Former Bardstown CFO sent to federal prison for stealing more than $700K in city funds

BARDSTOWN, Ky. (WAVE) - The former Chief Financial Officer for the City of Bardstown is headed to federal prison for the next three years, WAVE News Troubleshooters have learned.

Tracy Hudson was sentenced on Tuesday in federal court.

Hudson, 41, pleaded guilty in August to stealing hundreds of thousands of city dollars.

She was arrested in January 2022 by the FBI’s Civil Rights and Public Corruption Task Force for one count of wire fraud.

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

The FBI said 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.

As part of her sentencing, Hudson will also have to pay back restitution, a total of $629,972.39, and will remain under federal supervision for an additional three years after her release.