Police investigate electronic theft of federal funds

The city has asked the Lexington Police Financial Crimes Unit to investigate the electronic theft of approximately $4 million in federal rent assistance and transitional housing funds.

Police believe a person or persons outside the government directed an electronic funds transfer into a private account. The transfer was originally intended for Community Action Council.

Initial information shows no criminal involvement of City or Community Action Council employees.

Yesterday, the City found out Community Action Council did not receive the funds. The funds were tracked to three wire transfers into a private bank account. That account was frozen by the financial institution last night.

Commissioner of Finance Erin Hensley said the government’s financial system was not compromised. The city is working through the fund recovery process and to help Community Action Council ensure continuity of housing assistance, she said.

###

You may also like...

Link to Sunny days ahead – registration now open for 2024 summer camps
Feb. 21, 2024 9:33 am

Sunny days ahead – registration now open for 2024 summer camps

Registration is now open for a variety of summer camps being offered by Lexington Parks & Recreation
Link to Compost workshops now open to all Fayette County residents
Feb. 20, 2024 12:51 pm

Compost workshops now open to all Fayette County residents

The City of Lexington is hosting its third round of home composting workshops.

Link to Commuters encouraged to drive cautiously as snow moves in
Feb. 16, 2024 4:42 pm

Commuters encouraged to drive cautiously as snow moves in

City crews are on duty in preparation of snowfall expected this evening.