Three York University employees charges in $1.6 million fraud scheme

Three York University employees have been arrested in connection to an alleged scheme to defraud the Toronto institution of more than $1.6 million, Toronto police announced on Thursday.

Two men and one woman, all confirmed to be members of York University administration, are alleged to have been members of an criminal enterprise that has been targeting York University's billing department over the past four years.

Toronto police announced on Thursday that Vittoria Caparello, 51, Yossi Zaidfeld, 38, and Melissa Caparello, 27, were arrested on Wednesday for allegedly participating in a fraud scheme that bilked the school out of more than $1.6 million.

Details were scarce, but police confirmed the people were allegedly siphoning money out of the university through a fraudulent billing scheme. York University is said to have lost $1,603,529 in the process but announced that they had recovered the money.

A statement released by York University said the school had been alerted to the alleged fraud when a whistle blower stepped forward in October 2012.

"The University immediately contacted Toronto Police Service and we have co-operated with them during the course of their investigation. We engaged an external firm to conduct a forensic audit, the findings of which were provided to police," reads the statement.

"The University successfully engaged in action to recover the monies defrauded, plus costs. York University takes its fiduciary responsibilities very seriously as an institution entrusted with monies from our students and the public."

Vittoria Caparello, and Yossi Zaidfeld, both of Vaughan, Ont., face charges of fraud over $5,000. Melissa Caparello, 27, was charged with the possession of property obtained by crime.

A LinkedIn page under the name Vittoria Caparello suggests she is the manager of finance, business and operations at York University. A LinkedIn page under the name Melissa Caparello identifies her as an administrative assistant in York University's Faculty of Academic Studies. A LinkedIn page under the name Yossi Zaidfeld was recently disabled.

Police said the investigation is ongoing and that further arrests and charges are expected.

York University was recently the target of a $1.2 million fraud scheme in which two executives billed the school for fake goods and services.

The Globe and Mail reported that two employees were charged in 2012, but cleared of wrongdoing the following year. A university spokesperson told the newspaper that the two cases were not related.