RUSHVILLE, Neb. - Nebraska’s state auditor has announced an investigation into former Rushville Housing Authority Executive Director Krystal Freeseman for allegedly embezzling tens of thousands of dollars.

“Just when you think you’ve seen it all, along comes the former executive director of the Rushville Housing Authority who, before her recent dismissal, engaged in an apparent pattern of forgery, theft, income tax evasion, and outright embezzlement of tens of thousands of dollars in a not-so-clever and bizarre abuse of the public trust,” Auditor Mike Foley said in a press release.

Foley accuses Freeseman of a variety of financial misconducts, including using public funds to pay her property taxes, purchase a personal computer, buy carpet for her house, and cover her son’s dorm room rent. Additionally, she is accused of abusing the Housing Authority’s credit card for personal purchases, diverting public funds to benefit her husband’s chiropractic business, and inflating her salary while concealing it from tax authorities.

“We have coordinated our investigation with appropriate law enforcement officials and anticipate, if ultimately convicted, severe criminal repercussions for what appears to have been a series of brazen actions by the former executive director to defraud the Housing Authority,” Foley said.

The auditor’s office has accounted for a total of $31,016.52 that Freeseman is accused of stealing from the Housing Authority. Foley noted that Freeseman reimbursed the authority $13,179.26 in February 2024 after realizing her alleged wrongdoings were being uncovered.

“As auditors often remark allegorically, however: One cannot rob a bank on Monday and, when caught, partially repay the bank on Tuesday and expect no consequences. A robbery is a robbery,” the auditor’s press release reads.

In addition to the alleged embezzlement, Foley claims that Freeseman poorly managed the Housing Authority’s finances, frequently causing negative bank balances and accumulating $1,085 in overdraft fees.

Foley is forwarding all documentation and evidence to authorities for their review and potential legal action.