TORONTO — The Ontario government has launched a lawsuit against a company connected to the province’s Skills Development Fund, alleging fraudulent misrepresentation and seeking to recover more than $25 million in public funds.
The province is suing Keel Digital Solutions, which was contracted to deliver a student mental health program for the Ministry of Colleges and Universities. The lawsuit alleges the company submitted false information that led to improper payments over several years.
According to the statement of claim, the government alleges that between 2022 and 2025, Keel provided “false and misleading” quarterly reports on corporate performance metrics. Those reports were used to justify payments made under the contract, the province claims.
In addition to the civil lawsuit, the Ontario Provincial Police is investigating matters related to Keel’s funding after the Ministry of Colleges and Universities referred the findings of an internal audit to police.
The allegations have not been tested in court. Keel Digital Solutions did not immediately respond to a request for comment on Friday. A company spokesperson has previously said the firm has complied with all applicable laws and contractual obligations.
Keel has faced heightened scrutiny in recent months as one of the recipients of funding through Ontario’s $2.5-billion Skills Development Fund, which falls under the Ministry of Labour, Immigration, Training and Skills Development. The province’s auditor general has previously found the fund’s selection process was neither fair nor transparent.
The issue has also drawn political controversy. Labour Minister David Piccini faced sustained criticism from opposition parties during the fall legislative session, with calls for his resignation after media reports revealed one of Keel’s lobbyists is a close personal friend of the minister.
The Ontario government says it is pursuing the lawsuit to protect public funds and ensure accountability in the use of taxpayer money.