What: a reported $14.7 million fraudulent wire transfer, and a proposed ad hoc Advisory Committee on Financial Transaction Security.
Where it stands: Five speakers at the November 3 Council meeting asked about the reported fraud and requested accountability, a controls review or a forensic review. A resolution establishing an ad hoc Advisory Committee on Financial Transaction Security appeared in the October 27 minutes and as a held-over item on the November 3 agenda.
Next: outcome of the November 3 meeting; minutes not yet posted.
Details
The $14.7 million figure is as reported by the speakers on the agenda; this record has not independently verified it.
The outcome of the committee resolution is not known.
Resolution 60-1221 on the agenda: a council-sponsored investigation, with special counsel, into the fraudulent transactions of August and October 2026. The findings recite a fraudulent wire transfer loss of $14.7 million (October 2026) and an August cybercrime of more than $900,000 that was fully recovered. Votes unknown until minutes are posted.
FBI Mobile field office briefed members: the August loss was a business email compromise and the later loss cyber-enabled fraud; both under investigation. Details withheld to protect recovery.
A dozen or so speakers pressed for accountability, public answers and an independent forensic review; the Council President said the Finance Committee had submitted questions and was awaiting answers. The ad hoc advisory committee on financial transaction security was established with the held-over resolutions.
Administration answered most submitted questions: August email compromise (instructions August 12, funds recovered August 18), new vendor-change protocol August 28, five investigations or reviews under way, no immediate budget impact but about $15 million of bond-fund contingency lost unless recovered. Weekly updates promised; a majority backed an independent Council investigation.
Mayor and Finance Director described the timeline (false vendor contact from May, altered bank details, discovery October 16); intended payee was arena contractor BL Harbert, since paid; finance committee meetings scheduled and public speakers urged an independent investigation.
Finance Director gave the timeline (May start, payment October 2, discovery October 16, earlier August attempt recovered); members asked for written verification policies, weekly updates, insurance status and investigation scope; Finance Committee meetings set for November 3 and 17.