SBI investigating Cary's finances under former town manager Sean Stegall

CARY, N.C. (WTVD) -- The Town of Cary remains in the spotlight following the resignation of former Town Manager Sean Stegall, who recently stepped down under pressure from allegations of financial mismanagement.

His departure came after controversy surrounding the use of taxpayer funds, including for councilmember Lori Bush to obtain a master's degree. Questions also surrounded Stegall's leadership over other areas of finance within Town Hall, including procurement card activity.

On Tuesday, the North Carolina State Bureau of Investigation (SBI) confirmed an open investigation into Stegall at the request of the Wake County District Attorney's Office.

Wake District Attorney Lorrin Freeman requested the investigation after a preliminary report from State Auditor Dave Boliek flagged potential fraud in the Town of Cary.

"That's a long way from saying that a criminal offense has happened. We're not at that point," Freeman told ABC11. "But it is enough to say that this is something that needs to be dutifully looked at and had some light shown on it to go in and really try and examine what has happened."

Under state law, Freeman has the authority to request assistance from the SBI. However, to pursue prosecution, investigators must determine criminal intent or find a crime has been committed.

"I think the easiest way for people maybe to understand that is sometimes things may be bad policy may not have been a good practice, but are not necessarily criminal," said Freeman. "So I think that's also why it's really important."

As the investigation progresses, the SBI could also find wrongdoing by others. However, Freeman said that doesn't necessarily mean other members within City Hall are being targeted.

We don't have specific targets there," Freeman said. "We're looking at certainly the town manager's expenditures as part of what is being looked at in terms of where else that goes or where the evidence leads us. We're going to follow the evidence, like we do in any case."

In a statement on Tuesday, Cary Mayor Harold Weinbrecht said, "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," he added. "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."