Investigation Of Executive Director Came As A Shock To Ocean City Housing Authority, Chairman Says

OCEAN CITY, NJ — The Ocean City Housing Authority (OCHA) is expected to terminate a shared services agreement for its executive director position and appoint an interim director when it meets next week, OCHA Board of Commissioners Chairman and City Councilman Bob Barr said on Wednesday.

Executive Director Alesia Watson, 54, of Galloway, admitted that she embezzled between $6,500 and $15,000 in funds received by the authority from the U.S. Department of Housing and Urban Development (HUD). OCHA entered into a shared services agreement with Brick for her services last year.

“We were in complete shock,” Barr said, noting OCHA knew nothing of the investigation until the news that she pleaded guilty hit on Monday. “She never told anyone she was under investigation. We were never told anything by federal authorities.”

Watson served as a part-time director for both the Ocean City and Brick housing authorities. Ocean City paid Brick about $60,000 a year for her services, and the contract was set to expire in February of next year.
Both agencies administer affordable housing programs for low-income seniors and the disabled in their respective towns. The shared services agreement dates to 2014.

A hearing on her status with Brick is scheduled for Friday. Barr said that regardless of the outcome of that hearing, he will recommend OCHA terminate its agreement with Brick and appoint an interim executive director when it meets Tuesday evening, May 16. He said he believes the other members of the Board of Commissioners support this course of action.

The interim director would be in place until a permanent replacement can be found. The Board of Commissioners is looking at options for an interim replacement, Barr said.

As executive director, Watson had access to two credit cards maintained by OCHA. She admitted that from December 2013 through March 2015, she bought 69 MasterCard gift cards using the housing authority’s credit cards, Acting U.S. Attorney William E. Fitzpatrick said on Monday.

She then used the gift cards for personal expenses not related to the housing authority. She also admitted to allowing her friends and family to use those cards, according to authorities.

Watson used the funds received from HUD and administered by the housing authority to pay the credit card bills associated with the purchase of the gift cards.

Watson’s role with Brick wasn’t mentioned in court documents, and there was no indication of any wrongdoing related to her role with that agency.

Barr said he was surprised by the federal investigation, but not completely surprised by her actions. He said OCHA has had some financial issues it’s been trying to work through. He also decried the fact that Watson didn’t tell the rest of the board about the investigation.

“I spoke to her on Monday afternoon about routine business,” Barr said. “She violated the public trust, and that’s unacceptable. She should be ashamed of herself.”

Photo via Ocean City Housing Authority