Fresno city officials say they did not disclose losing $600,000 in a phishing scam sooner because the FBI told them it would hurt their investigation.
Fresno city employees wired a large sum of money, then another, thinking the funds were going to a contractor building a police station.The city was a victim of wire fraud. But it would take two years for the truth to come out.
Last week, Arias told The Times that he felt it was time to inform the public after two years of silence. In April, the real contractor threatened to walk off the job for lack of payment. Several city officials were informed by the public works director that wire fraud had occurred. Shortly after assuming office in January, Dyer relayed the news in a closed session to the City Council, which had not been informed.
“It serves to not only perhaps compromise a federal investigation and the recovery of funds by these entities, but it also causes us to perhaps lose trust” from allied agencies, he said. Those emails, the Bee reported, were between Arias, former City Manager Thomas Esqueda, City Controller Michael Lima and City Atty. Doug Sloan discussing the fraud.
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