Fraud Investigator calls on OPP to Investigate Daycare Licensing

TORONTO, May 1, 2014 /CNW/ - With events heating up with daycare licensing practices in Ontario, a radical turn of events has happened and which now puts the matter into a criminal perspective. Since the announcement of a $26 million lawsuit against the Ministry of Education by Mr. Gerald Jutsun, an expert fraud and security investigator, and also the President of Tiny Town Daycare, many other daycare operators have contacted him to express their fear and intimidation of daycare licensing practices and their inspection techniques and practices.

Pursuant to the Statements of Claim filed on April 9, 2014 against the Ministry of Education (the "Claim") (Court File No. CV-14-5011759), an affiliate claim against its licensing and compliance inspectors (Court File No. CV-14-501761) and public disclosure of the case, Mr. Jutsun was approached by over a dozen private daycare operators, all who have claimed similar and egregious practices that mirrored the claim by Tiny Town Daycare. These practices include intentional interference with management and operations, intent to defraud, defamation, malicious prosecution, breach of contract, and collusion and conspiracy.

Mr. Jutsun, who is the President of FSI Fraud Security Investigations, states that the matter is so dire that many of the respondent victims are afraid of coming forward with their experiences for fear of reprisal and intimidation by the Ministry of Education and their licensing inspectors. He further states that he has personally assured the victims that no harm or attack would be imposed upon them. "You would think these are like early Christians hiding in the catacombs in fear of Roman persecution," Mr. Jutsun says.

With the exception of one daycare operator, none to date are willing to come forward and publicize their experiences with the Ministry of Education's licensing officials.

Most of the daycare operators have not considered suing the government for fear of an immediate revocation of their operating licenses, and the obstacle of monumental legal costs. The result is that many are under duress, are working under provisional licenses and some have even forfeited their licenses and lost their daycare centers, with massive personal losses.

Mr. Jutsun, who is both an eminent fraud and security investigator and the President of Tiny Town Daycare as well as the President of Jutsun & Company Law Associates, believes the matter to be so serious that he is requesting the Ontario Provincial Police (OPP) to now intervene. In an open letter to Vince Hawkes, the Commissioner of the OPP, Mr. Jutsun is beseeching him to commence an investigation of criminal wrongdoing including fraud, corruption and collusion amongst daycare licensing officials and licensing inspectors.

The serious crisis was first brought to the attention of the Minister of Education, Liz Sandals, and the Official Education Opposition Critic, Rob Leone (MPP Cambridge), in December 2013. In a letter written to Ms. Sandals' office, Mr. Jutsun cautioned her of serious breaches of conduct and questionable practices that needed further scrutiny and oversight. The Minister never responded, and on April 9, 2014, Mr. Jutsun levelled a $26 million dollar lawsuit against the Ministry of Education, claiming a series of profound and shocking statements.

To date, the response from the Ministry of Education, through the Ministry of the Attorney General of Ontario, is requesting that Mr. Jutsun and Tiny Town Daycare discontinue their action and withdraw their Statements of Claim. However, no statement of defence has been filed to date.

Mr. Jutsun is prepared to deliver all findings and evidence amassed by FSI Fraud Security Investigations to the Ministry of Education and the Official Opposition, which he states will obviate their assertion that there is no evidence and that the claims are groundless and without basis. The Minister has yet to agree to the dissemination of all evidence that Mr. Jutsun is offering to deliver on a without prejudice basis. All evidence and testimonies amassed, and increasing with more daycare operators, will also be delivered to the OPP for review and dissemination.

As a result of the public release of the licensing daycare crisis, one daycare operator has come forward and expressed her grief and anxiety in what she calls "her living nightmare". Mrs. Ambereen Shaheed, the former President of First Choice Daycare and Montessori in Brampton, had originally bought the daycare and operated it for over a year when she had to renew the license. With the licensing renewal in June 2013, she was renewed with a provisional license expiring in the following month of July and citing that major capital investments and upgrades had to be effected.

With major capital expenditures executed, Mrs. Shaheed was still not granted a standardized license and instead was stalled with the same provisional license for another seven months. She was ultimately advised in January 2014 that her license was going to be revoked. Mrs. Shaheed looked to sell her daycare in haste and entered into negotiations with a purported buyer, but never consummated the purchase and sale of her daycare center. However, without completing the purchase of the daycare center, the new potential buyer was granted an operating license and began daycare operations.

Mr. Jutsun was made aware of the failure of the purchase of First Choice Daycare, and stepped in to remedy the situation by purchasing the business from Mrs. Shaheed. He informed Minister Liz Sandals that the daycare center was in dire circumstances, but that Tiny Town Daycare would continue the operations while a new successive license was issued. However, Mr. Jutsun recognized that a prior license had been granted to the potential buyer after a full site inspection, and assumed that therefore the site itself was Ministry-licensed.

On Tuesday, April 29, 2014, Ministry representatives responded that the Brampton center could only have a limit of 5 children within the center, contrary to the approved 71-child license. The following day, Ministry licensing officials once again entered the center, accompanied by Peel Regional Police officers to enforce their directive. Mr. Jutsun states that these are oppressive tactics on the part of the Ministry of Education, done to impose fear and intimidation on daycare operators and relying on the intervention and engagement of police forces to force operators to comply with their operatives. Furthermore, Mr. Jutsun also states that these actions have been motivated by ulterior motives.

Mrs. Shahid is preparing to launch a similar lawsuit against the Ministry of Education and its licensing officials and inspectors. Shahid states that the licensing and compliance process she encountered was egregious and oppressive. "The process is very confusing, not transparent and extremely biased and subjective," she says.

Mr. Jutsun states that the next step is whether the OPP will step in and commence an investigation into daycare licensing practices and its agents, and whether Premier Kathleen Wynne will endorse the action on one of her Ministries, or whether she will stay any action by the OPP.

Mr. Jutsun also states that the facts need to be disclosed and disseminated for the public interest. He considers this the most serious and egregious prejudicial action to be felled upon the safety and well being of over a thousand children in Ontario, and holds the government responsible for their negligent actions. He also maintains that the evidence is provocative and illuminating and that law enforcement needs to be called in to address the situation. The question is whether Premier Wynne will second that action.

SOURCE: JMG Publicist

For further information: Mr. Alex Gregory, Vice President of Media Relations, JMG Publicist, C: (416) 988-5110, P: (905) 274-8999,,


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