Former Kentucky official sentenced in $180,000 in thefts for luxury items, home repairs

A Northern Kentucky woman who admitted stealing more than $180,000 from the city of Covington has been sentenced to three years and six months in prison

Allison Donaldson, who was an administrative manager for the city, pleaded guilty to wire fraud and aggravated identity theft.

U.S. District Judge David L. Bunning sentenced Donaldson, 50, on June 8. Bunning ordered her to report to prison Dec. 4.

In her job, Donaldson had a city credit card and access to the credit card information of other employees.

During a two-year period ending in February 2022, Donaldson charged personal items to city cards, including repairs to her Mercedes-Benz, furniture, luxury items such as a Chanel tote that cost $1,899, an outdoor fireplace and remodeling work on her master bedroom and garage, according to court records.

Donaldson also forged receipts to make it appear other Covington employees had made purchases and that they’d been approved by a supervisor, when the purchases were actually for her.

An audit showed that Donaldson used her city credit card and card information on other employees to make $184,736 in purchases for her benefit, Assistant U.S. Attorney Kyle M. Winslow said in a sentencing memorandum.

Donaldson “grossly betrayed the trust imposed on her and undermined the community’s faith in its government,” the prosecutor said.

Donaldson paid the city $165,587 in restitution in March, according to the court record.

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