Wake County DA requests criminal probe into spending of Cary town funds

Wake County District Attorney Lorrin Freeman and Cary Police Chief Terry Sult have requested that state investigators open a formal probe into allegations of misuse of Cary town funds, including those involving the former town manager.

“I think this is something that needs to have a thorough review by the State Bureau of Investigation,” Freeman told The News & Observer.

This comes a day after State Auditor Dave Boliek announced that preliminary findings from his office indicate “potential criminal activity” by former Cary Town Manager Sean Stegall.

Two investigations are already underway related to Stegall, who town council members pressured to resign in December.

Freeman told the News & Observer that she expects the SBI investigation will likely take months, which is standard for a financial examination. Next steps will include a full forensic review by the state auditor, and the town will likely have someone do an audit, she said.

“This will not be a quick process,” Freeman said.

The N&O reached out to Stegall, who was Cary’s town manager from 2016 to mid-December, for comment.

State auditor’s preliminary findings

Boliek’s announcement Monday alluded to concerns about procurement card transactions.

“An initial forensic analysis conducted by OSA’s Investigative Division that indicates potential criminal activity by the former Town Manager of Cary,” the auditor’s office announced Monday.

In response to Freeman’s decision, Cary Mayor Harold Weinbrecht released a statement Tuesday saying town officials are confident “that thorough investigations will lead to changes that will help ensure this doesn’t happen again, further strengthening our ability to serve the community. In the meantime, we will participate appropriately in the investigative process and as directed.”

Stegall was placed on administrative leave in November due to questions over town spending and other decisions made under his leadership. The mayor and town council ultimately forced him to resign shortly after.

It was an anonymous public records request that revealed Stegall’s questionable decisions while town manager. Now, the State Auditor’s Office, a law firm hired by the town and the Wake County District Attorney’s Office are investigating the allegations.

The State Auditor’s Office met with Cary officials in mid-December, the agency confirmed to The N&O at the time. It conducted a “preliminary review” of the allegations made against Stegall.

The office announced it had been in communication with Wake County for at least two weeks prior to giving its report to Freeman.

“Our goal is to be as useful as possible in providing information that may support any prosecution of criminal activity,” State Auditor Boliek said in a Monday press release.

Boliek said his investigative unit did an initial forensic analysis of spending decisions made under Stegall’s leadership. That includes “several transactions that are potentially indicative of fraud.”

Cary’s internal investigation

In December, Cary hired the law firm Womble Bond Dickinson to conduct an investigation into Stegall “independent of the state auditor’s efforts,” Weinbrecht said in a statement posted to the town’s website.

Weinbrecht said the firm was hired “to ensure we’re looking at everything that’s important to our organization and our community.”

Womble Bond Dickinson has done some work with the town prior to being hired for this task. The firm acted as the town’s bond consultant in the past, including in 2018.

The N&O reported on questionable spending and other allegations made about Stegall’s time as town manager in the weeks leading up to his resignation. That includes town money spent to fund Mayor Pro Tem Lori Bush’s Northwestern master’s degree, money that she returned; an over $1 million land deal made without the full council’s knowledge; and over $150,000 spent on a book, in part, lauding Stegall’s leadership.

Stegall also submitted a lost-receipt form for $3,400 spent at a hotel “for multiple staff” during a 2023 trip to Austin, Texas. Staff attending the conference stayed at a different hotel, according to documents obtained by The N&O.

This story was originally published January 13, 2026 at 4:06 PM.

Nathan Collins

The News & Observer

Nathan Collins is an investigative reporter at The News & Observer. He started his career in public radio where he earned statewide recognition for his accountability reporting in Dallas, Texas. Collins is a Pulitzer Prize finalist and a former professional musician.