Potential criminal, fraudulent activity by ousted town manager probed

(The Center Square) – From well-regarded municipal management in North Carolina inspiring a book on it to an abrupt exit amid allegations of misusing taxpayer money, the town of Cary and its former manager are nearing the tumultuous end.

Already, Sean Stegall has gone from a Nov. 20 placement on administrative leave to a Dec. 13 resignation with severance settlement for six months of salary. Monday, first-term Republican state Auditor Dave Boliek said he met with Wake County District Attorney Lorrin Freeman and the director of the State Bureau of Investigation related to potential criminal activity.

“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 an emailed statement to TCS. “Our goal is to be as useful as possible in providing information that may support any prosecution of criminal activity.”

Russ Overton is the interim town manager, appointed by the Town Council on Dec. 15.

Boliek’s office said data in an initial forensic analysis “included a procurement card analysis of several transactions that are potentially indicative of fraud.”

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For its part, Cary has provided a portal on the town website offering transparency related to Stegall’s exit. Included is the council manager relationship, employment documents, land purchases, raising Cary’s profile, trolley purchase and resale information, and tuition reimbursement.

Freeman, the third-term Democrat first elected in 2014 not seeking reelection this year, said review of Boliek’s analysis would determine if a request were made from her and Cary Police Chief Terry Sult to the SBI. Mayor Harold Weinbrecht Jr. said the administrative leave decision two months ago was based on values rather than legalities.

Among the actions in question by the town of Stegall are “over-the-top spending and inadequate financial reporting; lack of transparency with the full council, staff and citizens; and an unhealthy work environment created by Sean with many of the staff he worked most closely with.”

Stegall made a land purchase for the town of nearly $1 million without knowledge of the full town council membership.

Terms of the severance agreement include $194,832 in pay, less applicable withholdings. This is equivalent of six months’ salary. Stegall’s initial contract Aug. 9, 2016, had annual salary of $210,000.

Stegall, through a ghostwriter, helped author the 2025 publication “The Top of the Arc: Cocreating a More Innovative, Adaptive, and Effective Local Government.” Cary’s leadership philosophy – his vision for running cities of the future – and accomplishments are chronicled. The settlement includes “all rights of copyright throughout the universe in all languages and media” held by the town.

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Previously, Stegall shared in the credit for Cary being among the “Best Places to Live” as ranked by Money magazine; No. 1 for Remote Working, as chosen by SmartAsset; No. 1 for Renters, as chosen by USA Today; and No. 2 for Best Place to Live, as chosen by Livability. Downtown Cary Park was a finalist for the 2025 ULI Americas Awards for Excellence.

Cary, a Wake County community within the Triangle, had population in the 2020 U.S. Census of 174,799. The July 1, 2024, estimate was at more than 182,000. In the 2020 census, the demographics included 60% white; median owner-occupied housing units value of $525,200; 70.2% of the age 25 and older population with a bachelor’s degree or higher; and median household income of $129,399.

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