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:
