Former Surrey financial clerk suspected of cheating the city of $2.5 million

Surrey Police Department and RCMP financial crime officials are investigating the charges that the former city clerk in Surrey cheated over $2.5 million by cutting hundreds of checks into accounts related to herself and her boutique cake baking business.

According to a search warrant obtained by the CBC, the woman (not charged by CBC, she did not name) resigned from her job in January 2024 after being asked about a signature that appeared to be a forged in certain paperwork.

The violation allegedly led to the discovery of 183 fraudulent checks written to the woman’s former legal name, her mother and her business around her – borrowing funds that have been dormant for years.

“Fraud since 2017”

The city's chief financial officer called the RCMP last January and “reported that his finance department had discovered fraud.”

A warrant issued in March searched the woman’s work computer claiming that Surrey City Chief Financial Officer Kam Grewal told police that the woman “has been fraudulent since 2017 and has used her location and defrauded more than $2 million in the city.”

The woman did not respond to messages left on her business-related phone Wednesday and Thursday, which identified her under her name. The business appears to have been collapsed and its website has been removed.

Court documents outline the woman's alleged manipulation to reward her citizens for deposits.

“The City collects deposits from developers, construction companies and individuals. Once they complete the project and/or meet certain conditions set by the city, the deposits are returned to them,” the search warrant said.

“The City collects thousands of deposits each year and the city has had a deposit of 20 to 40 years for 20 to 40 years because projects can be delayed, abandoned or companies have some other issues.”

Grewal allegedly told police that the woman “had access to the city’s database, allowing her to view details about the deposit and allow her to change the name of the payee to issue a check.”

“Check what she didn't expect

The woman was initially suspended for free and was told to leave the office immediately on January 25, 2024, as per the search warrant.

The next day, when the suspect would usually go to the Accounts Payable Department to obtain a check as a legal deposit declaration form, the clerk of the engineering department was sent to her location.

The replacement clerk “gives two extra checks she didn’t expect,” one set out to the suspect’s mother and the other offered to the cake baking business.

“Common knowledge in the office [the woman] The search warrant said: “It’s still doing the cake baking business.

“She is also known to be an avid gambler. [She] She often talks about her experience. ”

Next week, the woman sent an email saying she resigned immediately. In the next few hours, she allegedly called the engineering clerk and asked her to bring two extra checks, “falling to the reception so she could pick them up.”

The clerk “thinks it was strange”, court documents said.

Track account changes

According to the search warrant, the woman's supervisor eventually found 183 checks, totaling $2,537,599.67 to three related accounts between 2017 and 2024.

They tracked the woman’s unique user ID card to see where she allegedly changed the payees associated with the deposit account holder for fraud.

Court documents list a complex process that begins with assigning unique “D-supplier” numbers to each person who is entrusted to the city.

In one example cited in the search warrant, the woman's user ID was used to insert her previous name and current address into a D-super account set up by the vendor, who donated a $9,943 deposit to the city in 2012.

In other examples, the woman's user ID is allegedly used to withdraw funds from a long-term D-vendor account to the accounts they just paid – changing the details of those accounts to issue a new check to her cake business or mother.

Last fall, police allegedly tried to get an audio statement from the woman's mother, who “looked older based on her appearance and slow movements.”

According to the search warrant, the woman's mother told police that she did not want to talk to the police.

City response depicts different pictures

The city responded to CBC’s questions about the case after being told Thursday afternoon that CBC plans to open a story Friday morning. Instead of responding to the CBC’s request directly, the city issued a media-wide press release.

The release does not mention the assertion of the search warrant, that is, the so-called fraud was discovered due to accidental errors.

The City claims that the violation is in response to the mayor’s “mandate to ensure fiscal responsibility for the government and maintain the task of every taxpayer dollar.”

“Once a violation was found, the city immediately began an internal review and participated in external forensic experts. The matter was also reported immediately to the Surrey RCMP, who was conducting a criminal investigation,” the news said.

“It can be ensured that decisive steps have been taken to protect public funds and to recover the entire amount on their behalf. Because the matter was before the court, the city cannot comment further at this time.”

The City also claimed to initiate legal proceedings for the unnamed clerk.

No charges contained in the search warrant were proven in court.