What happened
In July 2018 Ottawa city treasurer Marian Simulik wired about US$98,000 after receiving emails purporting to come from city manager Steve Kanellakos requesting funds to complete an acquisition. Five days later a second email requested US$150,000; Simulik happened to be sitting beside Kanellakos at a council meeting, asked him directly, and learned the request was fraudulent. The auditor general found no wrongdoing by city staff, and U.S. authorities arrested an individual linked to the receiving account.
How the deception worked
The attacker impersonated the city manager, the one person whose instruction the treasurer would be least likely to challenge, and framed the payment as a confidential acquisition requiring a quick wire. The exchange ran over several emails, letting the fraudster answer questions and build rapport in the city manager's voice, which reinforced authenticity. Because the amount was modest by municipal standards and the requester was the treasurer's superior, the transfer cleared normal handling. The scheme unraveled only by coincidence when the treasurer was physically next to the real city manager during a follow-up request, illustrating that the control that caught it was luck rather than process.
AI involvement · No AI reported
No AI or synthetic media reported.
The control that would have caught it· our reading, not a claim from the sources
Executive-initiated wire requests should require verbal confirmation on a known number before release, and municipalities should bar email as an authorization channel for funds transfers entirely.
Sources (1)
This entry summarises public reporting. It is not a legal finding, and details can change as investigations conclude. Found an error? Send a correction.