A hospital in southwestern Ontario, the London Health Sciences Centre (LHSC), has initiated a lawsuit against five of its former executives. The lawsuit alleges that two of these executives were involved in a "calculated, multi-year campaign of deceit and theft" tied to improper procurement practices. The other three executives are claimed to have been aware of the fraudulent activities but failed to take any action.
According to a press release from LHSC, local police began investigating the hospital’s financial practices late last year. In parallel, the hospital launched a forensic audit of its financial activities that dates back to 2013. This internal investigation aims to examine the complexity of the claims surrounding the alleged fraud, particularly in relation to procurement and construction contracting practices.
The lawsuit, filed this week in court, names former executives Dipesh Patel and Derek Lall as primary defendants in the fraud allegations. The statement of claim asserts that these individuals engaged in deceptive practices, including the awarding of contracts at inflated prices to companies owned and operated by Patel, who previously served as vice president of facilities management.
The court document details how Patel allegedly orchestrated this fraud in collusion with other individuals. These actions purportedly included circumventing procurement protocols, falsifying documents, making unauthorized payments, inflating invoices, charging for work not performed, and creating fictitious identities to hide those involved in the fraudulent activities.
Furthermore, the fraudulent scheme is described in the statement as a "calculated, multi-year campaign of deceit and theft," engineered to misappropriate public funds for personal and unlawful gain. The court document paints a detailed picture of how the defendants manipulated their positions to facilitate this sustained deceit.
In addition to Patel and Lall, another statement of claim filed last month includes allegations against three other former executives, notably Jackie Schleifer Taylor, the hospital's previous CEO and president. This claim indicates that these executives became aware of the fraud as early as April 2022, following a report concerning alleged workplace harassment that unearthed potential fraud within the hospital's operations.
Three whistleblowers cited in the report raised concerns about the hospital's procurement and construction contracting practices. The statement of claim alleges that, despite having "full knowledge" of these serious allegations, the executives did not disclose the findings to the hospital's auditors or board of directors, thus allowing the fraud to continue unimpeded.
Other executives mentioned in the claim include Abhi Mukherjee, the former chief financial officer, and Bradley Campbell. The statement of claim also underscores that none of the allegations made against the former executives have yet been substantiated in court.
As of now, the court records do not indicate whether the defendants have filed statements of defense. Additionally, no legal representation for the defendants has been publicly listed in the documents. In response to the situation, LHSC supervisor David Musyj expressed deep disappointment, emphasizing that the alleged fraud does not reflect the integrity of the hospital’s remaining team.
Musyj acknowledged the gravity of the situation, stating that staff members involved in the misconduct no longer hold positions at the hospital. He assured the community that the hospital administration is committed to implementing measures to prevent a recurrence of such events in the future.
