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Pittsburg rec center scam costs city nearly $1M

Pittsburg rec center scam costs city nearly $1M

Pittsburg’s rec center scam sent $913,000 to fraudsters after a doctored email and impersonation scheme tricked city workers.

Pittsburg’s rec center scam left the East Bay city chasing stolen public money after fraudsters tricked employees into wiring nearly $1 million meant for a planned sports complex. The city sent $913,000 on Feb. 12 to what it believed was the account of Discovery Builders Inc., the contractor behind the Dream Courts project.

Officials did not learn the payment had gone to the wrong place until five days later, when the real builder asked where the money was. Court records show the fraud started with a subtle email spoof: the fake Discovery Builders address used an extra lowercase “L,” a small change that helped sell the deception. The scammers then allegedly broke into the email account of Sara Bellafronte, an assistant to the city manager, and used her identity to press a city finance employee to accept updated banking instructions.

In the fake messages, the impostor claimed the new bank information had already been confirmed over the phone and told the employee to make the change. That request was enough to move the city’s payment into a fast-moving web of accounts, drawing in federal investigators and prompting an FBI case. Authorities later issued 18 search warrants involving 116 accounts and said they traced the money to two suspects in the United States and one in Nigeria.

Investigators were able to freeze the account that initially received Pittsburg’s money, which allowed the city to recover about $696,000. City officials said they were also seeking insurance coverage for the roughly $218,000 still missing. Court records say one Illinois man who handled some of the funds appeared to be an unwitting participant, believing he was working for a legitimate company called Tyco Alloy Industries. He later moved the money and used about $217,000 to buy bitcoin, which he sent to a cryptocurrency wallet.

Discovery Builders President Louis Parsons said the company did not blame the city for the loss. He told the San Francisco Chronicle that the attackers were clearly sophisticated and said he felt bad for Pittsburg over what happened. The company has since had a representative physically collect checks from the city. Discovery Builders, a Seeno family company, ultimately received the full $913,000 within 60 days of learning about the scam.

The Dream Courts project is a planned 42,000-plus-square-foot facility that city leaders say is meant to boost sports tourism. Pittsburg approved the project in 2020 for no more than $3 million, but rising costs and labor-union negotiations slowed the job. Parsons said the facility could be finished within the next 60 days, putting the project back in focus even as the fraud case remains open.

City leaders said they have since tightened payment verification, changed financial workflows and adjusted IT staffing. Mayor Dionne Adams called the episode upsetting and said it showed where the city needs to improve its security. The city’s disclosure came Wednesday, after officials said they could speak more freely without hurting the investigation. For American taxpayers and local governments, the Pittsburg rec center scam is a blunt reminder that even a tiny email change can trigger a costly breach of public trust.

Frequently asked questions

How did the Pittsburg scam work?
Fraudsters used a fake contractor email with one small letter change, then impersonated a city employee to push updated banking instructions.
How much money did Pittsburg lose?
The city wired $913,000 and later recovered about $696,000. Officials say roughly $218,000 remains missing.
Who was targeted in the impersonation scheme?
The scammers allegedly hacked the email of Sara Bellafronte, an assistant to the city manager, and used her identity in messages to a finance employee.
What has the city done since the fraud?
Pittsburg said it improved payment verification, changed financial workflows and adjusted IT staffing.
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