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SASKATOON -- The City of Saskatoon says it has now recovered about $400,000 in funds that it lost to a fraudster this summer.

The City continues to work with law enforcement, banks, and its legal team to recover the remainder of the stolen money, city manager Jeff Jorgenson said in a news release.

“There is an important court hearing taking place this week in Toronto. It’s expected there will be further movement on the return of more funds following that hearing. For now, the funds still remain frozen in various bank accounts," he said in the release.

A fraudster stole the identity of the chief financial officer of Allan Construction, a company the city works with.

The scammer then contacted the city, asking to change the company’s banking information.

The $1.04-million payment from the city then went to the fraudster's account, rather than the company's.

The internal investigation has been completed and an update report will be provided to City Council and the public in October or November 2019, Jorgenson said.

The city has also filed a claim to its insurer in an effort to retrieve the cash.