Wake DA, SBI join investigation into Cary finances after town manager resigns :: WRAL.com

Wake County District Attorney Lorrin Freeman has consulted with the state auditor’s office and the State Bureau of Investigation in examining the town of Cary’s financial mismanagement.

On Monday, North Carolina State Auditor Dave Boliek said a preliminary look into the town’s finances showed there was potential criminal activity committed by former town manager Sean Stegall.

The town is cooperating with the probe. Stegall resigned in December after the town’s financial management came under public scrutiny.

On Monday, Freeman met with the state auditor’s office to review preliminary findings. The SBI began its investigation into Stegall on Tuesday morning. 

Freeman said investigators will have to look through hundreds of
transactions to determine whether each had a legitimate business purpose.

“It’s not uncommon for there to be times when those credit card expenditures have to be reconciled with the actual expenditure,” Freeman said. “In doing that, which is a fairly standard audit process, you know, they have identified and tagged some expenditures that are going to require, quite frankly, some further research and investigation to determine whether they actually were legitimate or not.”

Freeman said the investigation is uncharted territory for the state auditor’s office. Boliek became state auditor in January 2025 and has also looked into recurring problems with the state’s DMV offices.

“State auditors in the past have done business a little bit differently,” Freeman said. “Being the district attorney in the capital county, I’ve had the opportunity to deal with a number of cases where there has been mismanagement and criminal, frankly, violations of misuse of public funds. You think about the register of deeds case here, a number of state employees over the last 10 years who have been prosecuted by this office.

“This is the first time that we have received a preliminary report from a state auditor like this. But again, it’s the kind of thing that once that flag has been raised publicly, I think it’s important that the public has the confidence that somebody like the State Bureau of Investigation is going to give it a thorough look.”

Cary Mayor Harold Weinbrecht, Jr. released a statement on the investigation:

“We appreciate the willingness of the Wake County District Attorney’s Office and all those who will work to uncover, evaluate, and take necessary next steps regarding potential illegal conduct by former Cary Town Manager Sean Stegall. We 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. Following the laws and ethics that govern us, both as a Town and individuals, is fundamental to everything we do, and we remain committed to transparency, accountability, and upholding the public’s trust.”

Public records show some of his transactions. In 2021, hundreds of dollars worth of Amazon purchases. One Amazon transaction in 2022 showed roughly more than $80 on kitchen towels sent to his home. That same year, he spent nearly $1,000 on
furniture and home decor. It’s unclear whether these were for personal use or for
business.

Those purchases will now be under a microscope.

“This is going through what is a matter of going through of dozens
and dozens of transactions over periods of time,” Freeman said.

Stegall was placed on administrative leave
in November 2025 after a public records request revealed a series of
major expenses that much of the town council said they were unaware of,
including the mayor.

Stegall resigned in December, following allegations of over-the-top spending and
inadequate financial reporting, lack of transparency with the full
council, staff and citizens and creating an unhealthy work environment. Russ Overton, formerly the deputy town manager, was named interim town manager.

Documents obtained by WRAL indicate that Stegall spent
thousands of dollars at a four-star hotel during a conference in Austin,
Texas, in 2023. Records also indicate that the town bought land near Cary
Elementary School, totaling more than $1 million, against the
recommendation of the assistant town manager, and that not every town
council member knew of this transaction. 

At a city council meeting in December, residents asked about Stegall’s
spending, especially his suggestion for the town to pay for another
councilmember’s master’s degree, which ended up costing more than $37,000.