Washington Co. recoups $138,000 mistakenly sent to scammer posing as contractor
Mike Jones
Washington County is expected to be able to recoup $138,000 its finance department mistakenly sent in September to a scammer posing as the construction contractor demolishing the Courthouse Square office building in the city.
Solicitor Gary Sweat said during the commissioners’ agenda meeting Tuesday that the county’s insurance carrier is sending a check this week to reimburse them for the two invoice payments, although authorities might be close to reclaiming the stolen money.
“We’re going to be made whole,” Sweat said.
Sweat said the county notified the FBI and U.S. Secret Service of the fraud last week after the finance department was contacted by someone posing as Adamo Demolition Co. asking them to wire payments to a new routing and bank account. The solicitor said Adamo’s email system apparently was hacked, and emails were sent and phone calls were made to the finance department posing as the Detroit-based company.
“The hack happened on their end,” Sweat said. “Not our end.”
Days after the money was sent Sept. 19, the company contacted the county asking why it still had not paid the two invoices. Sweat said officials worked closely with the county’s insurer and the company to investigate the situation before finally contacting federal authorities earlier this month. Sweat told the commissioners the Secret Service has apparently located the origin of the fraud and may have located both the money and the hacker. It’s unclear if the fraudster, who a source identified as living in Canada, will be apprehended or face federal charges in the United States.
“I think they may have identified where the money might be and are looking to put it back,” Sweat said.
He added that the county’s insurer is now working with Adamo’s insurance carrier to determine which should be responsible for the bulk of the repayment, although there appears to be a good chance the money could be returned to the county. Until then, the insurance money should be sent to the county later this week, Sweat said.
Commissioner Larry Maggi, who is a former Washington County sheriff and retired Pennsylvania State Police trooper, questioned why federal and local authorities were not notified immediately after the fraudulent payment was discovered.
“That’s kind of why I wanted to report it right off the bat,” Maggi said during the meeting. “I’m not sure why we waited as long as we did.”
“It’s all good,” Sweat said. “We’re going to be made whole.”
The county’s insurance carries a policy protecting against cyber crimes after Washington County’s computer systems were infiltrated by Russian hackers in early 2024, crippling the government and courthouse networks. The county later paid $346,000 in cryptocurrency to the hackers in order to gain back control of the networks.
County Controller Heather Sheatler raised questions about why the finance department was handling invoice payments in the first place rather than going through her office or getting signatures from her and the treasurer. She said the proper protocols are being followed now and she’s comfortable with the resolution.
“I’m happy to see they’re following the law and doing what they need to do to get the money back,” Sheatler said.
In March, the commissioners approved a $1.555 million bid from Adamo to raze the Courthouse Square building and parking garage behind the Washington County Courthouse, and work began earlier this summer. Representatives with Adamo could not be reached for comment Tuesday.