Winnipeg dental group sues ex-office manager, alleging she faked insurance claims, overpaid herself

A group of Winnipeg hospital dentists are suing a former employee after she allegedly paid herself thousands of dollars in fraudulent insurance claims, cheques and unearned pay over a five-year period.

Associated Hospital Dentists, a dental group at Health Sciences Centre in Winnipeg, filed the lawsuit against its former office manager at Manitoba Court of King's Bench on Nov. 22. 

The dental group is seeking a minimum of $75,000 to repay the allegedly fraudulent expenses, insurance claims and extra pay. The group is also seeking general damages and a declaration from the defendant that the money was gained through fraud. 

In November 2023, the office manager was suspended from her job after the dental group discovered the alleged false insurance claims for both her and her husband, the statement of claim says. 

"Due to the nature of her employment duties, the defendant was in a position of trust," the claim says.

Her job gave her access to payroll and the authority to approve expenses, according to the suit.

The dental group started an internal investigation into the office manager's dealings and alleges she submitted 76 insurance claims for procedures that never happened between 2019 and 2023.

The office manager was fired from her job in December 2023. The dental group continued to investigate and found evidence she created and cashed in cheques from her employer, masking many of the payments as reimbursements, the lawsuit says. 

She used signature stamps on the cheques without their permission or knowledge of the signatories, the group claims. Over five years, the defendant allegedly filed 60 fake reimbursements, ranging from $125 to more than $2,000, according to the suit.

She also paid herself more than $24,000 in extra holiday and vacation pay beyond what she was owed, the dental group alleges.

Despite her employment contract stating she would work and be paid for 37.5 hours per week, the office manager allegedly paid herself for 40 hours per week, totalling more than $22,000 in extra pay, the lawsuit claims. 

The dental group hasn't recovered any of the funds the officer manager took and wants any money that's still not accounted for repaid, the claim says. 

No criminal charges have been laid, and none of the allegations have been proven in court. No statement of defence has been filed. 

CBC reached out to the defendant for comment but had not received a response prior to publication.