London hospital uncovers $60M in alleged financial fraud

Officials at London Health Sciences Centre say a forensic audit of the hospital network’s finances by an external third party has uncovered an estimated $60 million in fraud.
In an update Wednesday, hospital supervisor David Musyj says through an investigation they identified fraudulent activity between 2013 and 2024, and alleges previous members of the executive team knew about the practices and failed to act.
The hospital network has now filed two lawsuits totalling $60 million, which implicated five former executive team members, a contractor, and several companies that were contracted to do work.
“The Fraudulent Scheme was a calculated, multi-year campaign of deceit and theft, deliberately engineered to misappropriate public funds for personal and unlawful gain,” the lawsuit alleges.
The lawsuit alleges that those involved submitted fraudulent documents to LHSC as part of a bidding and payment process and failed to declare a material conflict of interest. It goes on to say that those involved then awarded contracts to parties despite conflicts of interest and submitted inflated invoices for work that was never performed.
The lawsuit also points to three of the people involved owning at least 76 suspicious properties holding total over $28 million in value purchased during the period the alleged fraud occurred.

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A statement of claim has been filed against Dipesh Patel, the previous vice-president of Facilities, Derek Lall, Paresh Soni, Nilesh Modi, Varsha Patel, and several named companies in the amount of $50 million.
Additionally, a second statement of claim has been filed against the hospital networks previous president and CEO, Dr. Jackie Schleifer Taylor, Bradley Campbell the former corporate hospital administrative executive, and Abhi Mukherjee, the previous corporate services executive/CFO, as well as the consultancy firm Corpus Sanchez International Consultancy Inc., for breach of fiduciary duties.
The hospital says Mukherjee, Schleifer Taylor and Campbell are no longer with the organization and were paid according to their employment contracts and legal agreements. However, given the alleged findings, it is pursuing repayment in the collective amount of $10 million.
The statement of claim alleges that the fraudulent activity was reported to Schleifer Taylor, Campbell and Mukherjee, and they failed to take action in their “fiduciary duties as executive leaders of the hospital by not informing LHSC’s internal auditor, external auditors, and Board of Directors.”
Musyj called the alleged frauds a “deeply disappointing moment.”
“It’s not who we are at LHSC and it’s not a reflection of our team,” he said.
Musyj says the financial audit is ongoing and that all findings have been handed over to the London Police Services as they continue their investigation.
London police posted on X in October 2024 that it had initiated a fraud investigation relating to past financial practices at LHSC.
At the time, LHSC wrote a post saying the police probe is “in response to concerns raised by London Health Sciences Centre.”
The hospital network’s financial mismanagement has been in the spotlight for quite some time, with a projected operating deficit of $150-million operating deficit expected for 2025.
In late September, LHSC’s entire board of directors resigned following public criticism over the hospital’s spending.
Musyj, who was appointed supervisor at LHSC in 2024 by the provincial government and acts as interim CEO, says other staff involved in the alleged misconduct are no longer employed at LHSC.
None of these allegations have been proven in court.
— With files from Global News’ Emily Passfield and Aaron D’Andrea
© 2025 Global News, a division of Corus Entertainment Inc.


A new poll by Leger has found that Quebec residents are the happiest in Canada.
The web survey of nearly 40,000 Canadians found that Quebecers rated their happiness at an average of 72.4 out of 100, which is well above the national average.
New Brunswick followed Quebec with an average of 70.2, while Manitoba and Prince Edward Island finished at the bottom of the list.
Mississauga, Ont. had the highest happiness rating of the 10 largest cities, while Toronto was lowest.
Montreal finished second in the category.
The survey found that 49 per cent of respondents said their happiness level was unchanged over the past year, while 23 per said they were happier and 28 per cent said they were less happy.
“These results reveal a population that is both resilient and tested, affected by everyday uncertainty and challenges,” Leger’s executive summary read. “Happiness, while holding its ground overall, shows signs of fragility.”

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The survey found that people in the 18-to-24 and 24-to-34-year-old categories were more likely to report improved feelings of well-being, even if their overall happiness score remained below the national average.
In contrast, people in the 35-to-44 and 45-to-54 age brackets were more likely to report their happiness had deteriorated.
“There is a sense of well-being emerging among younger age groups,” the summary read. “However, this also highlights the importance of supporting adults in mid-life, who are more vulnerable to the pressures of working life.”
Quebec, New Brunswick and Newfoundland and Labrador were the three provinces with happiness levels above the national average of 68.7. They were followed, in descending order, by Saskatchewan, Nova Scotia, Alberta, British Columbia, Ontario, Manitoba and P.E.I. The territories were not included in the survey.
In the survey of the 10 largest cities, Mississauga and Montreal finished ahead of Hamilton, Calgary, Brampton, Ottawa, Edmonton, Vancouver, Winnipeg and Toronto, in that order.
Women reported slightly higher happiness levels than men, at 69.4 versus 68.0.
Leger says the overall results confirm “a level of happiness that is relatively high but stagnant or even slightly down compared to the pre-pandemic period.”
To get the results, Leger surveyed 39,841 Canadians aged 18 and up between March 31 and April 13.
Online surveys cannot be assigned a margin of error because they do not randomly sample the population.
© 2025 The Canadian Press

