After the program was launched in April, “over 400 new accounts at the Bank of Montreal were opened in the names of the Madan respondents,” the government’s court action alleges.
“Over $2.5 million in Support for Families payments were then deposited into those BMO accounts. The BMO payments alone would be equivalent of payments to a family of more than 10,000 children,” the court documents say.
“It is likely that similar payments were made into accounts at other banks. At TD there are over 30,000 payments totalling approximately $8 million with the same or similar characteristics and payment patterns...” it continues.
The unusual banking activity raised suspicions with the authorities.
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, their elder son, worked as a technical product manager at the Ministry of Government and Consumer Services for three years. He resigned after being suspended with pay on Aug. 11 and his LinkedIn profile indicates he is now at Microsoft in Seattle.
Ujjawal Madan, their younger son, was a contract employee with the Ministry of Education’s iAccess Solutions Branch.
His father allegedly hired him last year “despite a clear direction not to from his superior,” who was concerned about a potential conflict of interest.
Also named in the province’s action is Vidhan Singh, the sole signing officer for a company called Wang & Associates Professional Corporation that lists his Richmond Hill home as its headquarters.
A firm called Intellisources Inc., of which Sanjay Madan is the sole director, is alleged to have received 20 Support for Families payments to its Bank of Montreal account.
Investigators are also examining Newgen Solutions, of which Shalini Madan is an officer, and 10583570 Canada Ltd., a corporation that lists the Madans’ Toronto home as its head office.
According to the court documents, “Sanjay Madan directed a change to a payment rule within the computer application” to override the government’s limit on five electronic fund transfers into a single bank account.
He told an underling “this change was ‘highly confidential and only known by directors and above’ that the change was requested by” Education Minister Stephen Lecce’s office “to address complaints from Children’s Aid Societies.”
However, Lecce’s office “made no such request,” the court documents say.
There were allegedly 10,283 deposits made into the family’s Bank of Montreal accounts, including $693,650 for Sanjay, $690,950 for Shalini, $615,200 for Chinmaya, $596,700 for Ujjawal, and $4,950 for Intellisources Inc.
Asked in July about the payments, 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,” the documents say.
In a six-page affidavit on Nov. 6, Sanjay Madan said he cannot mount a legal defence because his assets are frozen, including $1,031,407, net proceeds of the sale of a North York house he sold on Sept. 29.
toronto.ctvnews.ca
