A hospital in southwestern Ontario is suing five of its former executives, alleging two of them were involved in a “fraudulent scheme” involving improper procurements, while the others knew about the alleged fraud and failed to act.
A hospital in southwestern Ontario is suing five of its former executives, alleging two of them were involved in a “fraudulent scheme” involving improper procurements, while the others knew about the alleged fraud and failed to act.
The London Health Sciences Centre says police began investigating the hospital’s past financial practices late last year, while it began its own forensic audit of its finances dating back to 2013.
A statement of claim filed in court alleges former members of the hospital’s executive team were involved in fraud relating to its procurement and construction contracting practices, including awarding contracts with inflated pricing to companies owned and operated by the hospital’s then-vice president of facilities management.
Also named in the lawsuit is a defendant who is the head of a London, Ont., contracting company and described as a “close personal contact” of one of the executive team members.
Another statement of claim alleges three other executives, including the hospital’s former CEO and president, failed to inform the hospital’s auditors and board of directors of the alleged fraud.
None of the allegations have been tested in court.
This report by The Canadian Press was first published July 10, 2025.
The Canadian Press