GALVESTON - Island officials might end up in a lawsuit with a company asserting the city’s transit department was deceived into transferring almost $700,000 for two garbage trucks to a Kentucky bank account with no links to the legitimate vendor.

City officials April 7 entered into an agreement with Longhorn International Trucks to purchase three 2023 model trash trucks for about $1 million, according to attorneys for Longhorn.

But an apparent phishing email told Galveston staff to send the money to the wrong account.

“Since it appears that the Kyrish Truck Centers Fleet Sales representative’s email system was compromised, this incident could involve litigation, so we are not at liberty to discuss the matter,” city spokeswoman Barbara Sanderson wrote in a statement to The Daily News.

Other city officials declined to comment, citing the potential litigation.

The city council will view the claim at its meeting Thursday night.

The scam is similar to one in which Galveston County was taken for about $500,000 in June 2018.

Three people from the United Kingdom were charged and extradited to the United States for trial in that case and in connection with scams defrauding more than $5 million from various U.S. victims.

The city of Galveston’s fleet and mass transit division wrote a check for the first truck, which the company received, according to a letter from Longhorn’s attorneys. Longhorn then sent the other two trucks, but the city hasn’t paid for them, according to a letter from the company to Galveston staff. The vehicles cost about $347,000 each.

Longhorn learned the city wired the remaining funds, about $695,000, to the wrong bank account, and the city has taken the position that it doesn’t owe Longhorn the money, according to the letter.

David Smith, Galveston director of fleet, transit and special events, emailed Longhorn May 31 saying the second check would be hand delivered June 2, according to the letter.

The city department then got an email staff members thought was from Richard Worndell at Longhorn.

“Could we kindly ask if it would be possible to make this payment through electronic transfer rather than by check?” the email from a phisher said.

Phishing is the common, fraudulent practice of sending emails or other messages purporting to be from a reputable source only to lure someone into sharing sensitive information such as bank account details.

“We are presently implementing some enhancements to our billing system, which could impact the time at which we process check payments,” the email said. “Let me know if this is possible so we can forward our remittance instructions.”

Smith said it would be possible to make the transfer the next week, according to the letter.

The phisher purporting to be from Longhorn gave Smith wiring instructions on June 2, including information for an out-of-state bank and an incorrect Austin address, according to Longhorn’s letter.

On June 29, Longhorn’s accounts payable department asked the city where it sent the payment.

“This is not our account,” wrote a Longhorn representative. “Where did this information come from?”

Without calling to confirm wiring instructions with Longhorn, the city wired $695,418 to an out-of-state bank, according to the letter.

“There are constant warnings about wiring money without verbally confirming wiring instructions,” according to the letter. “Further, several red flags should have gone up for the city because BuyBoard participants must be in the state of Texas, and it would not be likely that a Texas company would do its banking in Kentucky.

“While Longhorn regrets that the city emailed funds to an out-of-state bank without confirming wiring instructions via telephone, Longhorn cannot be the insurer of the city’s mistake.”

B. Scott McLendon: 409-683-5241; scott.mclendon@galvnews.com