City of Lexington: Theft investigation underway after about $4 million lost in federal funds

Generic: Day Police Lights
Posted at 5:16 PM, Aug 26, 2022
and last updated 2022-08-26 17:17:47-04

LEXINGTON, Ky. (LEX 18) — The Lexington Police Financial Crimes Unit is investigating an electronic theft of approximately $4 million in federal rent assistance and transitional housing funds.

Police believe someone or a group of people outside of government directed an electronic funds transfer into a private account. The transfer was originally intended for Community Action Council.

The city says on Thursday, they learned 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 Thursday night.

At this point, authorities believe no city or Community Action Council employees were involved in the theft.

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.