Former Metropolis of Surrey finance clerk suspected of defrauding metropolis of $2.5 million
Surrey police and RCMP monetary crimes officers are investigating allegations {that a} former Metropolis of Surrey finance clerk defrauded the town of greater than $2.5 million by slicing lots of of cheques to accounts related to herself and her boutique cake baking enterprise.
Based on a search warrant obtained by the CBC, the girl — who the CBC just isn’t naming as she has not been charged — stop her job within the finance division in January 2024 after she was questioned about what gave the impression to be a solid signature on some paperwork.
That irregularity allegedly led to the discovery of 183 fraudulent cheques written out to the girl’s former authorized identify, her mom and her facet enterprise — drawing on funds stored in accounts that had been dormant for years.
‘Committing fraud since 2017’
The courtroom paperwork say the town’s chief monetary officer referred to as RCMP final January “to report that his workers throughout the finance division had uncovered a fraud.”
A warrant issued in March to look the girl’s work pc claims Surrey metropolis CFO Kam Grewal instructed police the girl “had been committing fraud since 2017, by exploiting her place and had defrauded the town of greater than $2 million.”
The girl didn’t reply to messages left Wednesday and Thursday on a cellphone related together with her enterprise, which identifies her by identify. The enterprise seems to have folded and its web site has been taken down.
The courtroom paperwork give an summary of the civic deposit course of the girl is suspected of manipulating to reward herself.
“The Metropolis collects deposits from builders, building firms and people. The deposits are then returned to them as soon as they full their initiatives and/or meet sure situations set by the Metropolis,” the search warrant says.
“The Metropolis collects hundreds of deposits yearly and a few deposits have been with the town for over 20 to 40 years, as initiatives could be delayed, deserted or the corporate has another points.”
Grewal allegedly instructed police the girl “had entry to the Metropolis databases that had allowed her to see the small print about deposits and allowed her to alter the names of the payee for the cheques to be issued.”
‘Cheques that she was not anticipating’
Based on the search warrant, the girl was initially suspended with out pay and instructed to go away the workplace instantly on Jan. 25, 2024, after being confronted concerning the forgery.
The next day, when the suspect would usually have gone to the accounts payable division to choose up cheques written as authentic deposit returns, a clerk from the engineering division was despatched in her place.
The substitute clerk “was given 2 further cheques that she was not anticipating” — one made out to the suspect’s mom and the opposite to a cake baking enterprise.
A former Metropolis of Surrey finance clerk is suspected of defrauding the town of $2.5 million. CBC’s investigative reporter Jason Proctor has been following the story.
“It was frequent information within the workplace that [the woman] additionally had a cake baking enterprise on the facet,” the search warrant says.
“It was additionally well-known that she was an avid gambler. [She] would typically speak concerning the experiences she had.”
The subsequent week, the girl despatched an electronic mail to say she was resigning efficient instantly. Within the hours that adopted, she allegedly referred to as the engineering clerk asking her to carry the 2 further cheques “all the way down to the reception so she may simply decide them up.”
The clerk “thought this was odd,” the courtroom doc says.
Monitoring modifications to accounts
Based on the search warrant, the girl’s supervisors finally found a complete of 183 cheques for a complete of $2,537,599.67 written out to the three related accounts between 2017 and 2024.
They tracked the girl’s distinctive consumer ID to see the place she allegedly made modifications to addresses and payees linked to deposit account holders with the intention to perform the fraud.
The courtroom paperwork lay out an advanced course of that begins with the assigning of a novel “D-vendor” quantity to each one that leaves a deposit with the town.
In a single instance cited within the search warrant, the girl’s consumer ID was used to insert her former identify and present deal with into a D-vendor account arrange for a provider who gave the town a $9,943 deposit in 2012.
In different examples, the girl’s consumer ID was allegedly used to withdraw cash from long-dormant D-vendor accounts to ones that had simply been paid out — altering the small print on these accounts to challenge new cheques to her cake enterprise or mom.
Final fall, police allegedly tried to acquire an audio assertion from the girl’s mom, who “appeared fairly aged primarily based on her look and gradual actions.”
Based on the search warrant, the girl’s mom instructed officers she didn’t wish to speak to police.
Metropolis response paints completely different image
Town responded to the CBC’s questions concerning the case Thursday afternoon after being instructed the CBC deliberate to run a narrative Friday morning. Reasonably than reply on to the CBC’s request, the town issued a media-wide information launch.
The discharge doesn’t discuss with the search warrant’s assertion that the alleged fraud was found because of an opportunity mistake.
Town claims the irregularities had been found in response to the mayor’s “mandate to make sure fiscally accountable authorities and to safeguarding each taxpayer greenback.”
“As soon as the irregularities had been found, the Metropolis instantly commenced an inner assessment and engaged exterior forensic specialists. The matter was additionally instantly reported to the Surrey RCMP who’re conducting a legal investigation,” the discharge says.
“Residents could be assured that decisive steps have been taken to guard public funds and to get well the total quantity on their behalf. As a result of the matter is earlier than the courts, the Metropolis is unable to remark additional presently.”
Town additionally claims to have initiated authorized proceedings that don’t identify the clerk.
Not one of the allegations contained within the search warrant have been confirmed in courtroom.
