Company accused of fraudulent billing, false reporting as part of Skills Development Fund
The Ontario government is suing an HR technology and training vendor for $25.9 million, alleging fraudulent billing and false reporting tied in part to the province’s controversial Skills Development Fund (SDF).
In a statement of claim filed in the Ontario Superior Court of Justice, the province alleges Toronto-based Keel Digital Solutions and its counselling subsidiary Get A-Head breached contracts with both the Ministry of Colleges, Universities, Research Excellence and Security and the Ministry of Labour and submitted “false and misleading quarterly reports of their corporate performance measures” between 2022 and 2025.
According to the claim, reported by Global News, “The false reports caused the Crown to pay the corporate defendants millions of dollars that they otherwise would not have been paid.”
The government is seeking $22.3 million on behalf of the Ministry of Colleges and Universities and $3.2 million for the Ministry of Labour, as well as $100,000 in punitive damages from Keel’s directors. The company’s funding was previously subject to a forensic audit, which has been referred to the Ontario Provincial Police for investigation, Global News reported.
The allegations have not been proven in court.
Estimates allegedly claimed as actual expenses
The statement of claim alleges Keel represented estimated expenses as actual expenses and failed to report unspent funds, rebates, tax credits and interest earned, despite contractual requirements to do so. The government further claims that first-class flights, international office space and fine dining were concealed “in generic line items and presented as eligible project costs.”
The province also alleges that Keel and its leadership attempted to obstruct oversight. “The Crown pleads that the Individual Defendants directed, facilitated, and then tried to cover up the Corporate Defendants’ False Reports given to (Ministry of Colleges, Universities, Research Excellence and Security),” the claim states. “The Individual Defendants also took steps to obstruct the Crown’s subsequent attempts to audit and investigate the False Reports.”
It further alleges that claims for funds included “exaggerated, false, incomplete and misleading reporting of Performance Measures and financials in the False Reports,” according to Global News.
Previously, two HR directors claimed they were fired for refusing to hide illegal hiring at a Georgia construction firm.
Employer says it will file counterclaim
In a statement cited by Global News, Jay Fischbach, COO at Keel Digital Solutions and a named defendant, said the Ontario government’s case is “deeply flawed, built on misstatements and outright inaccuracies.” He added: “Keel Digital has never been involved in any fraudulent activity, and we fully expect the government of Ontario to be compelled to retract its claims, apologize, and answer for the recklessness and malice that drove this case.”
Global News reported that Keel’s role as a recipient of the Ministry of Labour’s $2.5‑billion Skills Development Fund (SDF) has been under scrutiny at Queen’s Park. The province’s auditor general has previously found the SDF “was not fair or transparent and doled out money to applicants ranked low by bureaucrats.”
While most of the money cited in the lawsuit relates to a separate Ministry of Colleges and Universities contract, $2.7 million in question is tied directly to a Skills Development Fund agreement, Global News reported.
Labour Minister David Piccini has faced sustained criticism from opposition parties over the Keel file, particularly after media reports that one of the company’s lobbyists is a close friend of the minister and that he attended the lobbyist’s wedding.
