City of Ottawa recovers full amount of defrauded cash after $558,000 scam

Ottawa City Hall. (File photo)

The city of Ottawa says it has recovered more than half a million dollars lost in a fraudulent transaction earlier this year.

In a memo to city councillors, Chief Financial Officer Wendy Stephanson said the remaining funds were recovered Friday.

“Staff identified the fraud, took immediate action and retained external legal counsel to expedite the court process and necessary legal actions to recover the funds. As a result of the immediate action, the City has recovered all of the funds fraudulently taken,” Stephanson said.

Stephanson announced in mid-April that the city made a fraudulent $558,000 payment after being "impacted by illegal action perpetrated" against a partnering agency. That agency was identified as the Salvation Army Ottawa Booth Centre.

Two weeks ago, Stephanson said the city expected to recover "close to 100 per cent" of the funds, and had announced that $523,000 had already been returned.

A police investigation is underway.

--With files from CTV News Ottawa's Josh Pringle.