City of Mobile promises more details into $14 million scam loss

The City of Mobile fired one employee and put two others on leave following the loss of nearly $15 million dollars to a scam connected to new municipal arena. Mobile Mayor Spiro Cheriogotis announced the action regarding staff while assuring the public that there’s no evidence that the crime was an “inside job.”

Cheriogotis said last week that a payment intended for ongoing construction work on the city’s new arena had been diverted through the scam. He said at the time that multiple investigations were under way.Cheriogotis didn’t reveal how the scam was undertaken, but investigators knew how the crime was carried out, citing the probe was still underway.

Published reports say the type of scam perpetrated against Mobile was something known as a business email compromise. This characterization was confirmed by Mayor Cheriogotis…

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