The Investigative Division of the State Auditor’s Office said former Cary Town Manager Sean Stegall, who was forced to resign his office in November, was now under investigation for “several transactions that are potentially indicative of fraud,” according to a press release on Monday.
State Auditor Dave Boliek met on Monday with Wake County District Attorney Lorrin Freeman and the State Bureau of Investigation to provide an initial forensic analysis.
“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. “Our goal is to be as useful as possible in providing information that may support any prosecution of criminal activity.”
The auditor’s office is also continuing its investigation, according to its communications director, Randy Brechbiel.
“Given it’s an open investigation, we cannot comment on specifics, but our Investigative Division task force is looking at several different areas of spending,” he told the Carolina Journal.
Wake County Republicans said the scandal involving Stegall was simply part of a culture of corruption, to which Democrat officials have routinely turned a blind eye.
“Wake County has a deep-blue corruption problem,” said Laura Macklem, public relations chair for the Wake GOP. “This is an egregious example, but in Wake County, some Democrats do what they want.”
Macklem cited other examples, including a school board official offering a job on the board before interviews had even begun.
Republicans in the county also have gone public with allegations against Cary town councilor Lori Bush, alleging that she misused tax dollars to obtain a master’s degree, at Stegall’s suggestion. Bush has reportedly since repaid the $37,397 she spent on the Northwestern University tuition without the knowledge or approval of some of her fellow councilors.
Her critics say that Bush, who would act as mayor in the absence of Mayor Harold Weinbrecht, should step down for the breach of trust.
“We are once again asking for Mayor Pro Tem Bush to resign for her lack of ethical behavior and covert actions in her capacity on the council,” Wake GOP chair Sandy Joiner said in a recent press release. “We must stop corrupt people like Bush and Stegall from exploiting the citizens of Cary who are being driven out of their homes through excessive taxation.”
Residents also called on Weinbrecht to resign at a Jan. 8 meeting.
“You seem to be more content with keeping control with us as citizens than controlling what’s going on in your own chambers [and] in your own offices,” one speaker said, after Weinbrecht chided audience members from applauding, according to WRAL.
Stegall currently faces a multitude of allegations, including allegations that he used a $1 million discretionary fund to negotiate a land acquisition deal near Cary Elementary School without the council’s approval.
He also is alleged to have spent more than $150,000 in tax dollars to market and promote a book outlining his own personal insights into municipal leadership.
“Top of the Arc: Cocreating a More Innovative, Adaptive, and Effective Local Government” remained on sale for $21.99 (tax included) via the Cary merchandise store as of Tuesday.
Macklem said other examples of Stegall’s lavish spending included thousands of dollars for a luxury hotel and chauffeur during a conference in Austin, Texas.
“He spent $680 a night on a hotel for himself while the rest of the attendees of the conference stayed somewhere else,” she said. “Expenses listed were a minibar. He got a chauffeur service for himself: $150 to take him back and forth seven miles. He is supposed to be a public servant. Instead, he’s serving himself.”
Macklem said that after being told to resign or be fired in November, Stegall, who was compensated some $30,000 per month, delayed his departure by a month to pad his $195,000 in severance pay.
The Cary Town Council initially placed him on administrative leave on Nov. 20, but Stegall did not formally resign until Dec. 13.
Wake Republicans were calling on Stegall to return the severance package, in light of the findings from the auditor’s office.
Wake GOP asked the disgraced Town Manager to return his severance until the Auditor's investigation was complete. Now we see potential criminal activity he must return it now to be in compliance with his contract. #ncpol https://t.co/q8ydGADJgT
— Wake GOP (@wakegop) January 12, 2026
However, in an interview with WUNC, Weinbrecht appeared to suggest that Stegall’s decision to resign, rather than be fired, might allow him to retain his golden parachute despite the criminal probe.
“Well, he had a choice of resigning, and with that, he could receive his severance package,” Weinbrecht said. “[H]e would receive the severance package whether he resigned or was fired, unless he created a criminal act. So it was to his benefit to resign — no disparaging, no lawsuits against the town, and he just goes away.”
Weinbrecht, who was among those contacted by the Carolina Journal, had not replied at press time. However, he issued a statement on Monday in reaction to the bombshell report from the auditor’s office.
“The State Auditor has raised concerns about potential legal violations by Sean Stegall that we take very seriously. Once presented to us, we will review the Auditor’s findings carefully and will partner fully with any additional investigations,” he said in the statement.
“Our decision to act in November was based on values, not legal determinations,” he added. “If legal lines were crossed, that reinforces the importance of acting when standards aren’t being met.”
He did not comment on whether Stegall would be required to relinquish any of his severance pay if criminally charged but noted that Cary officials would “address any violations consistent with legal obligations and our values.”
The Wake GOP called on local Democrats to join in their condemnation of the alleged corruption, but Macklem said they were not optimistic, given the party’s ongoing endorsement of Bush.
“They refuse to speak out about this,” Macklem said.
“This is not a political issue,” she added. “All people in Cary, we pay taxes — it doesn’t matter what our affiliation is. So if there’s ever a time to join together and put politics to the side, it’s now.”