FINANCE DEPARTMENT

Berett Wilber/KUCB

More than $2.3 million has been returned to the City of Unalaska, after a federal investigation into financial fraud targeting the local government.

Between May 15 and July 9, the city paid $2,985,406.10 to a fraudulent bank account as a result of a phishing email scam. City Manager Erin Reinders said the email sender represented themselves as a known vendor and requested a change in payment method.

When city officials realized the mistake in July, she said they notified the Federal Bureau of Investigation (FBI), as well as the city's attorney and insurance company. 

Zoë Sobel / KUCB

The City of Unalaska is relaunching its search for a permanent police chief.

City Manager Erin Reinders said officials have decided against offering the job to a candidate who came for an in-person interview last month. The man was never named publicly, but Reinders said he wasn't the right fit.

Berett Wilber/KUCB

Updated 7/29/19

Federal agents are investigating how the City of Unalaska was tricked into sending an undisclosed sum of money to a financial scammer. 

City Manager Erin Reinders said the fraudulent activity was detected July 10. The Finance Department realized it had received a fake payment request from an entity pretending to have provided services to the city.

KUCB Staff

After dealing with a handful of electrical outages earlier this month, Unalaska's powerhouse is fully operational again.

That's according to the city's Public Utilities Director, Dan Winters. He fielded questions from Mayor Frank Kelty during Tuesday's brief City Council meeting.

"We're all good to go at the powerhouse? No more upcoming power outages?" Kelty asked of Winters. "He's giving me the thumbs-up."

Berett Wilber/KUCB

Despite spending concerns, the City of Unalaska has adopted a $39.9 million budget for fiscal year 2020 — up 27 percent from this year.

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