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City recovers nearly $4 million in stolen housing assistance funds

Lexington city officials report the urban county government has recovered all funds stolen through an electronic theft.

Nearly $4 million in housing and rental assistance funds were stolen. Officials say criminals inserted themselves into electronic communication between the City and the Community Action Council.

The funds were tracked to three wire transfers into a private bank account. The financial institution froze that account, the missing money was seized and returned to the City.

Lexington Mayor Linda Gorton said the Lexington Police Financial Crimes Unit, several financial institutions, the government’s Departments of Finance and Information Technology, the local FBI and Secret Service offices all played pivotal roles in the recovery of funds.

Investigators have no evidence of criminal involvement of city or Community Action employees. The investigation continues in an effort to identify the criminals.

Stu Johnson retired from WEKU in November, 2024 after reporting for the station for 40 years. Stu's primary beat was Lexington/Fayette government.
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