Surrey Launches Legal Action Over $2.5 Million Financial Irregularities
The City of Surrey has initiated a civil lawsuit against a former employee to recover approximately $2.5 million linked to irregular transactions uncovered in dormant development-deposit accounts. The issues date back to 2017, with the city first detecting anomalies in early 2024 during an internal audit.
Investigation Uncovers Fraud, Criminal Probe Underway
Following the discovery, Surrey engaged external forensic accountants and reported the matter to the RCMP, who are now conducting a criminal investigation. City Manager Rob Costanzo emphasized that no current employees are implicated, and privacy laws prevent further comment on personnel matters, including those involving relatives of the former staff member.
Complex Scheme Involving Dormant Accounts and Forged Documents
Court documents reveal the former finance clerk allegedly exploited access to city databases, manipulating payee details and issuing fraudulent cheques to accounts linked to herself, her family, and a side business. The scheme involved 183 cheques totaling over $2.5 million, spanning several years.
City Strengthens Controls to Safeguard Public Funds
In response to the fraud, Surrey has enhanced its financial controls and processes to prevent similar incidents. The city assures residents that decisive steps are being taken to recover the full amount and protect taxpayer dollars, though details remain limited due to ongoing legal proceedings.
Surrey’s case highlights the challenges municipalities face in protecting public funds and the importance of robust oversight.
