$6.9 Million Taken In Pierce County Fraud Scheme, Audit Finds

TACOMA, WA — A former finance director at the Pierce County Housing Authority siphoned nearly $7 million in taxpayer funds during a fraud scheme that began in 2016, according to a new report from the Washington State Auditor's Office. Officials said the case is the largest of its kind for a local government in Washington history.

The PCHA provides affordable housing for thousands of low-income residents in Pierce County. According to the News Tribune, it had an operating budget just under $34 million last year.

The Auditor's findings allege Cova Campbell started making fraudulent purchases using housing authority credit cards in March 2016. In July of that year, the report says, Campbell sent money to her own bank account several dozen times, disguising the transactions as legitimate payments to vendors.

Investigators found, in 2018, Campbell sent housing authority money to Oklahoma, where she had recently bought property. In 2019, the auditor's office discovered Campbell had begun directly wiring funds from the housing authority to her bank account.

According to the State Auditor's Office, Campbell admitted to misappropriating the funds but claimed she had been told to do so by the authority's executive director. Investigators said they found no evidence that happened.

Since the scheme came to light, the housing authority says they have made several changes to prevent future thefts.

"The Housing Authority has implemented new, stricter controls to protect both the agency’s and the public’s assets and integrate ongoing oversight and monitoring to assure those controls are consistently maintained,” said Housing Authority Chair Sally Porter Smith “Our staff, management and Board of Commissioners are dedicated to our mission of safe, clean and affordable housing. We will re-build the trust and confidence of our housing clients, landlords, renters and our community.”

The News Tribune reports the scheme came to an end in July 2019, and Campbell was fired Aug. 8.

Washington State Auditor Pat McCarthy said the report's findings would be forwarded to the U.S. Department of Housing and Urban Development, and the Federal Bureau of Investigation for a criminal investigation.

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

Read the auditor's complete report here.