TORONTO - The Toronto Transit Commission is suing Manulife Financial for alleged negligence in connection with a benefits fraud scheme that first came to light three years ago.
To date, 170 TTC employees have been dismissed or have resigned or retired to avoid dismissal, and 10 former employees are facing criminal charges for their part in the alleged fraud.
In a statement of claim -- filed in the Ontario Superior Court of Justice -- the TTC alleges Manulife Financial did not have appropriate fraud management controls in place nor were there systems in place to detect and analyze unusual trends or patterns that might indicate fraud or abuse.
It maintains that Manulife breached its duties of care, which contributed to losses suffered by the TTC.
The TTC says it is seeking up to $5 million in reimbursement and damages.
The allegations in the statement of claim have not been proven in court.