FSRA bans clinic, citing its ties to clinic suspended for insurance fraud

Ontario’s financial regulator has revoked the licence of a health care service provider, accusing it of providing the regulator with false information to obscure its ties to a clinic that had its licence revoked for providing fraudulent billing to insurers.

The Financial Services Regulatory Authority (FSRA) revoked the licence of Warden Wellness Centre Ltd. and imposed an administrative penalty of $10,000 on its principal, Anusuya Gobinathan.

“Warden Wellness provided false, misleading and incomplete information to FSRA…and its past conduct affords reasonable grounds for belief that it will not carry out its business in accordance with the law or with integrity and honesty,” FSRA states in a June press release announcing the penalty.

In a notice of proposal issued in September 2024, FSRA cited Warden’s ties to Gibson Wellness Centre Inc. and Gibson Wellness Group Ltd., which had their licences revoked in December 2023. The Gibson clinics were represented by Thavendrarajah (Thavem) Krishnan.

Gobinathan applied for a licence as a health care provider about a week after Gibson Wellness had its licence revoked and an administrative penalty was levied against its principal owner, Thavem.

Health care providers under Ontario law must submit billing to insurers using an electronic billing system known as Health Care for Auto Insurance (HCAI). FSRA issued its penalties against Gibson and Thavem for causing “serious economic harm by submitting fraudulent invoices and charging insurers for services not provided,” as FSRA states in its notice of proposal regarding Warden.

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The regulator accused Warden and its principal, Gobinathan, for failing to disclose its ties to Gibson on its licensing application. Specifically, FSRA states in its Notice of Proposal: “Warden Wellness has taken over the business of Gibson Wellness, which were subject to revocations by FSRA. Evidence of this includes:

• Thavem’s name appears on a door inside the offices of Warden Wellness and it appears he works there.
• The telephone number on invoices for Warden Wellness is the same as the telephone number for Gibson Centre, which is different from the telephone number provided on the [licence] application.
• Warden Wellness operates out of 7130 Warden Avenue, Unit 606, Markham, Ontario, the premises previously used by Gibson Wellness. The operating address was not disclosed on the application for licence.
• Several health care practitioners who worked at Gibson Wellness work at Warden Wellness.
• Eight claimants who previously attended Gibson Wellness continued their treatment with Warden Wellness.
• Warden Wellness was incorporated three days after the previous [Notice of Proposal] was issued against Gibson Wellness and applied for a licence eight days after FSRA revoked the licenses of Gibson Wellness.”

When the regulator interviewed Gobinathan, FSRA says she could not answer why Thavem’s name still appeared on a door inside the premises of the Warden clinic. Nor could she answer questions about how HCAI worked — which, as the regulator noted, is “a key component of the licence” — or the legal responsibilities of a clinic’s representative.

In its Notice of Proposal, FSRA said it “has reasonable grounds to believe that Thavem is an interested person in Warden Wellness, and, because of his past conduct, the business systems and practices of both licensees will not be carried on in accordance with the law or with integrity and honesty.

“Thavem has installed other individuals as principal representatives to hide his involvement in previous clinics from the regulator, and it appears he is doing so with Warden Wellness.”

FSRA issued its final order on June 24, 2025, rescinding Warden’s licence and fining Gobinathan $10,000 for making false and misleading statements in the clinic’s licence application. It noted Gobinathan had not appeared at hearings established to appeal the order.

David Gambrill

David has twice served as Canadian Underwriter’s senior editor, both from 2005 to 2012, and again from 2017 to the present.