The City of Surrey has filed a lawsuit against CIBC and Coast Capital Savings seeking to recover more than $2.5 million allegedly diverted through a long-running cheque fraud scheme involving a former city employee.
The City of Surrey has launched a civil lawsuit against the Canadian Imperial Bank of Commerce and Coast Capital Savings, alleging more than $2.5 million in fraudulently diverted funds were deposited into accounts held at the two financial institutions.
In a notice of civil claim filed in B.C. Supreme Court, the city alleges that Sunny Catlin, a former accounting clerk in Surrey’s finance department, manipulated internal deposit processes over a seven-year period to redirect city funds to accounts held by herself, a company she allegedly controlled, and her mother.
The lawsuit claims Catlin altered security-deposit documentation linked to legitimate payouts, making the payments appear valid while directing funds to unauthorized recipients. The city says it has identified at least 183 allegedly fraudulent cheques issued between February 2017 and January 2024.
According to the claim, the alleged scheme involved modifying recipient names on engineering and finance department forms and inserting images of staff signatures taken from unrelated documents. The city says it began investigating in 2024 after discovering irregularities in forms authorizing the release of dormant development-deposit accounts.
The allegations outlined in the lawsuit have not been proven in court. As of publication, neither CIBC nor Coast Capital Savings have filed responses to the civil claim.
Surrey city manager Rob Costanzo has said the city has since strengthened its internal controls and is also pursuing recovery directly from the former employee.
Criminal charges against Catlin were approved by the B.C. Prosecution Service in November following an investigation by the RCMP’s economic crimes unit. She faces charges including breach of trust by a public officer, theft, fraud, and forgery, and is scheduled to appear in Surrey Provincial Court later this month.
