London Health Sciences Centre (LHSC) is suing several former employees and contractors for $50 million in damages, plus $1.5 million in punitive damages, alleging a decade-long fraudulent scheme involving manipulated procurement, inflated invoices, and undisclosed conflicts of interest. A separate lawsuit also targets former executives and a consulting firm for $10 million for allegedly concealing evidence of fraud.
BREAKING: London hospital sues former staff, contractors for $50M in alleged fraud
London
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TL;DR: Key points with love ❤️London Health Sciences Centre (LHSC) is suing several former employees and contractors for $50 million in damages, plus $1.5 million in punitive damages, alleging a decade-long fraudulent scheme involving manipulated procurement, inflated invoices, and undisclosed conflicts of interest. A separate lawsuit also targets former executives and a consulting firm for $10 million for allegedly concealing evidence of fraud.
Trending- 1 2013-2024: Alleged fraudulent scheme active, involving millions in contracts.
- 2 2015-2024: BH Contractors received nearly $30 million from LHSC.
- 3 2013-2024: GBI Construction received more than $11 million from LHSC.
- 4 2022: Confidential report raised concerns about possible fraud, allegedly ignored by executives.
- 5 August 2024: Dipesh Patel terminated.
- 6 September 2024: LHSC terminated agreement with GBI Construction.
- 7 Late 2024: LHSC uncovered the alleged fraud during a probe.
- 8 February 2025: Neel Modi terminated for cause.
- 9 April 2025: Derek Lall terminated retroactively.
- 10 June 2025: LHSC terminated agreement with BH Contractors.
- 11 Recently: LHSC filed statements of claim in court for both lawsuits.
- LHSC is seeking $50 million in damages and $1.5 million in punitive damages from the first group of defendants.
- LHSC is seeking $10 million in damages and $100,000 in punitive damages from the second group of defendants.
- Dipesh Patel was terminated in August 2024.
- Neel Modi was terminated in February 2025.
- Derek Lall was terminated retroactively in April 2025.
- Agreements with GBI Construction and BH Contractors were terminated in September 2024 and June 2025, respectively.
- The allegations have not yet been tested in court, and no statements of defense have been filed.
What: London Health Sciences Centre (LHSC) is suing former executives and contractors for alleged civil fraud, breach of fiduciary duty, and unjust enrichment, seeking $50 million in damages and $1.5 million in punitive damages. Additionally, LHSC is suing three former executives and a consulting firm for $10 million, alleging they ignored or concealed evidence of fraud.
When: Over more than a decade (2013-2024 for the main alleged fraud); a confidential report raising concerns was made in 2022; alleged fraud uncovered in late 2024; lawsuits recently filed.
Where: London, Ontario, Canada (specifically London Health Sciences Centre and University Hospital).
Why: LHSC alleges a fraudulent scheme involving manipulation of procurement processes, submission of fraudulent documents, inflated invoices, and improper awarding of contracts to companies with undisclosed conflicts of interest. The second lawsuit alleges former executives failed to act on or concealed evidence of fraud.
How: The alleged scheme involved former executives (Dipesh Patel, Paresh Soni, Derek Lall, Neel Modi) and construction firms (BH Contractors, GBI Construction) manipulating procurement, inflating invoices, and using aliases/forged documents. Patel allegedly directed contracts to Soni's companies. The second lawsuit alleges former CEO Jackie Schleifer Taylor, former CFO Abhijeet Mukherjee, former executive Bradley Campbell, and Corpus Sanchez International failed to inform the board or auditors about a confidential report and falsely affirmed no known fraud issues.