Urban-gro sues bank over fraudulent wire transfers

LAFAYETTE — Three weeks after Urban-gro Inc. (Nasdaq: UGRO) reported that it had been hit by $5.1 million in fraudulent wire transfers, the indoor agricultural engineering firm has sued its bank for allegedly allowing the fraud to occur.

In a complaint filed Friday in Boulder County District Court, Urban-gro, a Lafayette-based indoor agriculture engineering firm, accuses Denver-based Sunflower Bank of ignoring established security practices, approving the fraudulent wire transfers despite obvious red flags, failing to follow up once Urban-gro discovered the fraud and refusing to release recovered funds unless Urban-gro signed an indemnity agreement.

Urban-gro has retained Giovanni Ruscitti of Berg…