Theft investigation after $4 million in federal funds for Lexington transferred into private bank account
Lexington Police are investigating the theft
LEXINGTON, Ky. (WTVQ) – The City of Lexington says $4 million in federal funds for Community Action Council were illegally transferred into a private bank account. City officials say they’ve asked the Lexington Police Financial Crimes Unit to investigate the electronic theft. According to the City, the $4 million was intended for federal rent assistance and transitional housing funds.
City officials say investigators believe someone outside of the government, directed an electronic funds transfer into a private account. According to the City, the initial investigation shows no criminal involvement of City or Community Action Council employees.
The City says it found out Thursday, that Community Action Council did not receive the funds. According to the City, the funds were tracked to three wire transfers into a private bank account. That account was frozen by the financial institution Thursday night.
Commissioner of Finance Erin Hensley says the government’s financial system was not compromised. According to Hensley, the city is now working on the fund recovery process.