VANCOUVER — The City of Surrey is suing the Canadian Imperial Bank of Commerce and Coast Capital Savings to recover more than $2.5 million allegedly stolen in a fraudulent cheque scheme spanning seven years.

The city alleges in a notice of civil claim filed last month in B.C. Supreme Court that Sunny Catlin worked as an accounting clerk in Surrey’s finance department and “manipulated” deposit processes to divert funds to accounts held by her, a company she controlled and her mother.

The lawsuit, which contains allegations that have not been proven in court, says Catlin altered the security deposit documentation for legitimate payouts.

The city says it has identified “at least” 183 fraudulent cheques tied to Catlin’s alleged fraud, issued between February 2017 and January 2024.

“Sunny, by manipulating the security deposit records and by altering supporting documentation, made Wu, herself (under the alias Yee), and ECS Inc. appear to be legitimate payees for security deposit payouts,” the claim says, referring to Catlin’s mother and the company Catlin allegedly controlled.

The city says it started investigating last year after being told of “irregularities” in forms authorizing the release of deposits.

The claim says the alleged fraud also involved forms from the city’s engineering department, which Catlin altered by changing recipient names and “inserting the image of the signature of a member of the engineering staff taken from an unrelated document.”

The City of Surrey is seeking judgment against the banks for more than $2.5 million, but neither CIBC nor Coast Capital have filed responses to the lawsuit.

Surrey city manager Rob Costanzo said in a statement in May that the “irregular transactions” identified by staff involved “dormant development-deposit accounts.”

“Since then, the city has enhanced its processes to prevent a similar occurrence,” Costanzo said, adding that the city had also filed a lawsuit against the former employee seeking recovery of the funds.

Charges against Catlin were approved by the BC Prosecution Service on Nov. 18, after an investigation by the RCMP’s economic crimes unit, which started in early 2024.

Catlin’s tea house business Enchanted Cake Studio in Surrey, B.C., changed its name to Duchess Tea Salon, which announced on its website that it was closing down last month “due to personal reasons.”

Catlin, who didn’t respond to a request for comment, faces charges of breach of trust by a public officer, theft, fraud and forgery, and is due back in Surrey Provincial Court on January 30.