The City of Saskatoon says it has recovered nearly half the money lost in a fraud scheme.
Officials said the city has recovered roughly $400,000 of the $1.04 million directed to a fraudster’s bank account in August.
City manager Jeff Jorgensen said they continue to work with law enforcement agencies, banks and their legal team to recover the remainder of the money.
“There is an important court hearing taking place this week in Toronto,” Jorgenson said.
“It’s expected there will be further movement on the return of more funds following that hearing. For now, the funds still remain frozen in various bank accounts.”
Someone electronically impersonated the CFO of Allan Construction and asked for a change in banking information, city officials previously said.
The city complied, resulting in the company’s next contract payment of $1.04 million being deposited in the fraudster’s bank account.
The fraud was uncovered on Aug. 12.
A judge in Ontario froze money in a number of bank accounts on Aug. 16, and city officials said the vast majority of the stolen money has been identified and locked-down by the courts.
Jorgenson said an internal investigation has been completed and an update to city council and the public will happen in October or November.
WATCH (August 2019): Progress made in City of Saskatoon’s efforts to get back stolen $1M
—WIth files from Thomas Piller