The city of Blaine this week acknowledged it was the victim of a billing fraud scheme after a local television news station reported that officials sent a $1.5 million payment to scammers posing as a construction firm.
The city issued a news release Tuesday saying the fraud, which occurred in August 2023, is the subject of an ongoing federal investigation that has resulted in several arrests, and that $700,000 of the stolen sum has been recovered so far.
KARE-TV reported Monday that Blaine officials submitted the payment to scammers posing as New Look Construction, an actual company based in Rogers that had done some road construction work for the city.
When staffers discovered the fraud in September, they reported it to local and federal law enforcement immediately, Blaine officials said in their news release. The City Council was informed four days later.