WINNIPEG, Canada–A credit union here has responded to a member’s lawsuit by saying it isn’t to blame for the fact he lost nearly $650,000 in a scam.

Peter Squire has file suit against Access Credit Union and the Royal Bank of Canada after he lost money from his retirement savings to a fraudster in 2022, according to the CBC.

According to the lawsuit, Squire said he received an unsolicited phone call from a person identifying himself as a Bank of Montreal senior portfolio manager, referred to in the lawsuit as John Doe. 

Two Transfers Made

The CBC reported that the lawsuit alleges John Doe convinced Squire to make two electronic transfers of funds from his Access Credit Union account in November 2022 — one for $175,000 and another a few days later for $473,290.08.

The funds went into a Toronto RBC account controlled by fraudsters, the lawsuit alleges, and the money was not recovered, the CBC reported.

The lawsuit alleges Access Credit Union “negligently facilitated the fraud by failing to ask appropriate questions or make appropriate inquiries.”

In its response in the Court of King’s Bench in Winnipeg, Access Credit Union denied it was negligent and that the losses were not the result of anything that it had done or not done.

‘Due to Own Negligence’

“Any loss alleged by Squire was due to his own negligence, the court document says, including “pursuing a purported investment opportunity based off of an unsolicited telephone call from an unknown individual,” the CBC reported. 

The credit union is further alleging Squire failed “to be wary of unsolicited communications from unknown individuals” and failed to take reasonable steps “to confirm the identity of the purported investment advisor at BMO,” according to CBC.

Squire had alleged in his lawsuit that credit union staff failed to ask appropriate questions about the wire transfers at the time, the report added.

In its defense statement, Access Credit Union said it “inquired as to the nature and legitimacy of the first wire transfer” and in response, Squire “assured ACU that the proposed transfer was legitimate,” according to the CBC.

Assurances Allegedly Provided

In its response, the CBC said ACU further alleges that when Squire went to ACU to do the second wire transfer in the amount of $473,290.08, Squire “again assured ACU that the proposed transfer was legitimate and expressed frustration that ACU was continuing to question the legitimacy of the proposed transfers.”

The credit union said it again offered Squire a bank draft as a lower-risk alternative to making the second wire transfer, and Squire again declined that offer, the statement says, according to the CBC.