Province expands probe to other projects following alleged $11M theft of COVID-19 relief funds

Province expands probe to other projects following alleged $11M theft of COVID-19 relief funds

The investigation into the alleged embezzlement of $11 million of pandemic relief funds is being expanded to include past information technology projects at Queen’s Park, the Star has learned.

A Toronto couple and their two adult sons, who all worked as Ontario government computer specialists, are alleged to have been involved in the theft of millions of dollars in provincial COVID-19 aid.

Documents filed with the Ontario Superior Court say “some or all of” Sanjay Madan, Shalini Madan, their sons Chinmaya Madan and Ujjawal Madan, and their associate Vidhan Singh allegedly perpetrated “a massive fraud” to funnel cash to hundreds of bank accounts.

In a statement of claim, which has not been proven in court, the government alleges “damages for fraud, theft, conversion, and conspiracy in an amount estimated to be at least $11 million.”

Sanjay Madan, a director in the Ministry of Education’s iAccess Solutions Branch, was fired with cause from his $176,608-a-year job earlier this month. He was the IT leader of the government’s online Support for Families program (SFFP), which dispensed more than $300 million in the spring.

Families were given $200 for each child under 12 and $250 for each special needs children up to age 21. About 95 per cent of the missing cash was supposed to go to families with special needs children.

The government’s statement of claim alleges Sanjay Madan knew “how it worked, its strengths, its vulnerabilities, and any deficiencies” in the program’s ability to verify the identities of people seeking help.

After the program’s April launch, “over 400 new accounts at the Bank of Montreal were opened in the names of the Madan respondents,” the court documents allege.

More than $2.5 million in payments went to those accounts while at least another $8 million went to TD accounts, the documents allege.

Asked in July about that, the documents say Sanjay Madan did not claim there was “some sort of error or technical glitch on the government’s part, but rather … offered various incredible explanations or justifications for the payments and … suggested that the funds be returned.”

Ivana Yelich, Premier Doug Ford’s director of media relations, confirmed Thursday that “a comprehensive investigation into the previous work of the individual while he was employed in the (Ontario public service) is being conducted.”

Det. Staff Sgt. Sean Chatland, who is leading a team of seven Ontario Provincial Police anti-rackets investigators, emphasized that detectives “will follow the evidence.”

While Chatland could not confirm the Madans and Singh are subjects of the ongoing investigation, sources at Queen’s Park said a separate KPMG audit is looking into a slew of past of IT projects dating back to at least 2010.

That year, Sanjay Madan was in charge of a $4 million project to revamp the Ontario Student Assistance Program’s (OSAP) loan and grant disbursement application.

He won IT World Canada awards for his efforts to improve the system that disburses billions of dollars each year to hundreds of thousands of university and college students.

Former colleagues, who contacted the Star after reading about the investigation and who spoke confidentially for fear of reprisals, said Sanjay Madan “worked closely with the same contractors on project after project.”

“On a big IT project, you have to bring in contract workers for about $100 an hour in order to meet the deadlines,” said a former associate.

“Sanjay had his select team and they were really siloed away from other (IT) teams. He was very protective of them.”

Another former colleague said “unfortunately Sanjay wouldn’t share consultants’ names with (our) team when asked. It was very odd.”

A third person who worked closely with Sanjay Madan said “he was always on the phone in his office dealing with his tenants, because he owned so many properties around Toronto.”

Through his lawyer, Christopher Du Vernet, Sanjay Madan has not had any comment on the allegations.

Shalini Madan, who earned $132,513 last year, is the manager of E-Ministries Support at the Ministry of Government and Consumer Services. She was suspended with pay on Aug. 11.

Chinmaya Madan was technical product manager at the Ministry of Government and Consumer Services for three years before resigning in August. His LinkedIn profile says he now works at Microsoft in Seattle.

Neither Shalini Madan nor Chinmaya Madan have responded to repeated calls or emails. The Star has not been able to reach Singh, a Richmond Hill resident.

In a brief interview, Ujjawal Madan, who worked as a government contract employee on his father’s team, said he was aware of the allegations involving the family.

“I cannot comment at this time. It’s not a good time,” the Georgia Institute of Technology master’s student said Tuesday from Atlanta.

