Federal Grand Jury Charges Former Chief Financial Officer of the City of Bardstown with Embezzling City Funds

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LOUISVILLE, Ky – A federal grand jury in Louisville returned an indictment last week charging a former city official with embezzling over three-quarters of a million dollars from the City of Bardstown during her years working with the city.

According to court documents, Tracy L. Hudson, 41, of Bloomfield, Kentucky, embezzled more than $762,000 from the City of Bardstown, Kentucky, while employed first as the City’s Occupational Tax Administrator and then as its Chief Financial Officer.  Between 2013 and September 2019, Hudson stole funds from the City of Bardstown by various means, including by taking cash from the City of Bardstown funds for her own personal use, paying herself for false expense reimbursements, diverting additional payments into her 401k pension plan in excess of the amount withheld from her wages, purchasing personal items on a City of Bardstown credit card without authorization, and crediting payments to her personal accounts with the City of Bardstown despite no actual payment having been made. 

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Hudson is charged with one count of wire fraud in violation of Title 18, United States Code, Section 1343.  Hudson made her initial court appearance today before U.S. Magistrate Judge Colin H. Lindsay of the U.S. District Court for the Western District of Kentucky. If convicted, she faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office made the announcement.

The FBI and the Kentucky State Police are investigating the case.  Assistant U.S. Attorney Stephanie M. Zimdahl is prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


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