Key Takeaways
- A former City of Surrey finance clerk, Sunny Catlin, has been charged with breach of trust, fraud, theft, and forgery in relation to nearly $2.5 million worth of missing money.
- The allegations against Catlin include manipulating a payment system to siphon off taxpayer funds and writing 183 fraudulent cheques to herself, her mother, and her side business.
- The investigation into Catlin’s activities began in January 2024 after she allegedly quit her job when questioned about a forged signature on some paperwork.
- The City of Surrey has sued Catlin and her mother in B.C. Supreme Court to reclaim the allegedly misappropriated funds.
- Catlin has denied the allegations of fraud, conversion, conspiracy, and breach of fiduciary duty, and her mother has also denied wrongdoing.
Introduction to the Case
A former City of Surrey finance clerk and part-time pastry chef, Sunny Catlin, has been accused of diverting taxpayer funds to her boutique cake-baking business. The allegations against her include breach of trust, fraud, theft, and forgery in relation to nearly $2.5 million worth of missing money. The Surrey Police Service issued a news release about the charges, which come more than a year after an investigation that began in January 2024. The investigation was launched after Catlin allegedly quit her job when she was questioned about what appeared to be a forged signature on some paperwork.
The Investigation
According to a search warrant obtained by CBC News, the irregularity allegedly led to the discovery of 183 fraudulent cheques written out to Catlin’s former legal name, her mother, and her side business. The cheques drew on funds kept in accounts that had been dormant for years. The RCMP’s investigation began after the city’s chief financial officer, Kam Grewal, reported that his staff within the finance department had uncovered a fraud. The court documents claim that Catlin had been committing fraud since 2017 by exploiting her position and had defrauded the city of more than $2 million.
The Alleged Fraud Scheme
The court documents give an overview of the civic deposit process that Catlin is accused of manipulating to reward herself. The City collects deposits from developers, construction companies, and individuals, which are then returned to them once they complete their projects and/or meet certain conditions set by the City. Catlin had access to the City databases that allowed her to see the details about deposits and change the names of the payee for the cheques to be issued. According to the search warrant, Catlin was initially suspended without pay after being confronted about the forgery. The following day, a replacement sent to pick up cheques normally handled by Catlin was allegedly given two extra cheques that she was not expecting, one made out to Catlin’s mother and the other to her business.
Catlin’s Background and Motivations
Co-workers allegedly claimed it was well known that Catlin was an avid gambler and would often talk about her experiences. It was also common knowledge in the office that Catlin had a cake baking business on the side. The search warrant suggests that Catlin’s supervisors ultimately discovered a total of 183 cheques for a total of $2,537,599.67 written out to the three associated accounts between 2017 and 2024. They tracked her user ID through the payment system to see where Catlin allegedly made changes to addresses and payees linked to deposit account holders in order to issue cheques to herself.
The City’s Response
In the wake of the CBC’s reporting on the alleged fraud, the City of Surrey insisted that the irregularities were discovered in response to the mayor’s "mandate to ensure fiscally responsible government and to safeguard every taxpayer dollar." The city also sued Catlin and her mother in B.C. Supreme Court in February 2024, but the details of the lawsuit didn’t make it into the public domain because the notice of civil claim was sealed. Catlin’s response to the lawsuit, however, is publicly available, and she expressly denies the allegations of fraud, conversion, conspiracy, and breach of fiduciary duty as alleged.
The Next Steps
Catlin is slated to make her first appearance on the charges next Tuesday. The City of Surrey’s lawsuit against Catlin and her mother is ongoing, and the outcome of the case will determine whether the city can reclaim the allegedly misappropriated funds. None of the allegations against Catlin have been proven in court, and she has denied all wrongdoing. The case highlights the importance of internal controls and oversight in preventing and detecting fraud in government agencies.