GLASGOW, Ky. — Glasgow Christian Academy is suing its former principal and chief administrator, alleging she misused school funds and diverted money to benefit a Glasgow restaurant she helped start, according to a civil lawsuit filed in Barren County.

Glasgow Christian Academy Inc. filed the lawsuit June 8 against Tracy Shaw, Randy Shaw and Shawboy’s Enterprises LLC, seeking damages and a jury trial.

Tracy Shaw served as the academy’s principal and chief administrator until her resignation, according to information in the lawsuit.

The allegations have not been proven in court.

Barrenside reached out to Tracy and Randy Shaw for comment several times and contacted Glasgow Christian Academy’s attorney, Chris Davenport. As of publication, no responses had been received.

According to the lawsuit, the financial issues began after Glasgow Christian Academy sold its former campus at 600 Cavalry Drive in November 2019.

The property sold for more than $970,000, and the proceeds were placed into an Edward Jones investment account that Shaw had access to, according to the complaint.

The lawsuit alleges Shaw encouraged the academy’s board of directors to sell the property, telling members the move would improve the school’s long-term financial position.

After the sale, the academy moved its operations into Calvary Baptist Church, where Randy Shaw was employed. The lawsuit alleges the school paid rent that was “well above market value.”

The academy says it did not discover the extent of its financial problems until fall 2025, when Shaw informed the board that the school had become insolvent and did not have enough money to continue operating.

“Given the prior sale of real property netting in excess of $970,000 ... this representation shocked the Plaintiff’s Board of Directors,” the lawsuit states.

Shaw resigned shortly afterward, according to the complaint.

Since then, the academy says it has attempted to determine how the school accumulated what it describes as nearly a $200,000 annual deficit without the board being made aware.

The lawsuit alleges financial records were incomplete, making it difficult for the academy to determine how school funds were spent.

However, the academy says records it reviewed showed several expenses it believes were unrelated to school operations.

Among those expenses, the lawsuit points to “recurring, frequent and substantial” purchases from wholesale food suppliers, including Sysco and Gordon Food Services.

The academy alleges those purchases totaled thousands of dollars each month despite the school not operating a kitchen at the time.

The lawsuit alleges Tracy and Randy Shaw formed Shawboy’s Enterprises LLC in December 2021, around the same time the academy says the wholesale food purchases began appearing in school records.

The company is associated with Annie’s Family Kitchen at 1113 Cleveland Ave. in Glasgow.

According to the lawsuit, school funds were diverted to benefit Shawboy’s Enterprises and the restaurant.

The academy also alleges Tracy Shaw directed the school to purchase prepaid gift cards as part of fundraising efforts. The lawsuit states school records show the cards were received only by Shaw and that the academy has found no evidence they were used for school purposes.

The complaint alleges the gift cards, along with other school funds, were instead used for the defendants’ personal benefit.

The academy is seeking damages, a jury trial and other relief from the court.

The case remains pending in Barren Circuit Court. No hearing date has been set, and the Shaws have not yet filed a formal response to the allegations.