Yahoo: How City Treasurer Was Duped Into Sending $130,000 To Scammer Through Wire Transfers



The City of Ottawa has recovered more than $130,000 it sent to a scammer in the United States, as part of a 'fake CEO' scheme.

City Treasurer Marian Simulik fell victim to the scam in July of 2018, in which she sent $98,000 USD to someone, on the orders of who she thought was City of Ottawa Manager Steve Kanellakos.

The incident came to light in the city's auditor report Monday.

The spoof email directed Simulik to send the American cash to a supplier.

The fraud was uncovered when a second request was sent to Simulik, this time asking for $154,000 USD. The treasurer approached Kanellakos to make sure it was him asking for the money transfer and he said he knew nothing about the email.

The funds were sent to a US account that was being monitored by American authorities, the city was alerted and the money was recovered.

The City of Ottawa said suspects have been arrested and the matter is before the courts.

Ottawa Auditor General Ken Hughes said in his report that controls for wire transfers at the city need to be improved.


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