Update: fraud case involving payment of $1.5 million
Feb 7, 2024
This is an update to information released in January, which can be found here: https://www.greatersudbury.ca/city-hall/news-and-public-notices/2024/in-december-2023-the-city-of-greater-sudbury-was-the-victim-of-fraud/
In December 2023, the City of Greater Sudbury was the victim of fraud. The fraud case involves a payment of $1.5 million made to an unknown party who posed as the contractor for the Lorraine Street Supportive Housing project.
The City's matter was heard today by Justice Penny, the co-lead of the Commercial List in Toronto, and the attached Order was obtained. The Justice agreed that the evidence presented in the City’s court documents supported the conclusion that the City was defrauded by persons unknown. The Bank of Nova Scotia (BNS) was ordered to disclose all information and documents related to the subject account, including account opening information, deposits and disbursements. Justice Penny also ordered the BNS, RBC and any other financial institution into which any portion of the City’s funds were deposited, to freeze the accounts into which the proceeds have been deposited, and disclose all information required to trace the funds, and return the funds to the City, to the extent they are traceable.
The City and its legal counsel will now take steps to action the Order. Updates will be provided as the process unfolds.