State Auditor: Nearly $7 million misappropriated by former Pierce County Housing Authority finance director

An investigation by the Washington State Auditor’s office found that the Pierce County Housing Authority misappropriated nearly $7 million in public funds – the largest public fraud on record involving a local Washington state government, the state auditor said.

“This was a shameful breach of the public trust that harms the very people who need affordable housing options the most,” State Auditor Pat McCarthy said in a statement. “I’m proud of our auditors for finding this fraud. And I want to thank the housing authority’s board and staff for helping us conduct a thorough investigation.”

The investigation found that the authority’s former finance director used a variety of schemes to misappropriate $6,948,277 in funds since 2016. The misappropriation was found during a routine financial audit, when auditors questioned wire transfers of large sums of money out of state.

The auditor’s office said the fraud report will be forwarded to the Office of Inspector General for the U.S. Department of Housing and Urban Development and the FBI, which is conducting a criminal investigation. The housing authority ended the finance director’s employment in August.

Follow this link to read the financial statements audit report.

Follow this link to read the accountability audit report.

Follow this link to read the fraud investigation report.

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