Manulife and TTC reach deal to settle Healthy Fit benefits fraud case

TORONTO — Manulife Financial Corp. says it has reached a settlement with the Toronto Transit Commission related to the Healthy Fit benefits fraud case. Terms of the agreement were not disclosed.

Following a tip, the TTC began an investigation in 2014 that found that Healthy Fit, a health-care products and service provider, was issuing fake or inflated receipts.

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Employees would submit the falsified claims to Manulife, the company's insurance provider, collect the money, then share the payment with Healthy Fit.

The TTC had sued Manulife alleging the company did not have the appropriate fraud management controls in place, a claim the insurance company denied.

Manulife says it continues to strengthen and invest in its fraud program, which includes proactive efforts and prevention through its trusted provider network.

Adam Smith, the proprietor of Healthy Fit, pleaded guilty to two counts of fraud over $5,000 and was sentenced to two years in prison in 2017.

This report by The Canadian Press was first published Nov. 13, 2019.

Companies in this story: (TSX:MFC)

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