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City of Marlin, FBI investigate after audit finds $1 million possibly missing from city funds

City officials said a former city manager continued to write checks from the city's bank account after he was fired.

MARLIN, Texas — The city of Marlin and FBI are investigating after possibly more than $1 million went missing from city funds, city officials said.

The money may have been taken from the city of Marlin by former administration, according to current city manager Cedric Davis and Mayor Carolyn Lofton. 

The city had a forensic auditor look at financial records Wednesday and found multiple red flags, Davis said. 

Records showed accounts being opened and closed and voided checks dating back from 2017 to as recently as the day before the audit.

Accounts that Davis and the mayor didn't know existed were found under the name of a former city manager who was fired last year.

RELATED: Marlin City Council terminates contract with city manager

Davis said the former city manager was able to continue writing checks from the city because his name was never taken off the account.

According to Davis, the city finance director put in her resignation before the audit, but city officials let her go and asked her not to come back after seeing the audit results.

The city hired an auditor from Dallas to investigate further.

Davis said they aren't sure exactly how much money was embezzled, but it could range from $100,000 to more than $1 million.

The city also sent financial records to the FBI to investigate.

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