Inform, Entertain, Inspire
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Feds wrap housing authority fraud case with longest prison term

The FBI raided the South Bend Housing Authority's office in 2019 as part of an investigation into the scheme.
WVPE, Justin Hicks
/
WVPE
The FBI raided the South Bend Housing Authority's office in 2019 as part of an investigation into the scheme.

The final person convicted in a years-long fraud scheme at the South Bend Housing Authority has been sentenced, and he’s received the longest prison term of all the defendants involved.

As assistant director of the housing authority from 2015 through 2019, 47-year-old Albert Smith held a position of public trust. He had access to millions of federal dollars earmarked to maintain public housing so that it’s safe and affordable. Instead, Smith and others gave the federal money to outside contractors for work that never took place. The contractors would cash the checks and kick back a portion to Smith and former director Tonya Robinson.

The scheme stole about $6 million from the federal government.

In May Robinson received a nine-year prison sentence. On Thursday U.S. District Judge Jon DeGuilio sentenced Smith to 11 years in prison. Both Robinson and Smith gambled hundreds of thousands of dollars at casinos. They've each been ordered to pay the government about $3 million in restitution.

In a written statement, FBI Indianapolis Special-Agent-in Charge Herbert J. Stapleton said the sentence “shows that those who violate the public trust will be held accountable.”

Parrott, a longtime public radio fan, comes to WVPE with about 25 years of journalism experience at newspapers in Indiana and Michigan, including 13 years at The South Bend Tribune. He and Kristi live in Granger and have two children currently attending Indiana University in Bloomington. In his free time he enjoys fixing up their home, following his favorite college and professional sports teams, and watching TV (yes that's an acceptable hobby).