The Financial Services Regulatory Authority of Ontario (FSRA) has imposed $260,000 in penalties against the Gibson Wellness Centre Inc., the Gibson Wellness Group Ltd. and the Gibson Centre’s principals, Sallamma Navaratnam and Thevendrarajah, known as Krish Thavem.

Specifically the regulator revoked the service provider licenses for both companies and imposed a $200,000 administrative penalty against the Gibson Centre and an administrative penalty of $10,000 against Navaratnam for failing to take reasonable steps to ensure that the operations of the clinic where she was named as the clinic’s director, were carried out in accordance with the law.

Thavem was fined $50,000 for submitting numerous falsified invoices to insurers, charging for services not rendered. “The false invoices reflected services by two health practitioners who deny providing the services and when the clinic was closed,” FSRA states in an announcement about the order.

“Gibson Centre and Krish Thavem contravened the Insurance Act by providing false and misleading statements or representations to an insurer,” they add. “Gibson Centre and Gibson Group are not suitable to be licensed based on this conduct.” 

Navaratnam, meanwhile, had been the sole director of the Gibson Centre since May 2018. At the time FSRA published its notice of proposal to impose administrative penalties, she was named as the principal representative. 

“On December 2, 2021, FSRA received a complaint from Équité Association on behalf of Intact Insurance Company, Royal and Sun Alliance Company of Canada, TD Home and Auto Insurance Company, Desjardins Financial Security Life Assurance Company, Allstate Insurance Company of Canada, Aviva Insurance Company of Canada, CAA Insurance Company, Co-operators General Insurance Company alleging that Gibson Centre billed for services not rendered and overbilled for services provided to patients,” the notice of proposal states. “Équité is a not-for-profit organization which supports the property & casualty insurance industry in Canada by providing analytics and investigative support to identify insurance fraud.” 

The centre reportedly submitted numerous treatment plans and invoices through the Health Claims for Auto Insurance (HCAI) system for treatment provided by a psychologist who provided a sworn declaration that they did not provide the services, as the clinic was closed at the time due to the COVID-19 pandemic. All told, the clinic invoiced $205,564.53 and received $183,033.83 from Certas Direct Insurance company, Allstate and Intact.

Similarly, the clinic submitted $15,619.24 worth of massage therapy invoices for services provided by a therapist who was not employed or in the clinic on the days in question. “It is not clear how much of these invoices were paid out to Gibson Centre,” the notice states.

Both the psychologist and the massage therapist believed Thavem to be the manager of the clinic and had never Navaratnam. When Navaratnam was called on by the regulator to attend an interview, the regulator was informed by the Gibson Centre that Navaratnam was elderly and in poor health.

In addition, Thavem signed the clinic’s paychecks, lease agreements, was the point of contact for the clinic, the signing officer for bank accounts and was the main point of contact with insurers.

The notice of proposal then details Thavem’s criminal record. 

“From July 1998 to April 2001, Thavem had 15 convictions registered against him for fraud, forgery, assault, possession of property obtained by crime, unlawfully entering a dwelling house, and obstructing a peace officer. Thavem was subject to a deportation order in January 2002 due to his criminal record,” the notice of proposal continues. “In September 2017, Thavem was convicted of assault and received a suspended sentence and 18 months probation. On April 11, 2023, FSRA issued a summons to Thavem requiring him to attend for an interview. Thavem did not respond to the summons.”