LOUISVILLE, Ky. (FOX 56) — A former Bardstown city employee was sentenced to nearly 3 years in prison Wednesday after embezzling money from the city.

According to the U.S. Attorney’s Office, 42-year-old Tracy L. Hudson, of Bloomfield, embezzled nearly $1 million in funds from the City of Bardstown while working as the City’s Occupational Tax Administrator and Chief Financial Officer.


Court documents show between 2013 and September 2019, Hudson stole funds through various means, like taking city funds for personal use, paying herself false expense reimbursements, diverting funds to her 401(k), purchasing personal items with a city credit card, and crediting payments to her personal accounts with the city without ever actually making payments.

“The primary method by which Hudson stole from the City of Bardstown was by stealing cash, most often from cash payments made when individuals were paying for City services,” reads a Department of Justice news release.

Hudson has been ordered to serve 35 months in prison and pay back $629,972.39 in restitution. She will also serve three years of supervised release.

In addition to the 35-month prison sentence, Hudson was sentenced to a 3-year term of supervised release and ordered to pay $629,972.39 in restitution to the City of Bardstown and its insurance company.