Kentucky courtroom (generic)

LOUISVILLE, Ky. (WDRB) -- A Nelson County woman was sentenced to 35 months in federal prison for embezzling funds from the City of Bardstown.

Tracy L. Hudson, 42, embezzled more than $750,000 when she worked as Bardstown's occupational tax administrator and chief financial officer, according to a news release Wednesday. The Bloomfield woman stole funds from Bardstown from 2013-19 by taking cash from the city's funds for 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 more.

The Department of Justice said Hudson's primary method of taking city funds was stealing cash when people were paying for city services. She also engaged in various activities that generated interstate wire communications to steal certain funds and to conceal her theft, according to a news release.

Along with a 35-month prison sentence, Hudson was sentenced to a three-year term of supervised release and ordered to pay $629,972 in restitution to Bardstown and its insurance company.

The FBI and Kentucky State Police investigated the embezzlement. 

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