Melton Council has reached an agreement with a supplier who lost out when money it was due was paid into a fraudulent account.
In September 2013 the council was the victim of a payment fraud which resulted in £205,000 being paid into a fraudulent bank account. This money was due to one of the council’s regular suppliers.
Since then the council and the genuine supplier have co-operated with the police to help them with their inquiries. The investigation remains on-going.
The council and the supplier had also been in talks over the outstanding money. The council has now agreed to pay the supplier 80 per cent of the money it was due.
The agreement also allows for any funds recovered from the fraudsters to be retained by the council.
Council leader Byron Rhodes said: “I’m pleased this matter has now been resolved with one of the council’s valued suppliers. I’m disappointed both sides have suffered a loss as a result of this well-planned and executed crime. The council will continue to be in contact with the police to support the investigation.”