Former director guilty of embezzlement
FENTON - A former executive director of the Fenton Housing Authority (FHA) pleaded guilty to embezzling more than $33,000.
U.S. Attorney David C. Joseph announced Monday that Gwen Jackson, 35, pleaded guilty before the U.S. Magistrate Judge Kathleen Kay to one count of federal program fraud.
In October 2017, then executive director Jackson was charged with theft and forgery after an annual audit revealed that she had taken over $34,000 from the authority for personal use and written over 50 unauthorized checks to family members and for nonexistent services
Jackson was hired as executive director in Feb. 2017. She was responsible for day-to-day operations of the housing authority complex, which included access to business checks and the accounting ledger.
Jackson embezzled $33,194.76 from March 31, 2017 to Sept. 20, 2017 while she was the executive director of the Fenton Housing Authority, according to the plea.
The plea will become final when accepted by U.S. District Judge Donald E. Walter.
“After receiving complaints about possible theft, law enforcement agents interviewed Jackson and she confessed to fraudulently cashing numerous FHA checks for her personal benefit,” Joseph said.
The FHA has seemingly been plagued with issues of noncompliance. Last year members of the Fenton officials also voted to remove former FHA Chairman Arthur Lee Phillips as a board member, after multiple complaints were made regarding his violation of housing authority guidelines.
An annual audit last year noted that the authority has already paid back the expenditures for nonexistent services totaling $34,105. According to the report, the former executive director issued 15 unauthorized payroll reimbursement checks totaling $8,856 made payable to herself. She also issued 12 checks totaling $12,900 made payable to her husband. She admitted that she created fake invoices and endorsed her husband’s signature to negotiate checks. Other unauthorized transactions included: 10 additional payroll checks totaling $5,562 written to FHA employees; nine checks totaling $3,150 made payable to petty cash and one check for $600 made payable to the director’s cousin for office services.
The audit also noted an entity-wide failure of the Housing’s Board of Commissioners, for failing to exercise proper internal control procedures when hiring Jackson as the executive director and weakening FHA’s financial position.
Jackson faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
The court set the sentencing date for May 9, according to Joseph.