Officials at Georgia Tech, where tuition in his master’s program at the school of analytics is $20,000 (U.S.) a semester, reached out to the Star to say that the prestigious university is taking the allegations seriously.

“We’ve spoken with his academic adviser and he’s a wonderful student, but the student did not disclose this situation,” said Terrence Green of Georgia Tech’s career centre.

“We are not going to put the institution in jeopardy,” said Green, noting that students sign a strict “” at the school to ensure they “act according to the highest ethical standards.”

The university is now monitoring the investigation closely.

Three weeks ago, the provincial government obtained a court injunction to freeze the Madan family’s assets.

In a Nov. 6 affidavit, Sanjay Madan said he’s facing a cash crunch due to his assets being frozen.

He said he cannot access the $1,031,407 he made from selling a North York property on Sept. 29.

Robert Benzie is the Star’s Queen’s Park bureau chief and a reporter covering Ontario politics. Follow him on Twitter:

Toronto public health shuts down Etobicoke restaurant for allowing indoor dining in defiance of COVID-19 measures

As patrons packed Adamson Barbecue in Etobicoke on Tuesday, proudly defying rules to not eat indoors during the lockdown, city enforcement and Toronto police officers did nothing to stop the long line of customers from making its way inside.

Owner Adam Skelly vowed on social media to open on Tuesday as normal, creating the first major public test of new COVID-19 measures that came into effect Monday.

Restaurants are allowed to offer takeout and delivery, but are not allowed to have indoor or outdoor diners in Toronto under lockdown measures imposed by the province for at least the next 28 days.

Skelly’s restaurant stayed open for its regular hours, until 4 p.m., when the city announced that Dr. Eileen de Villa, the city’s medical officer of health, had ordered it closed under the provincial Health Protection and Promotion Act.

“Investigations require the gathering of all the facts before enforcement action can be taken. The city has now taken enforcement action, and the restaurant is closed,” the press release said, adding the restaurant is also under investigation for compliance with business licensing, zoning, public health, Ontario Building Code and Ontario Fire Code requirements.

Earlier, inspectors found the restaurant to be in contravention of the province’s Reopening Ontario Act, with indoor and outdoor dining service “with many patrons not wearing masks and not practising physical distancing.”

After the restaurant had been serving customers for nearly two hours, Toronto Police Insp. Tim Crone told reporters that though it was open illegally, officers would not be moving in to clear out diners.

“Obviously, by the sheer number of people that are here right now, we don’t have the ability to go in and physically remove everyone at this point and it would be unsafe to do so,” Crone said.

Public health and bylaw enforcement officers conducted an investigation, Crone said, with police on scene to “ensure public safety” and support the city officials.

Later in the afternoon, Staff Supt. Mark Barkley said Toronto police would work with city officials to ensure de Villa’s order is followed.

“If he opens tomorrow, we will be here, we will have a presence and we will ensure compliance with the order,” he said

Barkley said the police had a “misunderstanding of what we should do and how we should do it” on Tuesday and the direction to not move in to disperse diners was not the “appropriate direction.”

“Plain and simple, it was a mistake this morning.”

Barkley said that patrons dining inside the restaurant could have been fined under provincial legislation, but because of the “misunderstanding,” they weren’t. He said officers will be better prepared in future to deal with a similar situation.

There has been no information about possible fines for Adamson or Skelly.

Shortly after the restaurant opened at 11 a.m. for business, two bylaw enforcement officers, a public health inspector and two uniformed police officers could be seen entering the Queen Elizabeth Boulevard location to speak with employees, including an agitated Skelly.

Skelly, who shouted at reporters about staying off his property and warmly welcomed guests, later emerged from the restaurant saying he had not been fined and refused to speak to a reporter further.

Premier Doug Ford — who has previously branded people going to parties in violation of pandemic regulations as “reckless” or “a bunch of yahoos” — adopted a more moderate tone on Tuesday about Adamson.

“I just want the guy to shut down,” said Ford, who is taking heat for a lockdown that forces small non-essential businesses in Toronto and Peel to close while Walmart and Costco stay open because they sell food and pharmacy items.

“I’m not going to get up here and start pounding on a small business owner when the guy’s hanging on by his fingernails,” the premier added. “My heart goes out.”

But Ford reinforced the importance of following public health protocols with new cases of COVID-19 averaging 1,395 daily in the last week, near all-time highs.

