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Ex-Bardstown CFO sentenced to prison for embezzling over $700K in city funds

Tracy Hudson, 42, stole more than $762,000 between 2013 and 2019.

LOUISVILLE, Ky. — The former chief financial officer for the City of Bardstown was sentenced on Tuesday to 35 months in prison and ordered to pay restitution.

Tracy Hudson, 42, stole more than $762,000 between 2013 and 2019 while working first as the city’s occupational tax administrator and then as its chief financial officer.

A federal indictment said Hudson took cash from the city for personal use, paid herself for false expense reimbursements, diverted payments into her 401K and purchased personal items on a City of Bardstown credit card.

According to the U.S. Department of Justice, the main way Hudson stole from the City of Bardstown was by stealing cash, most often from cash payments made when individuals were paying for city services. 

The DOJ stated that Hudson also engaged in various activities which "generated interstate wire communications" to steal certain of the funds and to hide her stealing from the city.

In addition to the 35-month prison sentence, the DOJ said Hudson was sentenced to a 3-year term of supervised release and ordered to pay $629,972.39 in restitution to the City of Bardstown and its insurance company.

The FBI and the Kentucky State Police (KSP) investigated the case. 


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