LEXINGTON, Ky. (AP) — More than $3.9 million in housing funds that was taken electronically has been recovered, a Kentucky mayor said Friday.
The funds were seized from a private account and refunded to the city of Lexington, a news release from the city said.
The federal rent assistance and transitional housing funds were meant to be transferred to the Community Action Council. But someone managed to divert the funds into a private account, the release said.
“The Lexington Police Financial Crimes Unit, several financial institutions, our Departments of Finance and Information Technology, and local FBI and Secret Service offices have played pivotal roles in the recovery of these funds,” Mayor Linda Gorton said.
Investigators have no evidence of criminal activity by employees of the city or Community Action Council, the release said. The investigation is continuing.
Finance Commissioner Erin Hensley said the city has conducted an in-depth review of its financial procedures and drafted updates.
Chad Cottle, deputy chief information officer, said security is always a leading concern for the Department of Computer Services.
“In light of this theft we will review our procedures and look for additional steps we can take,” Cottle said.
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