Atlanta Housing Exec Charged With Section 8 Fraud

A senior executive with Atlanta Housing is facing a host of federal fraud charges over her alleged scheme to illegally collect Section 8 housing assistance while overseeing the nation’s largest federal rental assistance program for the city.

Federal prosecutors charged Atlanta Housing Senior Vice President Tracy Denise Jones with conspiracy to commit theft of government funds, wire fraud and mortgage fraud. 

Jones enrolled family members in Section 8 housing assistance programs for rental properties she owned, falsified records so they could qualify for assistance, and obscured her ownership of the properties, according to the U.S. Attorney’s Office for the Northern District of Georgia.

She then enlisted others to falsify documents to obstruct the investigation, prosecutors allege.

Jones was arraigned on Dec. 19 before U.S. Magistrate Judge John Larkins. She had been in charge of Atlanta Housing’s housing choice voucher program since April 2017.

Jones was released on a $10K unsecured bond and must not have any contact with “co-defendants and/or unindicted co-conspirators,” according to documents filed with the U.S. District Court for the Northern District of Georgia.

“Tracy Jones’s alleged actions not only showed a blatant disrespect for the law and multiple federal programs, but also jeopardized the availability of HUD-assisted housing for those in our most vulnerable communities,” Jerome Winkle, special agent in charge with the Department of Housing and Urban Development's Office of Inspector General, said in a news release.

Jones’ attorney, Samuel Joseph, didn’t respond to a message seeking comment.

Jones signed a waiver of indictment on Dec. 19 that waives her right to have a grand jury assess the charges. 

Such a move indicates the defendant may have struck a deal with prosecutors, said Alexis D. Gregorian, a former federal prosecutor and now a partner with the law firm Bradley. Even without a deal, Jones, if convicted, would likely receive a sentence of as little as two to four years, said Gregorian, who isn’t connected to the case.

“The issue, of course, with financial crime and fraud, a lot of it depends on the amount of funds stolen. It’s not a huge amount, but it’s still a notable amount,” Gregorian said. “If she ends up pleading guilty and cooperating, she can also receive a certain deduction for her assistance.”

According to federal prosecutors, Jones filled out a series of falsified forms for family members to be admitted to the Section 8 program. She then allegedly received the Section 8 payments on behalf of those family members for properties she owned.

Jones is charged with using a fake name and shell business entity to obscure her connection to the homes, and she allegedly obtained more than $36K of housing assistance in the scheme. 

Federal rules by and large prohibit Section 8 payments going to anyone connected with the oversight or administration of Section 8 housing programs to prevent this kind of alleged self-dealing.

Prosecutors also allege that Jones attempted to obstruct the investigation by submitting a false affidavit and coercing friends to lie and provide false documents on her behalf. 

Jones is accused of committing nearly $220K in mortgage fraud when she refinanced her Section 8 rental property, falsely claiming the home was her primary residence and not a rental property.

Jones is also accused of using her shell business to obtain more than $27K from the Small Business Administration for pandemic relief programs in 2019, when she claimed that she had several employees and produced more than $56K in gross revenues. 

In an appeal of one of SBA’s denied applications, Jones wrote that she was “truly an honest business owner,” according to the U.S. attorney’s office.

U.S. Attorney Theodore Hertzberg said in the release that Jones “exploited a variety of assistance programs and chose to line her own pockets using an alternative identity, multiple business entities, a false affidavit and a cadre of associates willing to lie on her behalf.”

Alongside news of the charges, Atlanta Housing announced it had appointed Shannon Linsey, who has served as vice president of housing operations, as interim senior vice president for the housing choice program, Fox 5 reported.

“As this is an active legal matter, Atlanta Housing is unable to comment at this time. We will follow all appropriate protocols related to both internal and external reviews of all claims,” Atlanta Housing said in a statement Monday, according to WSB-TV.

As of Tuesday afternoon, Jones was no longer listed on Atlanta Housing’s senior leadership page.