Mayor Michael Elliott said town council first noticed what appeared to be clerical errors with some T4 forms for staff in February.
Further investigation revealed that some money was missing.
“It looked like there was some money missing on a regular basis. We didn't debate it very long; we made a quick decision and contacted the (Surêté du Québec),” Elliott said.
With what seems like every stone in the province currently being overturned by the Charbonneau commission, Elliott and other local residents are worried how the allegations will affect the small town’s reputation.
“It is still a very small town, so I am quite shocked that this would go on,” said Hudson resident Pavlina Dadakova.
“I guess it's only a matter of time before every municipality is being investigated one way or another, but I am a little bit surprised to hear about it here in Hudson,” said Wendy Zubis, another local.
The SQ is expected to turn the file over to UPAC, Quebec’s anti-corruption squad.