$60M Fraud Uncovered at London Health Sciences Centre: Executives, Contractor Named in Lawsuits

A massive alleged fraud scheme—worth over $60 million—has been uncovered at London Health Sciences Centre (LHSC) in Ontario. It involves five former executives, a contractor, and several companies.

The lawsuits follow a forensic audit that revealed widespread misuse of hospital funds and procurement violations going back nearly a decade.

Two Lawsuits Filed, 95 Properties Linked to Scheme

The hospital filed two civil lawsuits this week. The first lawsuit, worth $50 million, accuses former senior staff of colluding with a contractor to rig contracts, inflate invoices, and charge for unfinished work.

The second lawsuit, valued at $10 million, claims that three top executives ignored early warnings about the fraud and failed to take action.

Among those named:

• Dipesh Patel, former VP of Facilities, who allegedly awarded contracts to personal contact Paresh Soni, owner of seven companies.
• Derek Lall, former Director of Facilities, also accused of knowingly participating.
• Abhi Mukherjee, Jackie Schleifer Taylor, and Brad Campbell, who allegedly failed to report or act on known issues between 2022–2024.
  

Authorities suspect that buyers used proceeds from the scheme to purchase over 95 real estate properties in London, including homes, townhouses, and apartment buildings.

Public Funds Allegedly Misused

Court documents describe the case as a “calculated, multi-year campaign of deceit and theft” involving rigged bids and fraudulent payments. Officials claim the group bypassed procurement rules and used taxpayer money for personal enrichment.

The scheme also involved at least nine companies, many linked to those directly participating in the fraud. These companies billed clients for window replacements and general contracting services but never delivered them.

Executives Accused of Cover-Up

The second lawsuit claims that in April 2022, CEO Schleifer Taylor and administrator Brad Campbell were told about the suspicious activity. However, they allegedly did not alert the board or launch any investigation. Later in December 2022, CFO Abhi Mukherjee was informed but also took no action.

Even marketing professor Marvin Ryder admitted the ad fooled him at first—he only realized the truth after a closer look.

London Police Now Investigating

London Police Service has launched a criminal investigation based on the findings of the hospital’s forensic audit.

“This is not who we are at LHSC,” Musyj said in a message to staff, noting the introduction of a new whistleblower policy to encourage internal reporting.

Mukherjee and Campbell have since filed wrongful dismissal lawsuits against LHSC.

The Ontario government declined to comment on the matter, citing the ongoing legal proceedings.

What are your thoughts on how hospitals can better prevent internal fraud and protect public funds?

More…

• https://www.cbc.ca/news/canada/london/alleged-fraud-worth-60m-uncovered-at-london-health-sciences-centre-1.7580914 
• https://lfpress.com/news/local-news/breaking-lhsc-files-60m-lawsuits-alleging-fraudulent-scheme 
• https://www.cbc.ca/lite/story/1.7580914