Lexington recovers nearly $4M from electronic theft

LEXINGTON, Ky. (WTVQ) — The City of Lexington has recovered all the funds stolen from electronic theft, Mayor Linda Gorton said Friday.

The missing money — $3,905,837 — was seized from a private account and refunded to the city. Gorton said the city originally intended to transfer the nearly $4 million of federal rent assistance and transitional housing funds to the Community Action Council. The money was taken and diverted into a private account.

“The Lexington Police Financial Crimes Unit, several financial institutions, our Departments of Finance and Information Technology and local FBI and Secret Service offices have played pivotal roles in the recovery of these funds,” Gorton said in a press release. “We appreciate their expertise and swift response.”

The investigation into the theft continues by local FBI and Secret Service offices. The FBI is conducting a criminal investigation; the Secret Service is investigating the electronic transfers. Gorton said investigators have no evidence of criminal involvement of city or Community Action employees.

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