LINCOLN- Krystal Freeseman, the former executive director of the Rushville Housing Authority in Sheridan County, faces potential criminal charges for allegedly misappropriating tens of thousands of dollars from the agency. State Auditor Mike Foley detailed the accusations, which include using agency funds for personal expenses such as carpeting for her home, property tax payments on a house owned by her husband, and questionable transactions at various retailers. Foley's office launched an audit after receiving tips about wrongdoing, ultimately identifying $31,016 that Freeseman allegedly took, of which she reimbursed about $13,000 shortly before her dismissal in February.

The Rushville Housing Authority, primarily funded by federal government aid and rent payments, serves low-income residents in the Sandhills area. The housing board became suspicious of Freeseman in January 2024 and conducted an internal investigation, uncovering irregularities in bank statements. Following her termination, the board hired an interim director and a certified public accountant firm to help reconcile accounts and implement new safeguards, including removing the executive director's authority to sign agency checks.

The 26-page audit report released Monday includes numerous allegations against Freeseman, such as providing false information to the accounting firm, manipulating the accounting system for personal gain, and forging board members' signatures on checks. Foley is collaborating with multiple authorities, including the Nebraska State Patrol and the U.S. Department of Housing and Urban Development, to pursue further action against Freeseman, who declined to comment on the matter.

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