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BREAKING: London, Ont. hospital sues former staff, contractors for $50M in alleged fraud

LONDON, ONTARIO, JUL 9 – Lawsuits claim over $60 million lost to contracts with conflicts of interest and inflated invoices, with some executives allegedly aware but failing to act, according to hospital audit.

  • London Health Sciences Centre filed two lawsuits accusing former executives and contractors of a decade-long fraud in procurement and construction contracts discovered in late 2024.
  • The lawsuits arise from a confidential 2022 report highlighting fraud concerns and claim that certain executives were aware of the misconduct but failed to take steps to halt or disclose it.
  • LHSC terminated agreements with GBI Construction in September 2024 and BH Contractors in June 2025, claiming inflated invoices, forged documents, and irregular bids inflated losses to about $50 million.
  • The lawsuits seek over $60 million in damages, citing properties worth nearly $20 million bought after awarding contracts, and include a call for $1.5 million in punitive damages.
  • LHSC emphasized that this fraud does not reflect its team, is vigorously pursuing civil cases, continues forensic audits, and has shared findings with police who are still investigating.
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BREAKING: LHSC files $60M lawsuits alleging 'fraudulent scheme'

London Health Sciences Centre filed one of the largest fraud lawsuits in the history of Ontario hospitals on Wednesday, alleging a former senior executive masterminded a “fraudulent scheme” involving procurement and he and others used funds they obtained to buy dozens of properties.

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The London Health Sciences Centre (LHSC) in Ontario has filed a lawsuit against several former executives and contractors, accusing them of defrauding tens of millions of dollars through fraud and seeking $50 million in damages and $1.5 million in punitive damages.

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World News broke the news in United States on Wednesday, July 9, 2025.
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