Sandpoint City Hall warns residents of ‘sophisticated’ scam involving phony city invoices

By Reader Staff

The city of Sandpoint is alerting community members to an apparent scam perpetrated on a local business that was told to pay a false invoice from the city.

Photo by Ben Olson.

According to a Dec. 17 news release from Sandpoint City Hall, a developer proposing a new subdivision in Ponderay — and appealing Sandpoint’s denial of extending water service — received a message purportedly from the Sandpoint city planner that included “detailed, seemingly legitimate, information regarding the appeal and the city’s water system, citing  ‘Idaho Administrative Code’ and stating that, before the appeal could proceed, the appellant must pay a $25,000 ‘appeal fee.’”  

The city stated that the scam invoice included with the message displayed the city’s logo, further indicated that it originated with the Planning and Zoning Commission, and requested immediate payment by wire transfer. 

Before paying the phony invoice, the developer contacted city staff through legal counsel, after which the scam was uncovered. No money changed hands. 

“This was a sophisticated con, where a local developer, a municipal government and our very processes were targeted,” stated Mayor Jeremy Grimm. “Bottom line: The public needs  to be aware that these scams are prevalent. These types of email messages can come across as entirely genuine, reflecting an urgency that could compel even the most vigilant among us to act. 

“Always double-check the sender’s email address, scrutinize any message requesting payment or sensitive information and, if in doubt, pick up the phone and call the person who sent it,” he added.