Accused in $11M scam faces new allegations

Federal worker who had senior IT role accused of stealing pandemic aid

TORONTO — A senior provincial employee alleged to have embezzled at least $11 million from the Ontario government is now accused of kickbacks in an alleged fraud worth at least $30 million, court documents show.

In an amended statement of claim approved on Friday, the province alleges Sanjay Madan received $10 million in secret commissions for steering government consulting contracts to certain companies he or an associate, Vidhan Singh, controlled.

“Over the course of the past 10 years or more, the plaintiff paid out over $25 million pursuant to the resulting (fee for service contracts),” the unproven claim alleges.

The government alleges Singh paid Madan $5 million in commissions, while other companies paid Madan a further $5 million for government contracts.

“Sanjay accepted some or all of the secret commissions in cash and/or caused some or all of the secret commissions to be paid or diverted into accounts controlled by him and/or by his companies.” the document states.

Earlier, a Crown lawyer said the Ontario government had yet to recover the more than $11 million in COVID-19 relief money the province accuses Madan of embezzling.

Government lawyer Christopher Wayland said it was wrong to say the missing money was now back in the province’s hands.

“There has been some discussion, not among counsel but elsewhere, to the effect that all of the money that we say has been taken pursuant to the fraud has been ‘repaid into the provincial coffers’,” Wayland told Justice Peter Cavanagh.

No criminal charges have been laid in the case.