Three former senior leaders at London Health Sciences Centre (LHSC) have filed statements of defence in response to the hospital’s $10 million lawsuit alleging they failed to act on concerns about a potential fraud scheme. The lawsuit, filed last summer, claims former president and CEO Dr. Jackie Schleifer Taylor, former chief financial officer Abhijeet Mukherjee and former executive Bradley Campbell breached fiduciary duties, were negligent and engaged in wilful misconduct after a confidential 2022 report raised concerns about possible fraud in procurement and construction contracts. In her statement of defence, Schleifer Taylor denies all allegations and says she was never made aware of what the lawsuit describes as an “Additional Report” raising concerns about fraud. She says that in April 2022, after receiving a separate workplace investigation report related to personnel matters, she directed her human resources executive to seek legal advice and relied on that advice. Taylor also argues the lawsuit shouldn’t move forward because of a separation agreement she signed when she left in June 2024 and because more than two years have passed since the events in question. She has filed a counterclaim, alleging LHSC broke the terms of her departure agreement by publicly sharing details about her exit, and she is seeking damages. Mukherjee, who was hired as corporate services executive and CFO in September 2022 and terminated without cause in August 2024, denies any knowledge of or involvement in fraud. In his defence, he argues the report in question was completed before he was hired and that he was instructed to keep it confidential. He also claims LHSC has not provided evidence linking him to the alleged damages and says the lawsuit was filed outside the two-year limitation period. Mukherjee has filed a separate wrongful dismissal lawsuit against LHSC and alleges the hospital’s claim is ‘retaliation’ for that action. Meanwhile, Campbell, who worked as a consultant and later as an employee between July 2022 and August 2024, also denies wrongdoing. He says concerns about possible fraudulent activity surfaced during a 2022 workplace harassment investigation and that he recommended the issue be brought to the executive team. Campbell maintains LHSC launched its own fraud investigation and that he was not responsible for overseeing it. Since the matter is now before the courts, LHSC declined a request for an interview. In a statement to CTV News, the hospital confirmed it has reviewed the recent defence pleadings. In part, the statement from Supervisor David Musyj read “the pleadings themselves underscore fundamental governance breakdowns that existed at the time.” Statement from David Musyj London Health Sciences Centre (LHSC) has received and reviewed the recent defence pleadings related to our investigation into past procurement practices. With respect to the defendant Corpus Sanchez International Consultancy Inc., LHSC has been made aware it has filed an assignment in bankruptcy pursuant to the Bankruptcy and Insolvency Act. While these matters will ultimately be determined by the courts, the pleadings themselves underscore fundamental governance breakdowns that existed at the time, including a lack of insight into fiduciary accountability and the duty to directly address and escalate serious concerns without delegating responsibility, particularly where issues of potential fraud were raised. LHSC has been actively addressing these matters since the appointment of a Supervisor by the Minister of Health through independent forensic reviews, strengthened internal controls, clarified executive accountabilities, and comprehensive governance and leadership reforms now underway. Given the active litigation, LHSC will not comment further on the specifics of the pleadings. We remain focused on accountability, transparency, and rebuilding trust with the community, while ensuring that current leadership structures include clear decision-making authority, mandatory reporting requirements, and robust oversight mechanisms consistent with the fiduciary responsibilities of senior leadership. We want to be clear that assertions attempting to attribute responsibility to currently employed LHSC team members are not supported by the facts. Statements of defence CTV News reached out to the lawyers representing Taylor, Mukherjee, and Campbell. Mukherjee’s lawyer declined to comment. As of publication time, CTV has not received a response from Taylor or Campbell’s legal team. None of the allegations in the lawsuit statement of claim and defence statements have been tested in court.
