A former senior executive with the Atlanta Housing Authority has been sentenced to prison after admitting to a years-long scheme that involved stealing federal housing assistance funds, fraudulently obtaining pandemic relief money and making false statements on a mortgage application.
Former housing executive sentenced
According to federal prosecutors, Tracy Denise Jones, 61, of Atlanta, was sentenced on 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. Jones pleaded guilty in February to conspiracy to commit theft of government funds, wire fraud and credit application fraud.
PREVIOUS STORIES
- Senior Atlanta Housing executive charged in Section 8, pandemic relief fraud case
- Former Atlanta Housing executive expected to plead guilty in fraud case
- Former Atlanta Housing exec pleads guilty to multiple fraud charges
Jones served as senior vice president over the Housing Choice Voucher Program at the Atlanta Housing Authority from April 2017 until her guilty plea, overseeing one of the nation’s largest Section 8 housing programs. Federal officials said she abused that position to enrich herself while overseeing assistance intended for low-income families.
Section 8 fraud scheme
Prosecutors said Jones used falsified documents to place family members into the Section 8 program and then received housing assistance payments for them to live in a rental property she owned. Housing authority employees generally are prohibited from receiving Section 8 payments for their own properties, and landlords participating in the program are typically barred from renting to family members.
To conceal her involvement, authorities said Jones used a false name and a shell company on housing authority paperwork. Investigators determined she improperly obtained more than $36,000 in Section 8 funds and later attempted to obstruct the investigation by submitting a false affidavit and persuading others to provide false information on her behalf.
Pandemic relief and mortgage fraud
Federal prosecutors said Jones also used two businesses to obtain more than $27,000 through Small Business Administration COVID-19 relief programs. Authorities said she falsely claimed the businesses were operating, had multiple employees and generated significant revenue. When one application was denied, prosecutors said Jones appealed and falsely portrayed herself as a legitimate small-business owner serving low-income families.
Investigators also found Jones committed mortgage fraud while refinancing her rental property. According to court records, she falsely stated on a loan application for nearly $220,000 that the property was her primary residence, was not a rental property and that she owned no other real estate.
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” by diverting limited public resources for personal gain.
