A former Income Asset Management (IAM) employee has funnelled $1.5 million from the company using a bank account used by a "minority sub-custodian". IAM said it suspected fraudulent transfers made from a bank account maintained by its previous sub-custodian relating to its bond administration and custody. The funds fraudulently transferred to the account of a former employee "are not client funds, and the company is not aware of any client funds or assets being lost or removed from safe custody," IAM said. IAM reconciles the cash versus security/asset settlement daily with PCT," IAM said. "The company has focused on resolving this issue quickly as part of its ongoing commitment to safeguarding client assets and maintaining transparent communications with regulators, shareholders and clients.