has been a tumultuous few years for LHSC. Musyj has been at LHSC since May 2024 when he was appointed by the province as supervisor. Schleifer Taylor, who had been chief executive since 2021, went on a medical leave of absence in November 2023 and the hospital announced in June 2024 she was no longer employed there. The board of directors announced her departure as the hospital wrestled with a rising deficit and dealt with the fallout of two trips by senior executives and staff and a planned third trip costing more than $470,000. This advertisement has not loaded yet, but your article continues below. In June 2024 the hospital reported its deficit will nearly double in one year, to $150 million in 2025 from $78.1 million in 2024. WE ASKED: How far does $60M go at London's largest hospital? All members of the LHSC board of directors resigned in September 2024. The following month, LHSC announced London police were launching a fraud investigation into the hospital's 'past financial practices.' London police released a statement Wednesday by Chief Thai Truong about the investigation. 'London Police Service continues to actively investigate allegations of fraud involving London Health Sciences Centre. We fully recognize and appreciate the significant public interest in this matter, as it involves an important institution within our community,' he said. This advertisement has not loaded yet, but your article continues below. 'Our financial crime unit is dedicated to conducting a thorough, fair, and meticulous investigation, understanding that complex financial crime cases often require substantial time and resources to reach completion.' LHSC explained its rationale for seeking damages and redress in the $50-million lawsuit filed Wednesday. 'LHSC supports the health and welfare of the community it serves. Condoning and ignoring the defrauding of this organization, in particular, merits an award of punitive and aggravated damages,' the claim says. 'In addition, the conduct and activities of the defendants represent a deliberate, high-handed and wanton denial and frustration of the rights of LHSC and were calculated to injure LHSC to the benefit of the defendants. As such, the actions merit an award of punitive, exemplary and/or aggravated damages.' This advertisement has not loaded yet, but your article continues below. The claim in the $10-million action states the damages are for 'breach of fiduciary duty, negligence, negligent misrepresentation, breach of contract, and wilful misconduct in an amount to be finally determined but presently estimated to be in the range of $10 million.' Essentially, the lawsuit filed June 13 in Ontario Superior Court alleges the three former executives named were aware of the alleged fraud and did not stop it. 'Beginning in or around April 2022, the defendants, alone or in concert with each other and/or third parties, condoned and/or intentionally ignored evidence that a fraud may be being perpetrated against LHSC,' the claim says. This advertisement has not loaded yet, but your article continues below. 'In addition to being negligent and a breach of their various duties as fiduciaries of LHSC, the actions of the individuals were in breach of each of their employment agreements, including the code of conduct and the standards to which they agreed to be bound. This behaviour also constituted wilful misconduct on the part of each of the individuals.' Jackie Schleifer Taylor (Free Press files) In April 2022, Schleifer Taylor was notified by a human resources executive that 'three witnesses raised concerns regarding potentially fraudulent behaviour in facilities procurement and construction contracting practices,' the claim says. The discovery was made during a workplace harassment investigation, the lawsuit says. Schleifer Taylor directed human resources to notify Campbell, but the two 'failed to notify LHSC's internal audit department' and the hospital board of 'concerns regarding fraudulent behaviour in facilities procurement and construction contracting practices,' the claim says. This advertisement has not loaded yet, but your article continues below. Schleifer Taylor and Campbell also did not notify LHSC's external auditors, Ernst & Young, and then permitted those suspected of wrongdoing to 'lead an engagement with PricewaterhouseCoopers into the review of rising construction costs, resulting in a 2023 report that failed to address or even acknowledge the existence of the allegations,' the lawsuit says. Further, in May 2022 Schleifer Taylor signed an LHSC annual representation letter without making any mention of the allegations and stated she had 'disclosed all instances of identified or suspected non-compliance with laws and regulations, including fraud,' the claim says. In December 2022, Abhijeet (Abhi) Mukherjee was also provided with a copy of the report and also failed to act, the lawsuit says. This advertisement has not loaded yet, but your article continues below. Mukherjee was hired in September 2022 as chief financial officer and fired in August 2024, the lawsuit says. Schleifer Taylor was hired in 2015 and named chief executive in 2021. Her employment ended in June 2024. Campbell was hired in July 2022 as corporate hospital administrative executive. He was fired in August 2024, the claim says. Before being hired, he worked for LHSC for six years as a consultant through Corpus Sanchez International Consultancy Inc. The claim also states Corpus Sanchez breached its contractual duties and obligations. The 2025-26 operating budget for London Health Sciences Centre is $1.6 billion, up from about $1.5 billion the previous year. One of Canada's largest acute-care teaching hospitals, LHSC operates three hospitals and has more than 15,000 staff. ndebono@ Read More NHL Toronto Blue Jays NHL Celebrity Golf
