Former Atlanta Housing Authority executive sentenced for fraud scheme involving Section 8, COVID relief funds
A former senior executive at the Atlanta Housing Authority has been sentenced to federal prison after prosecutors said she used her position to steal housing assistance funds, pandemic relief money and commit mortgage fraud.
Tracy Denise Jones, 61, of Atlanta, was sentenced May 20, to nine months in prison, followed by nine months of home detention and 15 months of supervised release. She was also ordered to pay $65,598.80 in restitution and a $63,546 fine, according to the U.S. Attorney's Office for the Northern District of Georgia.
Jones previously pleaded guilty on Feb. 2 to conspiracy to commit theft of government funds, wire fraud and credit application fraud.
Federal prosecutors said Jones, who served since 2017 as senior vice president over the Housing Choice Voucher Program at the Atlanta Housing Authority, used her role overseeing one of the nation's largest Section 8 programs to carry out the scheme. The program is funded by the U.S. Department of Housing and Urban Development and provides rental assistance to low-income families, often with long waiting lists.
According to prosecutors, Jones used falsified forms to enroll family members into the Section 8 program and arranged for housing assistance payments to be made on her own rental property. Authorities said she used a fake name and a shell business to conceal her identity and improperly obtained more than $36,000 in federal funds.
Officials also said Jones submitted a false affidavit and encouraged others to provide false documents to obstruct the investigation.
At the same time, prosecutors said Jones obtained more than $27,000 in COVID-19 relief funds through U.S. Small Business Administration programs by falsely claiming her businesses were operating, had employees and generated revenue. When one application was denied, she appealed and made statements claiming she was an honest business owner, according to court records.
Investigators also said Jones committed mortgage fraud by falsely stating a rental property was her primary residence when refinancing a $219,780 loan and by denying ownership of other properties.
U.S. Attorney Theodore S. Hertzberg said Jones "violated the trust of the community, the taxpayers, and the needy families she was supposed to assist."
HUD Office of Inspector General Special Agent in Charge Jerome Winkle said the conduct "undermined assistance intended for vulnerable communities and struggling businesses during the pandemic."
