Surrey City Sues Banks Over Alleged $2.5 Million Fraud

The City of Surrey has initiated legal action against the Canadian Imperial Bank of Commerce (CIBC) and Coast Capital Savings, seeking to recover over $2.5 million that the city alleges was stolen through a fraudulent cheque scheme lasting seven years. The lawsuit, filed last month in the British Columbia Supreme Court, claims that Sunny Catlin, a former accounting clerk in the city’s finance department, manipulated deposit processes to divert funds to accounts that she controlled, as well as those of a company she managed and her mother.

According to the civil claim, Catlin is accused of altering security deposit documentation associated with legitimate payouts. The city has reportedly identified 183 fraudulent cheques linked to Catlin’s alleged misconduct, which were issued between February 2017 and January 2024. The lawsuit highlights a significant breach of trust, raising concerns about accounting practices within the city’s financial operations.

The City of Surrey is pursuing a judgment against both CIBC and Coast Capital for the recovery of the lost funds. As of now, neither bank has submitted a formal response to the lawsuit. The allegations presented in the filing remain unproven in court.

Sunny Catlin, who has not publicly commented on the allegations, faces serious legal repercussions. She was charged in November with multiple offenses, including breach of trust by a public officer, theft, fraud, and forgery. Catlin is scheduled to appear before the Surrey Provincial Court on January 30, 2026, where the legal proceedings regarding these charges will continue.

This lawsuit underscores the importance of robust financial controls within government entities and raises questions about oversight measures designed to prevent such fraud. The City of Surrey’s actions reflect a commitment to recovering lost funds and addressing the alleged misconduct that has affected public trust.

As the case unfolds, it will be closely monitored for further developments, particularly regarding the responses of CIBC and Coast Capital Savings, as well as the outcomes of the charges against Catlin.