FACTOR Canada has reached a settlement with Scotiabank after nearly $9.8 million was transferred out of the music funding organization’s account in a major cybertheft case. The settlement ends one part of the legal dispute, but related proceedings against other parties are expected to continue.

FACTOR Canada has settled its legal dispute with Scotiabank after nearly $9.8 million was transferred out of the music funding organization’s bank account in a major cybertheft case that affected the Canadian music sector.

The settlement was reached after nearly two years of legal proceedings. The amount of the settlement has not been publicly disclosed.

FACTOR is a Canadian non-profit organization that provides funding support to musicians, music companies, and industry initiatives. The case drew significant attention because the missing funds were connected to money intended to support the Canadian music industry.

The incident became public in 2024, when FACTOR and Scotiabank confirmed that a major withdrawal had been made from FACTOR’s account. The transfer reportedly occurred shortly after the Department of Canadian Heritage deposited $14.3 million for distribution across the music sector, including support for live performances, music videos, and entrepreneurship.

FACTOR said throughout the process that it would pursue recovery of the funds. The organization also emphasized that its staff were not involved in the incident.

Meg Symsyk, FACTOR’s president and CEO, said the organization is now focused on moving forward and continuing its work in support of Canadian artists and the wider music sector.

The settlement does not appear to end all litigation connected to the missing funds. Court materials indicate that Scotiabank is expected to continue pursuing legal action against other relevant parties.

One figure connected to the proceedings is James Campagna, a Quebec man who was previously found in contempt of court. An arrest warrant was issued after the court found that he had failed to comply with various court orders.

Court documents reportedly alleged that funds were transferred through a counterfeit invoice from FACTOR to a Scotiabank account associated with Vipera, a Quebec-based technology company. Campagna was described in the documents as the sole shareholder of Vipera. The money was then allegedly moved into an account connected to a cryptocurrency platform.

No criminal proceedings have reportedly been brought against Campagna at this stage.

The case is part of a broader rise in fraud and cyber-enabled financial crime affecting Canadian organizations. FACTOR pointed to growing losses reported to the Canadian Anti-Fraud Centre, including hundreds of millions of dollars in annual reported fraud losses in recent years.

For Canadian businesses and non-profit organizations, the case underscores the risks associated with payment fraud, counterfeit invoices, compromised banking processes, and rapid fund transfers. Large organizations that manage public or industry funds can be especially vulnerable where attackers are able to exploit payment systems, vendor records, or internal approval processes.

The settlement allows FACTOR to move past one major part of the dispute while continuing its role as a key funder in the Canadian music industry. The broader case remains significant because of the size of the alleged theft, the public funding context, and the ongoing legal efforts to trace and recover funds.

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Originally published on Canadian Fraud News.