A medical supply company caught up in allegations of corruption surrounding Alberta surgical contracts had its office in Edmonton searched by the RCMP this week.
Officers, both in uniform and plainclothes, were seen going in and out of a nondescript three-storey building in northwest Edmonton on Wednesday, where MHCare Medical is run.
The company and its owner, Edmonton entrepreneur Sam Mraiche, became embroiled in a provincial contracting and conflict of interest scandal more than a year ago.
Businesses in the area told Global News dozens of police have been at the building this week.
The RCMP on Thursday confirmed it has an ongoing investigation relating to a complaint police received in February 2025, associated with Alberta Health Services.
“We can further confirm that we have executed multiple search warrants, and in order (to) protect the integrity of the investigation, we have no further comment at this time,” RCMP said.
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The force has been investigating allegations of inappropriate procurement procedures in the province’s health-care system.
MHCare has a history of business dealings with the Alberta government — including a $70 million contract to import children’s Tylenol during a countrywide shortage in 2022.
Alberta received about 30 per cent of the order, despite paying the full cost.
The province then sat on 1.4 million bottles after health officials determined the medication posed serious health risks when given to infants, before shipping it off to Ukraine.
Following that contract, Mraiche provided multiple cabinet ministers and government staff with luxury box tickets to an Edmonton Oilers playoff games.
Alberta Premier Danielle Smith, front second left, and B.C. Premier David Eby, front right, watch the Vancouver Canucks and Edmonton Oilers play Game 2 of an NHL hockey Stanley Cup second-round playoff series in Vancouver on May 10, 2024.
Darryl Dyck/ The Canadian Press
Corporate records show Mraiche is a 25-per cent stakeholder in two separate numbered companies under the Alberta Surgical Group name.
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According to Alberta Health Services documents, the private surgical company has been billing taxpayers more than twice as much per hip replacement procedure than it would cost in a public hospital.
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An investigation by the Globe and Mail last year dove deeper into Mraiche’s connections to senior officials in the Alberta government, finding connections between the businessman, purchasing officials and senior Alberta political figures have existed longer — and are more extensive — than what Mentzelopoulos alleged in her lawsuit.
Last January, the former head of Alberta Health Services, Athana Mentzelopoulos, was fired — a move she alleges intended to stop her from investigating sweetheart deals and high-level political interference in multi-million-dollar health procurement contracts.
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Her wrongful dismissal lawsuit filed in February claimed Mraiche-related firms have secured $614 million in government contracts for goods and services, including for private surgical facilities.
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Premier Danielle Smith’s government has denied any wrongdoing. A counter-claim by AHS and former health minister Adriana LaGrange said Mentzelopoulos was fired for poor job performance, not for her investigation.
None of the allegations have been tested in court.
Last summer, MHCare called for the province to release the details of the audit launched by Mentzelopoulos before she was fired, saying it may provide concrete proof allegations against its Mraiche are baseless.
MHCare is not named as a defendant in the lawsuit, but contracts it and related companies had secured with AHS were part of the examination. AHS said the document MHCare called for is privileged and confidential advice related to ongoing legal action, so it would not be released.
After the matter became public, both the RCMP and Alberta’s auditor general, Doug Wylie, launched separate investigations.
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The province also initiated its own third-party investigation with a limited scope, spearheaded by former Manitoba judge Raymond Wyant — an move the Opposition slammed.
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The NDP has long argued the only way to get to the bottom of the scandal is to hold a public inquiry led by a judge who can subpoena witnesses.
Wyant’s final report released last October found it was widely known two staffers were in “real or perceived” conflicts of interest but no steps were taken by senior health officials.
Wyant said he found no evidence of wrongdoing on the part of Premier Danielle Smith, her ministers or other political staff but noted limited powers afforded to him meant he couldn’t make any definitive statements.
He expressed doubt about whether some people he interviewed were telling the truth.
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The scandal came up Thursday in question period at the Alberta legislature.
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“The premier really, really wants the CorruptCare scandal to go away, it’s not going away. It is the biggest government scandal in Alberta history well until this week,” Opposition NDP leader Naheed Nenshi said.
“It’s clear that this government is either in cahoots with, or got taken by a player who just happens to be the best friend, bro, travel partner and relative of the justice minister.”
Smith dismissed the situation.
“The member opposite well knows that we cannot and will not comment on policing matters and with regard to this matter in particular, we received a report from Judge Raymond Wyant which clearly found that no politician, no political staff, and no Government of Alberta official had any wrongdoing in this matter,” Smith said.
“This is an AHS matter, looking at AHS personnel and we would ask for everyone to be patient while the RCMP does its and while the auditor general finishes its work.”
Global News reached out to MHCare for comment on Thursday but as of publishing, had not heard back.
—with files from The Canadian Press
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