Nelson Co. woman sentenced to federal prison after stealing over $750,000 from city of Bardstown

tracy-hudson
tracy-hudson

A Nelson County woman has been sentenced after embezzling over $750,000 from the city of Bardstown.

Tracy Hudson, 42, of Bloomfield, stole $764,093 between 2013 and 2019 when she served as the city’s occupational tax administrator and chief financial officer, according to the U.S. Attorney’s Office for the Western District of Kentucky.

She was sentenced earlier this week to 35 months in a federal prison and ordered to pay $629,972 in restitution to Bardstown and its insurance carrier.

“Hudson stole funds from the city of Bardstown by various means, including by taking cash from the city’s funds for her own personal use, paying herself for false expense reimbursements, diverting additional payments into her 401k pension plan … purchasing personal items on a city credit card without authorization, and crediting payments to her personal accounts with the city despite no actual payment having been made,” prosecutors said.

She was arrested by the FBI in January 2022 and charged with wire fraud.

The primary method by which Hudson stole from Bardstown was by stealing cash, according to prosecutors, most often from cash payments made when individuals were paying for city services.

“The city of Bardstown has previously collected $484,121 total in reimbursement for Ms. Hudson’s thefts, including $134,121 from Ms. Hudson and $350,000 from the company that issued the surety bond for Ms. Hudson,” the city said on its website.

By Ken Howlett, News Director

Contact Ken at ken@k105.com