Fraudsters scam thousands of dollars from Bridgewater courthouse using fake cheques
Following an internal provincial investigation, it was revealed that fraud artists managed to pass more than $35,000 in fake cheques as part of a months-long scheme against the Bridgewater courthouse. The fraudulent activity was uncovered in October 2023 and subsequently reported to the police. However, the full extent of the issue only became apparent about a year later, after provincial auditors conducted a thorough analysis of two bank accounts associated with the courthouse.
Recently obtained documents by CBC News through an access to information request shed light on the investigation and the recommended changes to the courthouse’s payment processes. According to the provincial auditors’ report, during the period between April 2023 and January 2024, a total of six fake cheques amounting to $20,150 were identified. Additionally, four more fake cheques totalling $15,143 were discovered outside of this timeframe.
The investigators noted in their report that there were ongoing instances of fraudulent cheques being detected even as the investigation was being conducted. Despite the fraudulent activity, the Justice Department clarified that there was no evidence of wrongdoing by the courthouse staff. They promptly alerted the authorities, conducted an audit, and implemented new safeguards upon detecting the fake cheques. Most of the funds involved in the fraud were successfully recovered.
Bridgewater Police Deputy Chief Danny Macphee confirmed that the investigation into the fraud is still ongoing, with collaboration between local law enforcement and authorities in Ontario and Alberta to track down the perpetrators. Macphee highlighted the complexities involved in such cases, where fraudsters often utilize fake IDs or aliases to open and swiftly close multiple bank accounts to obscure the trail of illicit funds.
Although Scotiabank, where the fraudulent activity primarily occurred, reimbursed most of the lost funds, they declined to reimburse two cheques totalling $6,640. The auditors’ investigation revealed that authentic cheques were likely altered to create the fake ones. The courthouse also maintained a chequing account with Royal Bank, primarily used for payments to regular vendors. The auditors recommended transitioning to alternative payment methods like direct deposit to mitigate the risk of future fraudulent activities.
Furthermore, the auditors highlighted the courthouse’s lack of clear guidelines on handling stale-dated cheques, which are cheques dated more than six months in the future. The investigation uncovered 24 stale-dated cheques valued at over $8,000 each, with dates ranging from six months to over six years ahead.
Cheque fraud remains a prevalent issue for businesses and organizations, as reported by the Association of Financial Professionals. The organization’s survey indicated that over 60% of respondents experienced actual or attempted cheque fraud in the past year. While advancements in technology have led to more sophisticated scams, cheque fraud persists due to its simplicity and effectiveness.
To combat future fraudulent activities, the auditors recommended enhanced monitoring and vigilance. The courthouse staff transitioned from monthly to daily reconciliation of accounts after the fraud was detected, improving their ability to identify fake cheques. Despite these measures, the auditors cautioned that the accounts remain vulnerable to potential fraud in the future.
In conclusion, the case of fraudulent cheques at the Bridgewater courthouse underscores the ongoing threat of payment fraud and the importance of implementing robust safeguards to protect against such illicit activities. Vigilance, regular monitoring, and adherence to best practices in financial transactions are crucial in safeguarding organizations against fraudulent schemes.
