Scam costs City of Memphis $773K

MEMPHIS, Tenn. — The City of Memphis lost $773,000 in a scam in 2022 that was not disclosed until this year.

The incident first came to light when it was mentioned by City Councilman Chase Carlisle in a June 4 council meeting. City officials confirmed details to WREG Wednesday.

A city spokesperson said that based on what they have learned, in February 2022, the City of Memphis made regular payments to Zellner Construction.

When an entity they believed to be the company requested payment, “they changed the account details and wired $773K to an account that was, indeed, not Zellner,” the spokesperson said.

The total amount lost on Feb. 19, 2022, was $773,695.45, according to a city document.

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They were outside the window to retrieve funds when the mistake was realized, the city’s spokesperson said.

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