Hamilton police have charged a man from Surrey, B.C., who they say is responsible for stealing over half a million dollars from the City of Hamilton last year.
Police said in March of 2024, a staff member at a municipal housing affiliate received what they thought was a legitimate email from a known contractor with the city.
The email contained altered banking details for a vendor payment, police said, and the staff member “processed an electronic funds transfer for over $550,000.”
The money requested was then deposited into a bank account at a financial institution in Surrey, and the funds were quickly dispersed across multiple newly opened personal and business accounts at various Canadian banks, according to police.
Police said the fraud was discovered later in March after the vendor the staff member thought they were paying reported not receiving the funds.
“An internal review, supported by the City’s Auditor General and an independent forensic accounting firm, revealed that the funds had been deposited into an account connected to a numbered company,” police said in a release on Wednesday.
Police were able to trace that company to a 32-year-old Surrey man. They said he turned himself in to Hamilton police this week. He was arrested and released on an undertaking and was forced to surrender his passport. He is scheduled to appear in court on Aug. 14.
Police did not identify the suspect.
Investigators worked alongside law enforcement in Surrey and Edmonton to gather surveillance video, voice recordings, and bank records to identify the man and track the movement of the half a million dollars.
“Legal action led to the freezing of one account, which ultimately allowed for the recovery of approximately $417,000,” the release said.
However, the city lost over $130,000, in addition to forensic and legal action, and said they will pursue restitution.
In a statement to CTV News Toronto, Hamilton mayor Andrea Horwath said, “Hamiltonians deserve to have confidence in the security of their public institutions, and this incident was understandably troubling. No organization is immune to cyber-attacks, and the City of Hamilton knows this all too well. We continue to strengthen our systems with additional safeguards to better protect against future threats.”
