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-Lurid Crime Tales-
Colorado town duped out of $1M in bridge construction scam
2020-01-02
[NYPOST] Someone had a bridge to sell ... and this Colorado town fell for the scam.

The town of Erie was duped out of more than $1 million when it sent money meant for a bridge construction company to a fake account, according to a new report.

Erie sent just over $1.01 million to an unknown person posing as an employee of SEMA Construction, the company behind the building of the Erie Parkway Bridge, The Denver Post reported, citing a Monday email blast from Erie Town Administrator Michael Fleming.

The scammer had completed a form on the town’s website Oct. 21 requesting a change in how the company would receive payments for the work, the outlet reported.

"Specifically, the change was to receive payments via electronic funds transfer rather than by check," Fleming’s email blast said.

"Although town staff checked some of the information on the form for accuracy, they did not verify the authenticity of the submission with SEMA Construction; they accepted the form and updated the payment method."

Four days later, the town processed two payments to an account not authorized by SEMA ‐ totaling the entire seven-figure amount, according to the report.

"Once the payments were in that account, the perpetrators of this fraud sent the money via wire transfer out of the country," the email blast said.

Town officials were unaware of what had happened until its bank notified them of potential fraud on Nov. 5, according to the report. When officials contacted SEMA regarding the payments, the company said they did not receive it and never requested a payment method change.

So on Nov. 15, the town sent two checks to the actual company for its work on the bridge.

The funds came from a transportation impact fund, which has enough of a balance to temporarily cover the loss pending an insurance claim, Fleming said in the blast.

There is no evidence to indicate that any town employee was involved in criminal activity or had criminal intent.

The town’s finance director has since removed the form used by the scammer from its website ‐ and stopped paying vendors through electronic funds transfer unless appropriately verified.

"The town is actively using other information gleaned from the investigations to identify potential risk and to mitigate those risks," Fleming’s email said.

The town, local police and the FBI are working together to investigate the case, the local paper reported.

Construction began on the bridge last January and it was completed 10 months later.

Posted by:Fred

#8  Classic Business Email Compromise with a bit of a twist. Scammers were likely electronically inside the construction company for months. Look at the dates also. They payment was sent on Friday giving the scammers the weekend to ping the money around the world. Money is long gone.......
Posted by: Bangkok Billy   2020-01-02 18:35  

#7  Local paving contractor was paid $10,000 dollars to pave a Law enforcement officers driveway. Never done. Individual now resides in local prison again as a result. He claims his problems are him being a Gypsy. He is also loved by several women, so he claims. I have seen him wiggle money from some of the seemingly toughest women. He should have entered politics and worked his magic.
Posted by: Dale   2020-01-02 08:54  

#6  Those wacky Nigerians - what will they think of next?
Posted by: Raj   2020-01-02 08:49  

#5  Will he be charged with impersonating a congressperson as well?
Posted by: Seeking Cure For Ignorance   2020-01-02 07:58  

#4  ...or their immediate family members.
Posted by: Procopius2k   2020-01-02 06:40  

#3  I hope they caught the perps - you shouldn't do such things unless you're a congressperson.
Posted by: g(r)omgoru   2020-01-02 01:30  

#2  The old saw is, "You can't con an honest man..."
Posted by: M. Murcek   2020-01-02 01:21  

#1  Gullibility is still the scammer's and the hacker's best weapon.
Posted by: DarthVader   2020-01-02 00:55  

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