City of Ottawa recovers 93 per cent of $558,000 stolen in scam

Ottawa City Hall (File photo)

The city of Ottawa expects to recover "close to" 100 per cent of the $558,000 that was lost in a fraudulent transaction when fraudsters targeted the Salvation Army Booth Centre.

City Treasurer Wendy Stephanson says $523,000 of the funds fraudulently taken have been returned to date.

"Further steps have been taken to recover the balance of the funds," Stephanson said. "As a result of the immediate action taken by staff, the city expects to recover close to 100 per cent of the funds fraudulently taken."

Two weeks ago, Stephanson told council that the city made a fraudulent $558,000 payment after being "impacted by illegal action perpetrated" against a partnering agency. That agency was identified as the Salvation Army Ottawa Booth Centre.

Stephanson says the city retained external legal counsel to expedite the court process and necessary legal action to recover the funds. The city filed a request for an emergency order to freeze the accounts where the stolen funds were deposited to and authorize the banks to disclose information to trace the funds.

Last Friday, the city's financial institution notified staff that $355,000 of the $558,000 of stolen cash was in the process of being returned to the city's account. On Wednesday, a further $168,000 was frozen and in the process of being returned to the city.

The Salvation Army Booth Centre is cooperating with the city and police investigation.