City of Bardtown’s former CFO arrested Tuesday morning by federal marshals

NC GAZETTE / WBRT RADIO
STAFF REPORT

Tuesday, Jan. 25, 2022 — The former chief financial officer for the City of Bardstown was arrested by U.S. Marshals on unnamed federal charges Tuesday morning.

Tracy Hudson, 41, of Bloomfield, was arrested at 10:13 a.m. Tuesday morning and lodged in the Oldham County Detention Center.

Hudson is facing unspecified charges related to her alleged role in embezzling $764,000 from the City of Bardstown during her stint as chief financial officer between April 2013 and September 2019

To date, the city has recovered some of the money — $134,000, which Hudson returned to the city through her attorney not long after she was suspended from her official city duties, and $350,000 which the city received in reimbursement from the company that provided Hudson’s performance bond.

In an August 2021 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.

At the time, the city stated 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.

More details will be posted as they become available.

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