State Auditor finds questionable spending and intimidating work conditions in Cary
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A much-anticipated report on the town of Cary's management and finances found a litany of questionable spending decisions and a hostile work environment.
Why it matters: The report comes after the resignation of former Town Manager Sean Stegall, who came under investigation after public records requests unearthed several questionable financial decisions.
- Wake County District Attorney Lorrin Freeman says a criminal investigation into the financial management of North Carolina's 7th largest municipality is ongoing.
- "Our work will be centered on identifying areas of mismanagement that also may be violations of the criminal law," Freeman said in a statement. "While troubling and in need of correction, not all mismanagement constitutes crimes."
Driving the news: The report from Republican State Auditor Dave Boliek comes seven months after Stegall resigned from his job while on administrative leave. Stegall became town manager in 2016.
- Efforts to reach Stegall for comment have not been successful.
The big picture: The report, which is more than 2,000 pages long, finds that the town manager and Cary staff leadership operated without much transparency over the town's finances, while the town council remained "hands-off."
- "During our investigation, it became apparent ... that the [town] council's approach to financial matters was to delegate them to a small number of people while limiting its own information and involvement," the report states.
- This choice, the report found, led to the town budget being amended frequently at the discretion of staff rather than in a collaborative effort with council.
Zoom in: Among the questionable use of funds made by town staff, according to the report, were:
- An abundant issuance of p-cards (a type of debit card that town employees could use on town business): Sixty-two percent of town employees were given p-cards — a much higher percentage than other large cities in the state — and they spent $24.2 million on them between 2024 and 2025.
- Excessive travel and meal expenses: Like a $490 steak dinner on the town manager's p-card. The meal was reportedly for the town manager and mayor, but the mayor presented evidence he was actually on a flight.
- Another receipt showed a $3,400 stay a hotel penthouse for the town manager. Stegall reported the charge was for "multiple staff," but no other town employees stayed at the hotel.
- Tuition reimbursement: The town paid more than $37,000 toward council member Lori Bush's tuition at Northwestern University, despite that not being a benefit allowed for council members. The report alleges that Stegall made the decision to reimburse the tuition. Bush has since paid the town back.
- Land purchases without council knowledge: The report found that Stegall led two town land purchases totaling over $1 million without alerting council. The two acquisitions were each under $1 million, which was below the town's threshold for alerting council. The report recommends that policy be amended.
- Ghostwriter fees: The town helped pay a ghostwriter around $65,000 to write a book on a behalf of Stegall called "Top of the Arc." The book has only sold 266 copies, while around $150,000 has been spent on the whole project. Mayor Harold Weinbrecht told the auditor's office that no one on council realized town money had been put toward it.
- Hostile environment: The report says it found a working environment that was hostile and discouraged questioning leadership's decisions. "Multiple people spoke of having observed something they thought they should report," but had not outlet to do so, according to the report. The auditor's office also received reports of Stegall exhibiting acts of "intimidation" and "bullying."
Go deeper: Read the whole report