The executive director of the Chatham County Housing Authority has been federally indicted on charges of defrauding the government out of hundreds of thousands of dollars.
JoAnn Johnson Davis, director of the Housing Authority based in Siler City since 2012, used her position to run an elaborate scheme to pay herself, her friends and family with federal money from the U.S. Department of Housing and Urban Development, prosecutors say.
Davis was arrested Friday in Greensboro.
News of the arrest and the federal indictment was first reported on Sunday . The indictment was filed in the Middle District of North Carolina on Feb. 13 and was unsealed Friday.
Prosecutors accuse Davis of using her position to award over $200,000 in contracts for services to friends and family members in exchange for kickbacks that allowed her to profit from the bogus contracts.
Davis and four other people are charged with conspiracy to commit wire fraud. Davis is also charged with wire fraud, aggravated identity theft, program fraud and false statements in violation of federal law, court records reviewed by The News & Observer show.
The four other co-conspirators — Clintess Roberta Barrett-Johnson, Mi’chelle Necole Bell-Johnson, Robert Johnson Jr. and Candace Agatha Brunson-Poole — were directly involved with the fraudulent activity in Davis’ office, according to the federal investigators.
The fraud scheme also involved one former HUD employee and at least two other former employees of the Durham County Housing Authority, indictment documents show.
From January 2016 until April 2020, the Chatham Housing Authority paid out over $200,000 for fraudulent “small purchase” contract work to at least 13 friends and relatives, prosecutors say.
Contract work for services is considered “small purchase” if it is between $2,000 and $100,000, according to HUD regulations.
Another 14 people are included as unindicted co-conspirators in the documents.
Davis previously worked at the Durham County Housing Authority and the Gaston County Housing Authority.