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LHSC Seeks $60-Million in Fraud Claims and Unveils Board Reforms

External experts are guiding revised bylaws to strengthen oversight after a decade-long procurement fraud was uncovered.

This home on Denlaw Road in north London is owned by GBI Data, a company owned by Paresh Soni, LHSC says in $50-million lawsuit filed July 8, 2025. The lawsuit lists 50 properties owned by Soni and two other defendants and companies they own or control. Photo taken on Thursday, July 10, 2025.  (Jonathan Juha/The London Free Press)

Overview

  • LHSC filed two civil suits on June 13 and July 9 seeking $10 million and $50 million from former executives and associates accused of orchestrating a ten-year procurement fraud scheme.
  • The $50 million statement of claim seeks a constructive trust to freeze 76 properties valued at $28.1 million that defendants allegedly bought with misappropriated hospital funds.
  • No full statements of defence have been filed yet in either lawsuit, though several defendants have submitted notices of intent to defend in Ontario Superior Court.
  • Governance reforms unveiled by LHSC include revised board bylaws, mandatory director orientation, a multi-year internal audit plan and stricter vendor accountability, guided by healthcare leaders Janet Davidson, Kevin Smith and Ann Corbett.
  • London Health Sciences Foundation is bracing for a potential decline in donations as the high-profile fraud allegations and civil suits erode public trust.