The town of Cary on Monday elevated the deputy town manager to interim town manager after weeks of questions about spending under then-manager Sean Stegall.
Stegall resigned on Sunday, agreeing to a severance package that will pay him $194,832, or the equivalent of six months of his salary.
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Deputy Town Manager Russ Overton will serve as the interim town manager while the town searches for a permanent replacement.
"It has been hard, very hard for me, not being able to share more than we have up to this point," Mayor Harold Weinbrecht said during Monday's emergency meeting. "It's been sad and emotional to unwind our relationship with Sean because for many of us, we saw Sean as our friend, not just simply an employee."
Stegall was placed on paid administrative leave on Nov. 21 after a public records request revealed a series of major expenses that much of the town council, including the mayor, say they were unaware of.
Weinbrecht said three issues led the town to place Stegall on leave:
- Over-the-top spending and inadequate financial reporting
- Lack of transparency with the full council, staff and citizens
- An unhealthy work environment
"There may be more to learn, so we have hired a law firm specializing in employment investigations to make sure we are fully aware of any problems, so that something like this will never happen again in Cary," Weinbrecht said.
Tap to watch: 'Sick, sad and mad': Cary mayor calls decisions by now former town manager 'disturbing'
Weinbrecht estimated that the firm's work will take several months.
"We will keep you updated on our findings," Weinbrecht said. "I was absolutely stunned about the revelations that we've had, and what's come forward so far. I'm sick. I'm sad, and I'm mad."
Weinbrecht said he is not aware of any conduct by Stegall that crossed the line into criminal.
"That's important," Weinbrecht said. "Our finances are in good shape."
State auditor to review Cary finances
State Auditor Dave Boliek announced Friday that he would be looking into the town's policies to determine whether to conduct an audit or investigation into spending by town employees. Boliek said the action came after requests from several citizens who made calls to the auditor’s tip line.
Hotel nights, missing checks, land purchases
WRAL News obtained documents that show Stegall spent thousands of dollars at a four-star hotel during an out-of-state conference when other employees stayed across the street.
At a 2023 conference in Austin, Texas, he spent more than $3,000 on a hotel stay for four nights at a different hotel from where other town employees stayed.
While the seven town employees stayed across the street, Stegall booked a different "4-star hotel" that cost about $680 a night, plus hundreds more for a "luxury" car service to and from the airport.
When WRAL News asked town officials if Stegall's spending was the he was put on leave, no one responded.
During Monday's emergency meeting, Weinbrecht called decisions made and given by Stegall, "disturbing."
Former council member Jennifer Robinson, who was on the Cary Town Council when it unanimously decided to place Stegall on leave, said, "There were several concerns we had about what was happening at town hall that warranted that decision."
According to emails obtained by WRAL, Robinson wrote Stegall and council members on Aug. 20, raising red flags about the town's budget and finance decisions and requesting work sessions to improve transparency.
"The response I received from at least one councilmember is that it was perceived (as) political," Robinson said.
In the email, Robinson requested information over how the town resolved a large fraud incident, in which the town sent a $1.3 million check to a vendor in the mail, where it got intercepted by a bad actor.
"The financial institution brought that matter to our staff, and unfortunately it was not triggered as a fraudulent check, so that money went out the door from the town," Robinson said.
It's unclear whether the town was ever able to get the money back.
Records also show the town of Cary purchased two parcels of land near Cary Elementary School totaling more than $1 million against the recommendation of the assistant town manager, and not every council member knew about the transaction.
At a city council meeting last week, 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.
Councilmember Lori Bush said she followed guidance she was given and that she paid the money back in full.
"I accepted the offer with the honest belief that it aligned with the town’s approach to ongoing learning," Bush said. "Recently, I learned that this proposal to pay had not been shared with all of our council."
WRAL News asked Robinson whether members of council are able to receive funds for professional development.
"We don’t have a policy that says whether or not a council member can take funds for a grad program, so I guess the question is, in the absence of a policy, does that mean it’s OK?" Robinson said.
WRAL News has asked for "all policies relating to spending for town employees," which we also haven't received.
WRAL News has reached out multiple times to phone numbers listed for Stegall and went to his home for comment. We have yet to hear back.