Former Bardstown city official accused of embezzling more than $762,000

The former chief financial officer for the city of Bardstown has been accused of embezzling more than $762,000 from the city over a six-year period.

Tracy L. Hudson, 41, of Bloomfield, was indicted by a federal grand jury in U.S. District Court in Louisville last week on one count of wire fraud. She made her initial court appearance Tuesday, the U.S. Attorney’s office and FBI in Louisville announced.

Between 2013 and September 2019, Hudson is accused of taking cash from the city, as well as “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,” according to a news release.

Hudson worked as occupational tax administrator and then as CFO for the city, according to a news release.

The Kentucky State Police and FBI are investigating the case.

Hudson could face up to 20 years in prison if convicted.