Surrey Hit by $2.1M Fraud in 2019
The City of Surrey fell victim to a fraud in 2019 when $2.1 million was sent to a fake account through a fraudulent email. Most of the funds were eventually recovered, but the case involving a former employee remains before the courts. This is the second large-scale fraud to surface this year in Surrey.
The incident came to light after the Ontario Law Society Tribunal found that a lawyer, Ganesh Balaganthan, had committed professional misconduct. He allowed $1.7 million of the stolen money to pass through his trust account, part of a laundering attempt by the fraudsters.
A Separate Fraud Case Emerges
Earlier in 2025, it was revealed that a former city finance clerk was under investigation for allegedly diverting over $2.5 million between 2017 and 2024 using fake cheques. The employee was suspended in January 2024 after admitting to forging a supervisor’s signature on a stale cheque.
The warrant alleges she issued an additional 183 cheques to accounts linked to her, her mother, and her business. The City of Surrey is suing the former employee to recover the funds. Officials confirmed that this case is unrelated to the 2019 fraud.
City Implements Safeguards
When asked about safeguards after these incidents, the city said: “Significant changes were implemented around people, processes, and IT systems, including hiring a manager with direct oversight.” Officials did not explain why the 2017–2024 case took years to discover, citing ongoing court proceedings.
The city also declined to comment on any other instances of financial loss due to fraud in recent years.
How the 2019 Fraud Unfolded
According to the tribunal decision, fraudsters contacted Balaganthan, a newly qualified lawyer in Ontario, through an individual named Sung Hyang. They tricked Surrey into sending $2.1 million to a fraudulent escrow account. The money then entered a laundering scheme involving Balaganthan’s trust account.
Tribunal chair Paul Aterman noted that Balaganthan was “suspicious but turned a blind eye.” He failed to verify Hyang’s identity, the purpose of the funds, and the legality of using his account for this transaction.
Recovery Efforts and Next Steps
In June 2019, the lawyer was contacted by both a bank investigator and Surrey city counsel. He cooperated fully, agreeing to a consent order in Ontario Superior Court to freeze funds and provide information to trace and recover the stolen money.
Most of the $2.1 million was recovered, with only $78,000 remaining unrecovered. The city’s bank chose not to pursue legal action against Balaganthan. The lawyer will face a penalty hearing at a later date.
Surrey’s Commitment to Preventing Fraud
While the 2019 and 2017–2024 cases are separate, they highlight vulnerabilities that the City of Surrey has since addressed. Officials continue to monitor systems and strengthen financial oversight to prevent future fraud.
