State auditor to release more findings of probe into Cary government spending

North Carolina’s state auditor is expected to release findings Thursday of his office’s monthslong probe into the town of Cary — a report that is expected to reveal new details tied to allegations of financial mismanagement by a former town official and weak financial controls by the town. 

The release comes months after State Auditor Dave Boliek said preliminary findings of the investigation identified potential fraud.

Boliek launched the review in late 2025 after Cary put Town Manager Sean Stegall on paid administrative leave following scrutiny of town spending. 

Stegall was placed on leave in November after public records revealed a series of major expenses that much of the town council said they were unaware of. Steagall resigned a month later, following allegations of over-the-top spending and inadequate financial reporting, creating an unhealthy work environment, and a lack of transparency with the full council, staff and citizens.

Records indicate that Stegall spent thousands of dollars at a four-star hotel during a conference in Texas in 2023. During Stegall’s tenure, the town also paid more than $1 million for land near Cary Elementary School against the recommendation of the assistant town manager and without the knowledge of every town council member. He is also alleged to have encouraged the use of town money to pay for a councilmember's master's degree, which ended up costing more than $37,000.

Stegall hasn’t responded to multiple requests for comment. A town spokeswoman didn't immediately provide a comment when reached late Wednesday. 

An independent audit previously found material weaknesses in the town's internal controls over financial reporting. Auditors at Cherry Bekaert LLP in February said it found missing financial reports related to $2.1 million in grant expenses eligible for reimbursement. They also noted a reported fraudulent check for $1.3 million that was perpetrated against the town by an outside source in April 2025. 

The audit also found that Stegall didn’t emphasize the need for compliance or accountability, according to Lee Ann Watters, the audit director at Cherry Bekaert. “The former town manager did not always model or reinforce the ethical behavior that is laid out in your policy,” Watters told Cary officials at the time. 

Boliek launched his office’s review in December at the request of several citizens who made calls to the auditor’s tip line. The auditor’s office serves as a watchdog over public spending up and down state and local government. The auditor typically takes up cases of high public interest, but it doesn’t disclose whether its preliminary reviews will result in full audits or investigations, or if the office ultimately decides to terminate a review.

Boliek in January provided preliminary details of his office's investigation. Boliek said he shared the findings during a meeting with the Wake County district attorney and the director of the State Bureau of Investigation. The auditor's review included an analysis of procurement card transactions, which flagged some charges as potentially fraudulent.

“As we move forward with our own review into the town of Cary, the state auditor’s office will continue working with law enforcement officials and the Wake County district attorney’s office on this matter,” Boliek said in a statement at the time. “Our goal is to be as useful as possible in providing information that may support any prosecution of criminal activity.”

As of Wednesday, no charges had been filed in the case. Wake County District Attorney Lorrin Freeman said Wednesday that an investigation is still ongoing. 

“If our review of this report from the state auditor leads to the opening of a criminal investigation, that will be done by a request to the SBI from me and Cary Chief of Police Terry Sult," Freeman said in a statement in January. "As in all matters of public interest, we will exercise all due diligence in examining this matter.”

Cary Mayor Harold Weinbrecht previously said potential violations will be taken seriously.

“Following the laws that govern us, as a town and as individuals, is fundamental to everything we do," Weinbrecht said in a statement in January. "When one person violates the laws meant to protect taxpayers, it contradicts our commitment to serve our community with integrity. We will address any violations consistent with legal obligations and our values.”

Cary has implemented transparency measures, including council work sessions, improved documentation processes and a public records portal to enable people to stay informed, town leaders said earlier this year. "We'll continue being transparent about what we learn and what actions we take as a result,” Weinbrecht said in January.