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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.

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.