Claimed money was for knee braces
A 27-year solid waste division worker at the City of Toronto was fired after he cashed a cheque from an insurance company for knee braces that were never purchased.
Joe Pugliatti received a cheque in 2012 for $4,314 from one of the city’s benefits providers, Manulife, that was supposed to go to the Canadian Institute of Orthopedics for two knee braces.
A prescription was issued from the institute on April 30 for the braces. Eventually, Pugliatti was issued an insurance cheque on Sept. 6 that was intended to fund the braces. It was cashed on Sept. 14.
The owner of the institute was being investigated for fraud by Toronto Police in 2012, but he died before any charges were laid. Police notified Manulife to monitor any transactions involving the organization.
In December 2013, Manulife investigator Deborah Vittie-Pagliaro spoke via phone to Pugliatti about the cheque. A transcript of the taped call indicated suspicious behaviour from Pugliatti when asked about where the money was supposed to go.
“(The institute owner) wanted $1,000 at the first month, $1,000 the second month, and $1,000, and I said, ‘No, a little bit at a time I’ll give you, until you do what I want.’ He was supposed to fix my feet,” said Pugliatti.
However, he later said he thought the conversation was about a $475 claim for orthopedic shoes a few months previously.
In July 2014, Pugliatti was again interviewed — this time by city management — about the cheque. Pugliatti claimed he cashed the cheque but the money went to his supplier who never did provide braces. He said his supplier was former city worker James Smith.
But Pugliatti then said he never did deal directly with the institute. Smith’s role was to act as the supplier.
He was to give Smith $2,000 upfront, then the remaining money once he received the braces. “He’d have to give it to his friend, and then I’d get my brace,” said Pugliatti during a subsequent interview a few weeks later.
He also said the printing and signature on the Manulife claim was not his and he didn’t recognize the handwriting.
Pugliatti reimbursed Manulife with a cheque for the total amount after the second interview. He said he was told by the company it was part of a fraud so he claimed he wanted to return the money.
On Dec. 2, 2014, he was dismissed via a letter written by Derek Angove, senior manager, citing a “fundamental breach of trust.”
The union, Canadian Union of Public Employees, Local 416, grieved the decision, arguing Pugliatti was an innocent party to a fraudulent arrangement. As a long-tenured worker, making a good salary, it was unlikely Pugliatti would participate in such a scheme, said the union.
However, the city countered and said Pugliatti gave multiple versions of his side of the story, which spoke to his credibility.
Arbitrator Lorne Slotnick dismissed the grievance. “On the balance of probabilities, Pugliatti was a willing participant in the benefits fraud.”
Even though Pugliatti said the claim form was not his, it is unbelievable to think he had no part in its creation.
“I find it highly unlikely that his personal information —including his correct birthdate and especially his unique Manulife benefits plan number — would show up on that form without his co-operation,” said Slotnick.
Pugliatti reimbursed Manulife, said Slotnick, but that was after some guidance was given.
“While he did eventually pay back the money to Manulife, it appears from the interview notes that this was only after the union advised him to do so. Given the many opportunities he had already had to back out of the scheme or admit his involvement, the repayment was too late to count significantly in his favour.”
Reference: Toronto (City) and Canadian Union of Public Employees, Local 416. Lorne Slotnick — arbitrator. Omo Akintan for the employer. James McDonald for the employee. March 20, 2017.
