RCMP investigating fraud, breach of trust in Alberta health procurement scandal

EDMONTON · The RCMP is investigating potential fraud, breach of trust and money laundering in Alberta's health care procurement controversy, according to court documents filed this month. The documents reveal Ontario Crown prosecutors are assisting the Mounties in the politically sensitive probe. The investigation is connected to the wrongful dismissal lawsuit filed by Athana Mentzelopoulos, the former head of Alberta Health Services. The government has said she was fired for failing in her job and working to stop mandated health reforms.

In a letter dated Oct. 15, Crown prosecutor Tom Andreopoulos outlined the scope of the investigation. "Our office is responsible for the provision of advisory support and the prosecution of any charges that may arise from the ongoing Royal Canadian Mounted Police criminal investigation into fraud, breach of trust, and money laundering arising out of procurement processes and practices at Alberta Health and Alberta Health Services," Andreopoulos wrote. The letter, filed in Alberta court, is addressed to lawyers for the provincial government, Alberta Health Services and Mentzelopoulos.

The RCMP confirmed last year it was investigating health care procurement contracts but had not previously detailed the potential criminal offences under examination. Both the RCMP and Ontario's Ministry of the Attorney-General declined to comment, citing the ongoing investigation. The prosecutor's letter does not name any subjects of the investigation or elaborate on the specific allegations. The probe is one of multiple investigations sparked after Mentzelopoulos alleged she was fired for looking into sweetheart deals, high-level political interference and corruption in health services contracts. None of the allegations from either side has been proven in court. The government maintains Mentzelopoulos was dismissed for performance reasons and for obstructing health reforms.

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Andreopoulos's letter was filed by a lawyer for Mentzelopoulos following a court ruling last month. Justice Michael J. Lema ruled that most materials at issue in her lawsuit were privileged or confidential and ordered her to return or destroy those records. Her lawyer argued the prosecutor's letter shows her intent to retain records was not "ill-placed." The letter states the Crown is aware of the judge's decision and will ask the Alberta Court of King's Bench for help in handling a privilege review of materials seized by the RCMP.

The investigation has focused, in part, on contracts awarded to Edmonton-based medical supplier MHCare Medical Corp. The company received roughly $614 million in business from Alberta Health Services since 2020, including $70 million for children's pain and fever medication, only a third of which was delivered. Mentzelopoulos's lawsuit alleged that Jitendra Prasad, a senior purchasing official at Alberta Health Services, had a potential conflict of interest with MHCare. A court filing stated Prasad had an MHCare email address just before the agency entered into a contract with the company.

MHCare is owned by businessman Sam Mraiche, who has been reported to have social connections with Premier Danielle Smith and her cabinet. Mraiche has repeatedly denied any wrongdoing. In an unsigned letter to the government in April 2025, MHCare said suggestions it benefited from relationships rather than merit were "untrue and a plainly unfair characterization." In March, the RCMP executed searches at the offices of MHCare and Jaberson & Associates Inc., an accounting firm owned by Sam Jaber, who has acted as MHCare's chief financial officer. Jaber was appointed by Smith to the board of the Crown corporation Invest Alberta and took a leave of absence after the search. The involvement of Ontario prosecutors is notable, as provincial justice departments sometimes appoint prosecutors from other provinces for politically sensitive cases where a potential conflict of interest may arise. Andreopoulos's letter copies two other Ontario Crown prosecutors, Niall Gilks and Alana Rodrigo, who are also assisting. The letter notes that Edmonton criminal lawyer Alexandra K. Seaman has been tapped as a third-party "referee" to work through privilege issues related to the seized materials.

With files from CityNews, Global News and The Globe and Mail