By Jack Brammer
NKyTribune reporter
Allison Donaldson, the former administrative manager for Covington’s public works department, was indicted Thursday by a federal grand jury on wire fraud and aggravated identify theft for allegedly using employee credit cards to make more than $150,000 in purchases for her and her home.
The U.S. Attorney’s Office for the Eastern District of Kentucky announced Friday that Donaldson, 49, was charged with four counts of wire fraud and three counts of aggravated identity theft.
The indictment said the alleged crimes occurred while she worked for the city from 2005 to 2022.
It said she had access to the department’s credit card information and used it knowingly to defraud the city with personal purchases that included repairs for a Mercedes Benz, Crate & Barrel furniture, and designer counter stools.
(Photo from City of Covington)
After the purchases, Donaldson used fake receipts, the indictment said.
Donaldson, who could not immediately be reached for comment, is to appear in U.S. District Court at 2 p.m. September 19.
If convicted, she faces up to 20 years on each count of wire fraud, up to two years, to run consecutively on each count of aggravated identity theft, and judgments for restitution and forfeiture of the property attained through the fraud.
Charges in an indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The city said in a statement that Donaldson, described as a business manager, resigned March 4 after being confronted with alleged irregularities related to credit-card purchases.
The city contacted police, cooperated with the investigation and is working to recover any taxpayer money that was misappropriated, the statement said.
Covington Mayor Joe said in a statement that the investigation found Donaldson “worked hard to mislead her fellow workers.
“She intentionally evaded the Finance Department’s internal controls. She abused the trust of her co-workers and supervisors so she could steal public money to supplement a luxurious lifestyle.
“It is shameful and disappointing behavior that deserves aggressive prosecution and punishment.”
Participating in the investigation were state Attorney General Daniel Cameron; Carlton S. Shier, IV, U.S. Attorney for the Eastern District of Kentucky; Jodi Cohen, special agent in charge, FBI, Louisville field office; and Chief Spike Jones, Kenton County Police Department.
The case was presented by Kyle Winslow, assistant United States Attorney. Also appearing before the grand jury was Mike Shafer, an investigator with the Office of the Attorney General’s Department of Criminal Investigations and FBI task force officer.
The case was investigated by Detective Andrew Kenner of the Kenton County Police Department and Leslie Broussard of the Attorney General’s Department of Criminal Investigations.
