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London Health Sciences Centre Uncovers $60-Million Procurement Fraud, Sues Former Executives

Forensic auditors uncovered roughly $60 million in suspect transactions, prompting lawsuits against five former executives.

Overview

  • An external forensic audit identified alleged procurement fraud spanning 2013 to 2024 at LHSC’s facilities management department.
  • LHSC filed two civil actions seeking $60 million in damages from five ex-executives, a contractor and several related companies.
  • The lawsuits allege a former vice-president steered inflated contracts to companies he controlled and that other leaders breached their fiduciary duties by failing to report the scheme.
  • London Police Service has maintained an active fraud investigation since October 2024 based on the audit’s findings.
  • Under provincial supervision for a $150 million operating deficit, LHSC has dismissed all implicated staff and is overhauling governance and financial controls to restore accountability.