“If everyone does what he does…you’re going to be asking me another question when we start hitting 2,000 or 3,000 cases a day. That’s the last thing we want to happen.”

Mayor John Tory also struck a more moderate tone, telling reporters that everyone is entitled to protest and that he doesn’t direct enforcement.

“As a general rule, we can’t have people deciding they’re going to take the law into their own hands,” he said.

He repeated that he believes the time for warnings is over and that the city should be “registering a serious message about the breaking of the law.”

Coun. Mark Grimes, who represents the area, was outside the restaurant on Tuesday.

“This is a relatively new restaurant — it opened a few months back. So either this guy is the smartest guy or the dumbest. I think it might be a publicity stunt, I’m not too sure,” Grimes said.

“Kind of concerning that some people don’t want to follow the rules.”

Outside the white painted building, a crowd started to form shortly before doors opened, with patrons mostly not wearing masks and few socially distancing. A few shouted vitriol at reporters, some using megaphones.

One man, who refused to give his name, claimed the test for COVID-19 was a “lie” and that the opening was not at all dangerous, instead criticizing journalists for publishing “false evidence.”

Another man, who also refused to give his full name, acknowledged dining indoors was potentially dangerous, but said he defended his and others’ right to choose for themselves.

Some wore Guy Fawkes masks and cheered as passing cars on the largely industrial strip next to the Gardiner Expressway drove by to honk in support.

One was a marked city of Toronto truck, the driver of whom fist-bumped several protesters. Brad Ross, the city spokesperson, said the employee was not a bylaw officer and that the city was investigating.

Skelly posted a video on the Texas BBQ restaurant’s official Instagram on Monday to tell followers the newly opened Etobicoke location would be opening for inside dining “against provincial orders” starting at 11 a.m.

“For those of you who have eyes to see why I’m doing this, thank you guys so much,” Skelly said.

“This is a risky move and you guys gave me the gas to do this.”

with files from Rob Ferguson and David Rider

Jennifer Pagliaro is a Toronto-based reporter covering city hall and municipal politics for the Star. Follow her on Twitter:

Traffic alert: Hwy. 89 closed in both directions at Hwy. 400 in Innisfil

Update: the hydro pole has been cleared and the road is re-opened.

A hydro pole has been knocked down and is sitting along Highway 89 at the Highway 400 bridge.

South Simcoe Police are asking drivers to avoid the area.

Crews are on scene.

The hydro pole was hit by a truck.

There were no injuries, police said.

Heather Scoffield: Chrystia Freeland will spend billions to fight COVID-19. This Toronto bar owner says there’s something he wants more than money

Until everyone is vaccinated, the best thing governments could do for tavern owner Harrison Mazis is give him clarity.

Even as Finance Minister prepares to roll out more aid for businesses in her mini-budget on Monday, and point to a huge multi-billion-dollar package of recovery money on the horizon, what Mazis says he needs most these days is a common understanding among government officials and authorities.

Duffy’s Tavern has stood in the same spot near Bloor and Dufferin for 70 years, one of the oldest licensed establishments in the city. But it’s barely standing right now, lurching through its second lockdown of the year and facing a bleak winter.

When Mazis heard the city’s mayor talk recently about giving restaurants and bars leeway to move outside, invest in patios and think about business differently, he did just that. He had boards and a tent structure set up along the side of his building, creating an outdoor eating area for his loyal, local clientele. Now, in addition to no customers, he is facing a pile of municipal infractions amounting to thousands of dollars in fines.

Freeland’s fiscal update on Monday will include more help for people like Mazis and other small business owners involved in hard-hit parts of the economy, such as air travel, tourism, accommodation and food services (but no full-blown airline bailout quite yet, for those keeping track at home).

It will also contain a range of estimates for the size of the stimulus package the federal government thinks will be needed for digging out of the recession, putting Canada in the same ballpark as other developed countries hoping to revive their economies. And it will set out some initial parameters for how it will be spent — while also committing to lots of public consultation between now and the federal budget in the spring.

But when Mazis jumped on to a riding-wide ask-me-anything Zoom call earlier this week with his MP, Julie Dzerowicz, he didn’t ask for money. He asked for coherence — a helping hand in steering through three levels of government trying, with an abundance of rules and money, to stop the virus and keep the economy from collapsing.

