FLORENCE, Ky. — The FBI has opened a criminal investigation into City of Florence finances after city officials discovered "revenue diversion" that's been happening for years, according to an announcement from the city.
According to the city's press release, the "revenue diversion activities" were discovered through new financial oversight measures implemented by Mayor Dr. Julie Aubuchon; those measures were added at Aubuchon's direction as part of a reorganization of the city's finance department in 2025.
The issues began before Aubuchon took office in 2023, the city says, and was not a one-time thing.
Once the issue was discovered, the city said its officials immediately contacted the Federal Bureau of Investigation and turned over all relevant information collected.
Now, the city says the FBI is conducting an independent criminal investigation, with the city's cooperation.
"Because this is an active federal criminal investigation, there are limits on what we can share," said Aubuchon in the press release. "But it is important our residents know that it was the city that uncovered the revenue diversion and it was the city that requested the federal investigation. Once the results of the FBI investigation are released, we will provide additional verified information in the spirit of transparency and accountability."
The city said it will not issue any additional public comments on the revenue diversion or the investigation.
The city did not say how much revenue appears to have been diverted — or for how long, exactly. The city also did not disclose where those funds were diverted from, or what services they may have impacted, if any.
Because of the pending investigation, the Kentucky Department of Local Government approved an extension of Florence's annual audit submission.
"I promise you that we will aggressively hold anyone involved with this revenue diversion accountable to the fullest extent of the law, including demanding restitution," Aubuchon said.
Officials have not released any information on any potential suspect, or what charges they could face.
