City of Bardstown recovers $350,000 from former CFO’s surety bond company

NC GAZETTE / WBRT RADIO
STAFF REPORT

Monday, Aug. 30, 2021 — The City of Bardstown has agreed to a settlement with the bonding company that provided the surety bond for former city Chief Financial Officer Tracy Hudson.

The City of Bardstown will receive $350,000 in reimbursement from the bonding company. Adding this amount to the $134,121 Hudson turned over to the city after the thefts were discovered, means that $484,121 of the total amount has been recovered.

During her tenure as CFO, the city’s investigation determined Hudson embezzled $764,000 for the city’s accounts. The alleged embezzlement began in April 2013 and continued through Sept. 18, 2019.

In a press release from Mayor Dick Heaton’s office, the City of Bardstown affirmed its commitment to securing the balance of the embezzled funds, and is cooperating with criminal prosecutorial and law enforcement investigative agents.

The city states it will seek restitution from Hudson directly, and/or through the city’s pending civil action in the Nelson Circuit Court, or through its rights as a victim under criminal law.

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