CBC
10-07-2025
- Business
- CBC
Alleged fraud worth $60M uncovered at London Health Sciences Centre
An audit has uncovered a decade-long fraud at the region's largest hospital network with the London Health Sciences Centre (LHSC) filing two separate lawsuits implicating five former executives, a contractor and companies hired to do work. The lawsuits total more than $60 million and allege that some executives knew about the scheme and did nothing to stop it. One of the lawsuits also links more than 90 "suspicious properties" worth almost $20M to three people involved in the alleged scheme, purchased after multi-million dollar contracts were awarded by the hospital. London police are now investigating, said David Musyj, the supervisor brought in to oversee an overhaul of the struggling hospital, which is projected to have a $150M deficit. "The Fraudulent Scheme was a calculated, multi-year campaign of deceit and theft, deliberately engineered to misappropriate public funds for personal and unlawful gain," the lawsuit that was filed Wednesday alleges. Court documents show LHSC's former vice president responsible for facilities, Dipesh Patel, who was terminated in August 2024, awarded multiple contracts over the years to his "personal contact" Paresh Soni, who ran seven different companies. Former Director of Facilities Derek Lall, who reported directly to Patel, is also named in the lawsuit. It's alleged the men were involved in what's described as actions that "flouted, circumvented, ignored and/or frustrated" the rules around procurement. The hospital lost $50 million, officials allege, when contracts were awarded despite conflicts of interest, inappropriate bids and inflated invoices for work that was never done. Executives complicit, lawsuit alleges Additionally, three executives are being sued because they allegedly knew about the fraud in April 2022 and did nothing about it, according to a second lawsuit filed for $10 million. The second lawsuit names Abhi Mukherjee, the hospital's chief financial officer from 2022 to 2024, Jackie Schleifer Taylor, who was the CEO from 2021 to 2024, and Brad Campbell, the hospital's corporate hospital administrative executive from 2022 to 2024. Before being hired by the hospital, Campbell also worked for six years as a consultant for a company called Corpus Sanchez International Consultancy Inc., and was performing various executive roles for the hospital. Corpus Sanchez is also named in the lawsuit. Among the allegations in the two lawsuits: Patel abused his position of trust as a senior executive and colluded with others to falsify documents, make payments for no legitimate reasons, inflated invoices, and charged for work that was not performed, the documents allege. Four people closely connected to Patel and nine companies operated by those people participated in the alleged fraud billed the hospital for window replacements, general contractor services and for diverting funds "for their own personal benefit." Money made from the fraud was used to buy more than 95 properties in London, including single-family homes, apartment buildings and townhouses. In April 2022, Schleifer Taylor was told about possible fraud in the facilities procurement and construction contracting departments, and told Campbell about it, but they didn't tell the board of directors, launch an investigation, or tell internal or external auditors. Mukherjee was told about the possible fraud in December 2022 but and also didn't launch an investigation. The executives allowed people implicated in the fraud to lead a review into rising construction costs, which led to a 2023 report that didn't address or even acknowledge the existence of the allegations. "As we vigorously pursue these civil cases and continue our forensic audit, we have also provided these findings to London Police Service as they continue their investigation. At this time, any other staff involved in this misconduct are no longer employed at LHSC," Musyj wrote in an email to hospital staff Wednesday. CBC News requested an interview with Musyj Wednesday but he was not available for interviews. The province told CBC News it will not comment while the matter is before the courts. "I recognize this is a deeply disappointing moment. This is not who we are at LHSC and it's certainly not a reflection of our team," Musyj wrote. Musyj also shared that a new whistleblower policy is in place, and reminded employees that they can provide confidential information.
CTV News
09-07-2025
- Business
- CTV News
BREAKING: London, Ont. hospital sues former staff, contractors for $60M+ in alleged fraud and negligence
(L-R) Dipesh Patel, Neel Modi, Paresh Soni, Derek Lall, are all named in a fraud lawsuit by London Health Sciences Centre. 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.
CTV News
09-07-2025
- Business
- CTV News
BREAKING: London, Ont. hospital sues former staff, contractors for $50M in alleged fraud
(L-R) Dipesh Patel, Paresh Soni, Derek Lall, Neel Modi, are all named in a fraud lawsuit by London Health Sciences Centre. 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 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 contractor 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 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.
