Former Bardstown CFO pleads guilty to stealing more than half a million dollars of city cash

BARDSTOWN, Ky. (WAVE) - The former Chief Financial Officer for the City of Bardstown is facing years in federal prison after pleading guilty to stealing hundreds of thousands of city dollars.

Tracy Hudson, 41, entered a guilty plea last week in front of a federal judge.

Hudson was arrested January 2022 by the FBI’s Civil Rights and Public Corruption Task Force for one count of wire fraud, WAVE News Troubleshooters broke.

According to the indictment, Hudson stole more than $762,000 of city funds between 2013 and 2019.

The FBI says she was using the money and city credit cards for her own personal gain. The indictment states she was making fake reimbursements and diverting cash into her own 401k.

Bardstown Mayor Richard Heaton revealed he suspected Hudson was stealing city money in September 2019.

Hudson was fired in October 2019.

The city collected $130,000 back from her through her attorneys. The case was turned over to the Kentucky State Police at the time.

Hudson faces 20 years in prison in addition to having property obtained with the stolen funds seized by the U.S. government.

Sentencing will take place at a later date.

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