Small Town News

Town awaits word of possible refund of funds illegally transferred from account in autumn

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The Town of Superior may or may not be able to recover $39,251 in funds lost in an illegal wire transfer from the town's computers on October 15, Public Safety Director/Police Chief Lou Digirolamo said last week.

On December 17, Digirolamo updated the town council on the case, which he said is still under investigation by the Federal Bureau of Investigation.

The fraudulent transaction came to light back in October. That's when the Superior Branch of Bank of the West notified the town staff that an unsuccessful October 16 attempt had been made by someone to wire transfer funds out of the town's account, according to a police report.

The transfer did not go through due to lack of funds in the town's payroll account, the police report said. Town Manager Melanie Oliver checked on other wire transfers and found the unauthorized one for $39,251 that did go through.

The Superior Police Department and Bank of the West investigated the transaction and it was subsequently turned over to the FBI.

In an October statement to the media, Oliver had said that the bank had at first refunded the town's money then withdrawn the refund "due to the criminal nature of this transaction."

She had added that no town employee was involved in the unauthorized transaction and a virus had compromised the town systems.

The FBI had seized town computers that had handled the banking and financial matters. Staff computers and the server have been scrubbed and additional security measures and procedures put in place regarding financial matters.

But as the investigation by the FBI continues into the perpetrator or perpetrators of the illegal transaction, who according to the police report may be from Eastern Europe or Russia, the Town of Superior needs its $39,251 back.

However, Digirolamo said to the council on December 17 and again, speaking from Town Hall to the media on the day following the council meeting, the decision on whether Superior gets a refund appears to rest with the bank.

He said he had been in contact with Tim Sieferman, Bank of the West regional manager in charge of Arizona, and been told that if the fault lies with Town of Superior computers in, due to the virus, releasing information that made the transaction possible, the town might not get the money back. If the fault is found to lie with Bank of the West, Digirolamo said, a refund might be made.

Sieferman confirmed the conversation with Digirolamo on Monday. He said the bank was still investigating. He added that a decision could be announced after Christmas as to whether a refund would be made.



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