RALEIGH — The North Carolina Office of the State Auditor released an investigative report identifying several concerns with the Town of Cary’s spending practices, VISA card use and financial oversight.

Investigators identified procedural and policy violations by officials regarding the expense of public funds. The report also identifies tens of thousands of dollars in purchases that lacked clear government business purpose or appeared excessive, including high-cost meals, alcohol purchases, hotel cancellation and no-show charges, travel expenses, council-related purchases, and spending tied to retreats and promotional activities.

Contributing to these questionable decisions was the abundance of issued town VISA cards. OSA found that over 62% of town employees were given a VISA card, far above the average of 16% in the nine other most populous municipalities in North Carolina. Cary had a total of 828 VISA cards. From January 2024 through December 2025, employees made over 60,000 government credit card transactions totaling $24.2 million.

“The spending exposed in the Town of Cary must be addressed with greater oversight and accountability,” State Auditor Dave Boliek said. “Public dollars being thrown around carelessly while taxes are being raised only creates distrust in government. This report brings spending to light and shows a true accounting of where tax dollars go in Cary. The public has a right to be frustrated, and hopefully this will result in much-needed financial restraint and discipline in the future.”

In its examination, investigators identified purchases including $37,301 for a councilmember’s graduate tuition before it was later reimbursed, $65,653 for a ghostwriter to write a book about former Town Manager Sean Stegall, and more than $1 million spent by Stegall on property without full Town Council review. Over $100,000 in purchases were missing receipts or lacked itemized receipts. Other notable purchases include:

* A dinner purchased for two in Atlanta, including two 20-oz ribeye steaks that were $120 each and a $48 glass of wine.

* $4,164 for dinner for the Town Council and staff at Rey’s Restaurant, a fine-dining steakhouse in Raleigh.

* A $3,419 penthouse stay for Stegall.

* $733 for an executive van to transport employees 12 miles to attend the Wake County Mayor’s Association Holiday Dinner.

* $1,600 spent on 10 pairs of Ray-Ban sunglasses for councilmembers.

* Councilmembers were given a car allowance of $9,626 each year or $802 a month.

* The town spent $121,314 on video production for its 2024 retreat in Wilmington. This included production costs for filming a performance at the retreat and a documentary about how the performance came to be.

OSA also noted the town’s fund balance fell below its minimum policy threshold in recent fiscal years, while spending outpaced revenue and property taxes increased. The report recommends stronger VISA card controls, improved financial reporting, clearer reimbursement policies, council approval thresholds for major purchases, and better transparency and oversight.

In order to preserve the integrity of any potential criminal investigation, OSA has refrained from discussing the specifics of the purchases referred to the Wake County District Attorney and the State Bureau of Investigation, other than those contained within the allegations received.

Next: Cary's response to report.

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