Mercer Island officials say the city has clawed back roughly 88% of the $420,350.94 that was siphoned off in an accounts-payable scam, leaving taxpayers responsible for a $50,000 insurance deductible. Detectives traced funds across state lines, seized money from bank accounts and worked with the city’s insurer to recover a total of $370,350.94, all while staff began tightening vendor controls behind the scenes.
How the scam unfolded
In January 2025, someone impersonating a legitimate contractor contacted city staff and asked to change the contractor’s mailing address. The Finance Department processed the request and a $420,350.94 progress payment was then mailed to the fraudulent address, according to KOMO News. The scheme came to light when the real…..