Executive Summary
- The FBI is investigating a criminal case involving the misuse of city funds in Florence, Kentucky.
- City officials identified “revenue diversion activities” that began prior to 2023.
- The city received clean financial audits for 2022, 2023, and 2024 despite the alleged ongoing diversion.
- Mayor Julie Aubuchon stated the city is cooperating fully with federal authorities.
The Federal Bureau of Investigation has launched a criminal inquiry into the alleged misuse of municipal funds in Florence, Kentucky, following the identification of “revenue diversion activities” by city officials. The investigation focuses on irregularities within a specific revenue stream that reportedly occurred on multiple occasions.
According to a statement released by Florence Mayor Julie Aubuchon, the city administration contacted federal authorities immediately after detecting the financial discrepancies. Mayor Aubuchon noted that the alleged misconduct began prior to her taking office in 2023. “Once the results of the FBI investigation are released, we will provide additional verified information in the spirit of transparency and accountability,” Aubuchon stated, emphasizing that the city is “cooperating fully” with the independent federal probe.
The timeline of the alleged diversion coincides with a period during which the city received “clean audits” for the fiscal years 2022, 2023, and 2024 from the accounting firm Chamberlin Owen & Company, Inc. The Cincinnati Enquirer reported that former Finance Director Linda Chapman, who retired in September 2024, had previously been credited with uncovering embezzlement in other Northern Kentucky jurisdictions. She was succeeded by Jason Lewis in the fall of 2024. Neither the former nor current finance directors have provided comments regarding the ongoing situation.
Investigative Outlook
The involvement of the FBI indicates a potential escalation in the severity of the alleged financial mismanagement, moving beyond local administrative errors to potential federal crimes. The investigation will likely scrutinize how significant revenue diversion activities could persist despite annual clean audits, raising questions about the efficacy of the city’s internal financial controls during the period in question. As authorities examine the forensic accounting evidence to determine the scope of the loss, the focus remains on identifying the specific mechanisms used to bypass standard oversight. It is important to note that all individuals are presumed innocent until proven guilty in a court of law.