“We’re trying to do the right thing,” Mazis said afterwards in an interview. “We’re tired, we’re frustrated, we’re going broke, but we don’t know what to do. We’re handed a different set of bylaws every other day.”

At the federal level, there is heaps of money — hundreds of billions of dollars in subsidies, programs, credit and incentives for businesses and individuals alike. The that brings together Ottawa’s economic response shows 18 programs for individuals, 28 programs for business, 34 sector-specific supports, 11 programs for vulnerable groups, and six plans to transfer money to provinces.

Monday’s mini-budget will bring more — not just for businesses struggling to get through COVID-19 restraints, but also for broader pandemic challenges such as child care, vaccine efforts, long-term care and obtaining personal protective equipment.

All of this, of course, adds up to a bruising deficit that economists figure will be more than $400 billion this fiscal year. It will have to be whittled down quickly to be manageable, which means the COVID-19 supports will have to wind down by next summer, and stimulus spending will have to focus on fostering economic growth, which in turn will replenish government revenues.

But stimulus will also have to deal with more than just growth. Freeland is adamant that it address some of the underlying inequities exposed by the pandemic. Women in the workforce, visible minorities and gig workers have been slammed. She is also mindful about the government’s commitment to dramatically reduce greenhouse gas emissions and will likely have measures on Monday in hand for home retrofits and retraining of the workforce.

It’s a massive world-class response to a recession that has proven unpredictable in who it hurts and how badly, leading to a complicated and sometimes self-defeating web of bureaucracy.

Money for individuals was confusing at the beginning of the pandemic, as employment insurance morphed into the Canada Emergency Response Benefit, and now back again. It’s more streamlined now, but the next few months will bring their own layer of confusion as recipients try to sort through what they owe or are owed at tax time, says Carleton University’s Jennifer Robson, an associate professor in political management who has tracked the fine details of pandemic income support.

Dzerowicz and her staff find themselves frequently helping constituents track down forms, find the appropriate programs, and dealing with multiple levels of government on their behalf so that conflicts are stamped out and the money can flow to the right people.

That job won’t be any easier with Monday’s fiscal package. While the money is there in abundance, so is the virus, and so are all the various governments’ attempts to control both.

Muddling through to the other side of the pandemic will be expensive and difficult for all involved, not the least for Mazis. That vaccine can’t come soon enough.

Heather Scoffield is the Star’s Ottawa bureau chief and an economics columnist. Follow her on Twitter:

Orillia councillor eyes Conservative nomination

A two-term Orillia councillor has his eyes on the seat occupied by Simcoe North’s longtime MP.

Mason Ainsworth hopes to secure the Conservative Party nomination for Simcoe North in advance of the next federal election.

“I just want to help more people in our communities,” he said.

Ainsworth is filling out the nomination package and hopes to follow in the footsteps of incumbent MP Bruce Stanton, who is not seeking a sixth term in Ottawa. 

An individual must secure party approval before throwing his or her hat into the ring as an official candidate.

Once an application is approved, candidates must undergo an interview process.

“If you get through all of that successfully, then you are approved to run as a candidate in the nomination process,” Ainsworth said.

“As there is a minority government, we are unsure of when the federal election will be,” he added. “As a result, at this point in time, we are not sure when the nomination date will be.”

Should he secure the nomination, Ainsworth said he would continue to fulfill his council duties, but would likely take a leave of absence during the election period.


Simcoe County wants better response times for cardiac patients

Tiny Township deputy mayor Steffen Walma wants more effort put into saving people having heart attacks in the county.

During Simcoe County’s Oct. 27 committee meeting, he learned the target is to get a defibrillator to a patient within six minutes. That target applies to police, fire and paramedics — whoever is first on the scene.

And Simcoe County emergency responders are 56 per cent of the time. The results came from the annual Paramedic Services Response Time Performance report.

“Heart and Stroke mentions every minute you’re delayed is a 70- to 10-per-cent decrease in survival,” Walma said. “We’re doing well, but there’s always room for improvement.”

He suggested the county aim for a higher goal and work with municipal partners, such as fire and police, to make it happen.

Walma inquired about a pilot project to use drones to fly defibrillators to people in more remote parts of the county, which was approved last year.

“Given our support of the community during the COVID response, we weren’t as far ahead on this pilot project as we would’ve hoped,” said paramedic Chief Andrew Robert.

