$9.8M stolen from FACTOR bank account, Canadian provider of music grants alleges
A shocking case has come to light in Canada’s music industry, as the Foundation Assisting Canadian Talent on Recordings (FACTOR) alleges that nearly $10 million of federal government money was stolen from its bank account. This incident, which will be brought before a judge in Toronto, has sent shockwaves through the industry.
According to documents filed with the Ontario Superior Court of Justice Commercial List, FACTOR claims that an unauthorized individual gained access to its Scotiabank account and siphoned off almost $9.8 million in June. This amount represents a significant portion of the organization’s annual funding to support Canada’s music industry.
The funds were allegedly wired to a numbered company in Quebec and then transferred to a cryptocurrency platform, where they were converted to crypto and used to purchase crypto-mining hardware. FACTOR’s legal team asserts that Scotiabank was grossly negligent in allowing this unauthorized transfer to take place, pointing out multiple red flags that should have alerted the bank to the dubious activity.
Established in 1982, FACTOR plays a crucial role in supporting Canada’s English-language music industry by providing grants to musicians, record labels, event organizers, and awards shows. The organization has helped numerous artists achieve success both domestically and internationally, with funding recipients including well-known acts like Nickelback and Tegan and Sara.
In the fiscal year 2022-23, FACTOR distributed over $51 million in funding to more than 3,000 projects across Canada. Ebonnie Rowe, founder of Honey Jam, a non-profit artist development program, expressed shock and disbelief upon hearing about the missing funds, emphasizing the vital role that FACTOR plays in supporting arts and culture in Canada.
The court filings reveal that the alleged fraud occurred due to unauthorized access to FACTOR’s bank account by an individual using a third-party email address associated with a part-time chief financial officer. Despite several red flags, Scotiabank failed to alert FACTOR about the suspicious activity.
After the funds were transferred to a numbered company in Quebec and then to a cryptocurrency platform, a Quebec man named James Campagna was implicated in the hardware purchase. Campagna denies any involvement in the theft and claims that an unknown individual placed the order for crypto-mining machines using his company’s account.
FACTOR is now seeking restitution from Scotiabank and the parties allegedly involved in the unauthorized transaction. The organization’s court filings highlight the need for a swift resolution to recover the stolen funds and restore confidence in the music industry’s financial security.
As the case unfolds in court, the music community in Canada remains hopeful for a positive outcome that will safeguard the integrity of funding mechanisms for artists and industry professionals. The investigation into this unprecedented incident underscores the importance of maintaining robust security measures to protect against financial fraud and cyber threats.