Ontario Provincial Police are set to host a town hall in Quadeville, Ont., this evening to answer questions from residents about an attack on an eight-year-old child that was initially linked to an animal.
Police have arrested a 17-year-old boy in the case and he faces charges of attempted murder and sexual assault with a weapon.
Members of the small community 170 kilometres west of Ottawa say they were in shock after hearing about the arrest and hope to get clarity at today’s event in the town’s community centre.
Local resident Christine Hudder says she wants to know how police came up with the animal attack theory and why families were told for days to keep their children indoors.

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The victim was found with life-threatening injuries on June 24 after she was reported missing, and remains in hospital.
Police say they are planning to give as much information as possible to locals given that an investigation is still underway.

A Burlington, Ont., mother was unsettled to discover that an old photo of her children had been used in a fraudulent GoFundMe that attempted to elicit donations in connection the recent Texas floods.
Julie Cole told Global News that a friend had contacted her on social media to say that an old photo of her six children was being used in an attempt to collect ill-gotten gains.
“She reached out to me and she was like, ‘Hey, here’s a link to a GoFundMe. Sorry this has happened to you, but obviously a picture of your kids has been used without your consent and it’s being used for a GoFundMe to raise money, to help a family dealing with the Texas floods,’” she said.
Cole explained that the fake GoFundMe, which has since been removed by the company, was looking for donations to support a widowed mother of six kids in connection.
At least 120 people have died while more than 100 others remain unaccounted for as a result of the flooding, including 27 children and councilors from Camp Mystic.
“They were trying to raise $40,000 because of the three daughters had been victims of the Texas floods,” Cole said. “And the way it was presented felt very much like they were part of maybe that girl’s camp.”
Julie Cole told Global News that a friend had contacted her on social media to make that an old photo of her six children was being used in an attempt to collect ill-gotten gains.
Provided
Cole said once the listing was sent to her, she immediately contacted GoFundMe to get the fundraiser taken down.

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By Wednesday morning, the company had done so and in a statement to Global News, GoFundMe said that the fundraiser did not receive any donations and the account has been banned from creating any further fundraisers on the platform.
“GoFundMe has the most robust donor protection processes of any platform of our kind. We have round the clock trust and safety support, humans and technology making sure funds will get to where they are intended,” the statement offered.
After contacting the company, Cole said she shared the incident on her social media pages to raise awareness.
“So I did put it on my Facebook and I put it in my LinkedIn as like a heads-up learning experience kind of thing and there was a lot of outrage,” she said.
Cole also noted that while she is disappointed by the incident, she is well aware that her troubles are miniscule in comparison to those affected by the flooding.
“I do feel a little bit in myself that what I’m feeling is in no way comparable to what the actual families are feeling who have gone through the tragedies of the flooding,” she said.
The photo came from an old blog post she had written 16 years ago. Cole can date the picture as the baby in the photo is now getting ready to go for his driver’s test.
“I’m one of those, like, OG mommy bloggers from 20 years ago. So my kids have been on the internet. They have been sort of in the public eye,” she explained.
“And I know the risk is out there. And I think parents need to remember that, that their kids’ photos can be just screenshotted and used without consent. So there’s one lesson.
“I felt a little, well, very unsettled about it, particularly because of what it was being used for.”
In addition to being a parenting blogger, she also helped found Mabel’s Labels, which offers washable labels for kids clothing and other school items, in an effort to keep them out of the lost and found.
Julie Cole and her six kids in 2025.
Provided
Being a spokesperson for the company while raising six kids keeps her in the parenting sphere and she offered some other advice to parents about the images and social media.
“I think parents just have to be mindful and aware that once it’s out there, you know you’d like to think you’ll get consent or you’ll give consent if somebody asks or they want to use it, but people will just take it and they can just take,” she said.
“You have to be especially careful now with AI, because these photos can be altered.”
She also warned parents to check with their kids as they get older to see if they are OK with pics being posted and that people should be mindful of where they are sharing their donations.
“Another lesson out of this is people need to really be cautious and know where they’re putting their fundraising dollars,” Cole said.
© 2025 Global News, a division of Corus Entertainment Inc.
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