He noted the county is still looking into hiring a private company to do it, which is being tested in Peel Region, versus the county running the program itself.

“We’re also looking at use of a software tool to alert members of the community if there is a cardiac arrest in their area,” Robert said.

During the discussion, Adjala-Tosorontio deputy mayor Bob Meadows voiced his concerns about setting a new target.

“I’d hate to have an unrealistic goal,” Meadows said. “To me, it’s an impressive time considering the area that has to be covered. I’d hate to put extra pressure on paramedics.”

Oro-Medonte deputy mayor Ralph Hough said the focus should be improving service to the rural areas, not just Barrie and Orillia.

Jane Sinclair, general manager of health and emergency services, suggested council ask for a more detailed staff report, which would also give information about the public-access defibrillator program and education workshops.

Council agreed to get a staff report before boosting the cardiac arrest target.

Waterfront parkland plan a guide, not ‘gospel’: Orillia councillor

The ink was barely dry on a design plan for local waterfront parklands when city councillors found themselves cautioning Orillians that nothing in the document was absolute.

“We have to remember that this park is a park for all Orillians, and we want it to remain as such,” Coun. Pat Hehn said.

Council has now formally supported in principle a consultant’s design study for an area that includes Couchiching Beach Park and Centennial Park.

Within it are recommended measures that are causing concern among some residents, most notably a suggestion to close off Terry Fox Circle to traffic as part of a broader effort to make the area more pedestrian-focused.

Council would be wise to seek public input on individual components of the plan as they are brought forward for consideration, Coun. Rob Kloostra said.

“I think we need to do a lot more,” he added.

Lifelong resident Wally Clark told Simcoe.com he enjoyed cruising around Terry Fox Circle in his truck, but wouldn’t oppose its closure so long as adequate parking was available nearby.

“Having more room in here (for pedestrians) would help,” he said.

Coun. Tim Lauer did not support approving the plan in principle, arguing that it sets in motion a process that will see staff craft budgets as part of a 10-year capital plan and prioritize projects.

“I think it’s a little premature to be approving this in principle and just assuming that it doesn’t mean anything,” Lauer said.

Hehn suggested adding a preamble to the plan, acknowledging that aspects of it may be changed as current and future councils consider individual projects.

“People don’t realize that it can be changed and they take it as gospel,” Hehn said.

Council decided a preamble was redundant as the consultant’s recommendations were just that.

Accepting the plan in principle “does not commit us to do anything that is in the report,” Coun. Ted Emond said.

“It lays out a model for the future,” he added.

Council will decide whether to support individual components of the plan as they are brought forward by staff at budget meetings in the intervening years, Emond said.

‘This is actually my second win’: Innisfil lottery player scratches his way to top crossword prize

The words wrist, quit, and gate were ones that helped bring Innisfil’s Edward Warne a $250,000 top prize with INSTANT CROSSWORD DELUXE.

“This is actually my second win this year,” Warne said, while at the OLG Prize Centre in Toronto to pick up his cheque. “I won $100,000 on another INSTANT game back in March.”

The 67-year-old retired computer consultant was at home playing his lottery game when he started matching words. “I pulled out my phone to check my ticket using the OLG Lottery App, then ran downstairs to show my daughter because I couldn’t get the words out fast enough,” he said.

Next, Warne called his wife with the news.

“She was crying and laughing – I had to go get her.”

“My pulse has been going nuts since this happened,” he said. “I have a lot of mixed emotions. With big money comes big responsibility.”

Warne plans to enjoy a more comfortable retirement and travel when the pandemic is over.

INSTANT CROSSWORD DELUXE is available for $10 a play and the top prize is $250,000. Odds of winning any prize are 1 in 3.45.

The winning ticket was purchased at Sobey’s on Jans Boulevard in Innisfil.

‘It’s about keeping the community healthy’: Orillia’s Santa Claus Parade cancelled

Santa Claus is not coming to town.

The annual parade that starred a certain jolly old soul is cancelled in Orillia for 2020, the popular event the latest casualty of the global pandemic.

“It’s about keeping the community healthy,” said Doug Bunker, event organizer and chief elf. “It will be back some time, but it won’t be this year.”

