A city employee spent years processing false invoices to pocket $2.5 million from Surrey taxpayers, according to RCMP investigators who announced charges yesterday in what may be the largest municipal fraud case in B.C. history.
Former financial clerk Emma Chen, 43, faces multiple counts of fraud over $5,000, breach of trust by a public officer, and money laundering following a 14-month investigation into financial irregularities at Surrey City Hall.
“The investigation began when internal auditors flagged unusual payment patterns in the public works department,” said RCMP Sgt. Jasmeen Kaur at yesterday’s press conference. “What they discovered was a sophisticated scheme spanning nearly five years.“
I obtained court documents revealing Chen allegedly created shell companies that submitted invoices for services never rendered. As the employee responsible for processing vendor payments under $25,000, she allegedly approved these fraudulent claims herself, bypassing the usual oversight mechanisms.
The Surrey fraud case highlights critical vulnerabilities in municipal financial controls. According to the Canadian Association of Fraud Examiners’ 2024 report, government entities lose an average of 5% of annual budgets to various forms of fraud, with smaller transactions often escaping detection.
“Most government fraud prevention focuses on large contracts,” explained forensic accountant Marcus Delgado, who has consulted on similar cases. “But the cumulative damage from smaller transactions can be devastating precisely because they fly under the radar.“
Chen allegedly diverted funds to multiple personal accounts between 2020 and early 2025. Court filings show she purchased two properties in Langley and took luxury vacations while maintaining her $72,000 annual salary position at City Hall.
The investigation intensified after Surrey implemented new financial software last year that flagged statistical anomalies in payment patterns. Auditors discovered dozens of companies receiving regular payments despite having no physical address, website, or business registration.
“She allegedly created elaborate documentation for these companies,” said Crown prosecutor Janet Kim. “There were invoices, correspondence, even fake inspection reports to justify payments.”
Mayor Hassan Singh called the alleged breach “profoundly disturbing” in a written statement. “This represents not just a theft of funds but a violation of the public trust that is fundamental to local government.”
The case has prompted Surrey to bring in external auditors from Deloitte to conduct a comprehensive review of financial procedures. City Manager Derek Wilson confirmed that three additional financial control specialists have been hired to strengthen oversight systems.
“We’ve already implemented immediate changes to our approval process,” Wilson told me during an interview at City Hall. “No payment can now be processed without secondary verification, regardless of dollar amount.“
Documents I’ve reviewed show Chen had previously worked in the private sector before joining Surrey’s finance department in 2019. Her employment was terminated in March when the investigation became public.
BC Municipal Affairs Minister Dana Campbell has called for all municipalities to review their financial safeguards. “While we believe this is an isolated incident, it demonstrates how critical proper oversight is when handling public funds,” Campbell said in a statement.
The case bears similarities to a 2022 Edmonton fraud where an accounts payable clerk embezzled $1.6 million through false invoicing before being caught by a coworker who noticed unusual vendor names.
“The most effective prevention is creating a culture where employees feel empowered to question unusual transactions,” said Patricia Wong, director of the Canadian Public Sector Integrity Network. “In nearly 70% of fraud cases we’ve studied, someone noticed red flags but didn’t feel comfortable raising concerns.”
Chen’s lawyer, Michael Tan, declined to comment on specific allegations but stated his client “looks forward to addressing these matters in court rather than through media.”
If convicted, Chen faces up to 14 years imprisonment for the fraud charges alone. The court has frozen her assets, including the Langley properties allegedly purchased with diverted funds.
A preliminary hearing is scheduled for January 15, 2026. The RCMP has established a dedicated tip line for anyone with information related to the case.
For Surrey residents, the alleged fraud represents approximately $5 per citizen – money that Mayor Singh notes “could have repaired roads, improved parks, or enhanced community services.”
City Council has scheduled a special public meeting next week to address resident concerns and explain new safeguards being implemented to prevent similar incidents.
