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Ontario recovers $11M in COVID-19 added benefits allegedly taken by senior civil servant accused of fraud

TORONTO — A former senior staff with the Ontario federal government has repaid extra than $11 million in COVID-19 added benefits the province alleges he took fraudulently, his lawyer reported Friday.

The unproven civil claim named Sanjay Madan, who experienced a senior IT job and assisted produce the computer system application for making use of and approving the benefit for people with children.

In a quick assertion, Madan’s attorney Christopher Du Vernet confirmed his consumer experienced manufactured the repayment.

“In point, the province has recovered in excessive of the money it presently alleges Mr. Madan took from the Families Guidance Method,” Du Vernet said.

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“However, it is also trying to find its lawful fees, interest and punitive damages, so the action carries on.”

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In its untested lawsuit filed past drop, the province alleged Madan, his wife and two grownup young children who all labored for the Ontario authorities in data technological innovation defrauded the province of at the very least $11 million.

The civil claim, which also sought $2 million in punitive damages, accused them and some others of illegally issuing and banking cheques below the plan that aimed to defray the price of kids learning at residence.

“The Madan loved ones exploited their positions of employment with Ontario and distinctive accessibility to the (application) and payment processing process,” the governing administration alleged in the assert. “The plaintiff was uniquely susceptible to Sanjay, specifically with respect to the integrity of the…application.”

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Late Friday, the Ministry of the Lawyer Basic reported funds experienced “now been seized” pursuant to a judicial get and were being being held by the court pending litigation of the province’s promises.

“The authorities normally takes these allegations seriously,” ministry spokesman Brian Gray said. “(It) has retained KPMG to perform a complete investigation, and that investigation is ongoing.”

Du Vernet claimed his client “deeply regrets” his actions and was awaiting success of medical views on his problem.

In accordance to the lawsuit, Madan and his loved ones opened extra than 400 accounts at the Lender of Montreal among April and May. They then deposited all over 10,000 cheques created out to fictitious candidates with thousands of non-existent young children beneath the support software.

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Most deposits have been designed more than a four-7 days period starting up on May 25, coinciding with a rule transform that permitted extra than five payments to be built to an applicant. The authorities alleges Madan either sparked the rule adjust or understood about it and took benefit.

In other court docket filings, Madan is claimed to have explained to the governing administration that he could make clear “all of this” and that he has “helped several households.”

The govt experienced served discover it supposed to seize any cash the spouse and children allegedly received fraudulently and received a court docket get to have their financial institution accounts turned above to the court docket pending the end result of the lawsuit.

The government also received a court purchase freezing the family’s property, which involved a list of attributes in Toronto. The governing administration said it will be in court future 7 days to extend the freeze.

Madan was fired in November.

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