Hosted by the Orillia District Chamber of Commerce, the Santa Claus Parade draws scores of ruby-cheeked revellers to downtown Orillia to watch elaborate floats cruise the city’s core in a kickoff to the Christmas season.

That wasn’t about to happen this year, given the challenge of ensuring physical distancing at an event that traditionally sees throngs of spectators squeezed shoulder to shoulder.

Bunker said he had hoped to host a sort of “reverse” parade in a barricaded portion of the parking lot at the Orillia Square Mall.

The plan was to have members of the public drive single-file past a lineup of stationary floats, allowing passersby to appreciate these pre-winter wonders from the safety of their vehicles.

“Instead of the parade driving by the people, the people drive by the parade,” Bunker said. “We diligently tried to make it safe.”

The proposal had the support of the mall and Canadian Tire, but did not satisfy the public health unit’s concerns regarding gatherings, he added.

“I think with what’s going on now, they are being very cautious,” Bunker said in reference to the rising number of coronavirus cases.

With the parade a no-go this year, the chamber is now working on a separate event, ‘Light up the Season,’ for the weeks leading up to Christmas.

Orillia-area businesses and residents will be invited to decorate their buildings and houses with lights, with residents encouraged to visit businesses and tour neighbourhoods before voting online for the most impressive displays.

Cash awards will be given for best holiday-season display (small business), best lighting display (commercial business) and best home-lighting display.

“Just to say, ‘thanks for making it a little bit brighter in Orillia’, since we’re toning things down,” Bunker added.

The Light up the Season event will begin mid-November and likely run until Christmas.

New Tecumseth faces 3 more minister’s zoning order requests for large-scale projects in Alliston, Tottenham

More developers are lining up to ask the Town of New Tecumseth to support their plans to request a Minister’s Zoning Order (MZO) to approve large-scale developments in Alliston and Tottenham.

The details of the requests, which the town has not made public yet, relate to Totten Investment Inc.’s Coventry Park Neighbourhood Plan and Rock Garden Estates Inc. Hawthorne Glen for Tottenham, and San Marco in Lamis Ltd.’s proposal for Huntington Woods in Alliston. All of the proposed developments are located outside the settlement area boundaries for both communities.

. The documents submitted to the town state the development would include a range of housing types, including affordable options, and also a 200-bed-long-term-care facility.

The Rock Garden Estates is proposed to be built at a 70-hectare property located on the north side of the 5th Line, west of Tottenham Road. . The plan says the property would be used for employment uses and commercial uses along the 5th Line.

The proposal also says two manufacturing companies have expressed interest in expanding their operations at the property, which would bring almost 2,000 “good paying” jobs to the area.

The north end of the property toward the 6th Line would be used for residential and community uses, including “expanded natural areas” and also for “alternative forms” of housing.

The Huntington Woods proposal at , is described as a residential community designed for seniors of all stages in life, including those requiring long-term care. The plan includes 336 residential units, including single and semi-detached homes, along with townhomes, plus a 120-bed long-term-care facility and community centre.

The MZO is a tool at the disposal of the province that allows the minister of municipal affairs and housing to designate land uses, which in turn lets developers bypass the normal planning approval process at the municipal level. While MZOs used to be reserved for extraordinary cases, the Ford government has been using them more frequently in the past two years. Since early October, the province has issued them 26 times.

An MZO removes the requirement for any public consultation, along with the possibility of appealing the land use designation at the Local Planning Appeal Tribunal (LPAT).

While the minister of municipal affairs and housing is the one who ultimately approves MZOs, the ministry told Simcoe.com it doesn’t consider requests for approval unless they have the full backing of the municipal council.

Councillors will be asked to provide comments on the three requests at an upcoming committee of the whole meeting.

Simcoe.com asked New Tecumseth Mayor Rick Milne to explain how he thinks the town should deal with the influx of MZOs, and any others that might be coming.

“We will deal with each one separately, sending it to staff to make a report when all information has been gathered, and send it back to council to make a decision,” he said.

These requests follow on the heels of FLATO’s MZO request for a 995-unit development outside Beeton’s settlement boundary that proposes to provide attainable housing for seniors.

Council voted 7-3 in favour of the proposal at a special meeting held Oct. 19, but council is expected to discuss the issue again at the Nov. 4 meeting to finalize a list of conditions the town wants to include in its letter of support to the province.