City of Surrey lawsuit alleges fraud funds deposited in CIBC, Coast Capital accounts
Surrey is suing CIBC and Coast Capital for over $2.5 million allegedly stolen through a seven-year fraudulent cheque scheme by a former employee.Summary
The City of Surrey has filed a lawsuit against the Canadian Imperial Bank of Commerce (CIBC) and Coast Capital Savings, seeking to recover more than $2.5 million lost to a fraudulent cheque scheme that occurred over seven years. The city alleges that Sunny Catlin, a former accounting clerk in Surrey’s finance department, “manipulated” deposit processes to divert funds into accounts controlled by her, her company, and her mother. According to the notice of civil claim, Catlin altered security deposit documentation for legitimate payouts, resulting in 183 fraudulent cheques issued between February 2017 and January 2024.
Neither CIBC nor Coast Capital have yet filed responses to the lawsuit. Simultaneously, Catlin faces criminal charges including breach of trust, theft, fraud, and forgery, and is scheduled to appear in Surrey Provincial Court on January 30.
The city is seeking a judgment against the banks for the full $2.5 million, claiming they failed to adequately prevent the fraudulent transactions. The allegations remain unproven in court.
(Source：Castanet)