LEXINGTON, Ky. (FOX 56) — The city of Lexington has recovered the federal funds stolen during an electronic transfer, Mayor Linda Gorton said in a statement on Friday.
The missing funds, totaling $3,905,837.05, were seized from a private account and returned to the city.
“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,” Gorton said. “We appreciate their expertise and swift response.”
Gorton said the FBI is currently conducting a criminal investigation while the Secret Service is investigating the electronic transfers that led to the theft.
Lexington Finance Commissioner Erin Hensley said the city has reviewed its financial procedures to help prevent incidents of this sort from occurring again.
“We are closely examining our procedures, and are taking additional steps to prevent fraud, from inside or outside the government. We have started additional training within the Department to keep cyber-security a central focus,” Hensley said. “In addition, our outside auditors are conducting independent tests of our procedures and will make recommendations for improvements.”
Investigators have no evidence that an employee of the city was criminally involved in the theft of the funds.