Residents want transparency after City of Arab loses $400k in fraud scheme

ARAB, Ala. — Residents raised concerns at Monday night’s Arab City Council meeting after the city lost more than $400,000 in a fraud scheme.

City officials say an unknown individual or group, posing as a legitimate officer of FITE Construction — the contractor building the new recreation center — successfully misrepresented themselves and caused the fraudulent payment.

“I just have a lot of questions, and the mayor has described the event as a sophisticated phishing, and I would like to know what about it is sophisticated,” Jim and Regina Coleman said. “I just really I think all the citizens need to know exactly what happened. I’m just kind of flabbergasted that a city with the kind of resources that were in the financial report today, could have such a large expenditure of funds.”…

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