Two former employees with the Cotton Plant Housing Authority pleaded guilty Friday to felony charges for defrauding the housing authority.
Between January 2001 and December 2014, Rhonda Williams and her husband, Gary Williams, both of Des Arc, received more than $52,000 by conspiring to use the housing authority's funds to pay for personal expenses, according to a news release from Chris Thyer, U.S. attorney for the Eastern District of Arkansas.
Rhonda Williams, 50, was the executive director of the housing authority and Gary, 59, was the maintenance supervisor, according to the release.
Each pleaded guilty to felony charges of conspiracy to commit bank fraud and money laundering.
According to federal court filings, the Williamses "solicited and accepted bribes and kickbacks from Housing Authority contractors," who paid them with public money received from the U.S. Department of Housing and Urban Development.
The Williamses also were accused of using the housing authority's equipment for construction on their personal residence, and paying for personal expenses with the agency's credit cards.
In once instance, the Williamses purchased a 2011 Chevrolet Tahoe valued at $32,129 with a check drawn from the housing authority's bank account and made payable to Gwatney Chevrolet in Jacksonville, according to court records.
All bank accounts related to the charges have been frozen, and, under the plea, the Williamses will forfeit all property traceable to the offenses. The full extent of the housing authority's loss will be determined during a sentencing hearing, according to the news release.
Both Gary and Rhonda Williams are represented by Jacksonville attorney Hubert Alexander.
The couple had been under investigation by the IRS Criminal Investigation Division and the U.S. Department of Housing and Urban Development.
On March 4, 2015, a U.S. magistrate judge issued temporary restraining orders preventing the pair from accessing from their retirement policies held by the Lafayette Life Insurance Co. along with bank accounts at the Signature Bank of Arkansas. It was during the period of the restraining orders that the government established probable cause that the bank accounts held proceeds from the conspiracy, according to court records.
Neither the IRS, the Housing Department nor Thyer could be reached for comment Friday afternoon.
The Cotton Plant Housing Authority manages 50 units of public housing that accommodate 175 people, according to information provided by the authority. The authority also administers a Section 8 voucher program that currently has 22 vouchers under contract that provide assistance for 56 people.
Cotton Plant is a city in Woodruff County that had a population of 649 as of the 2010 census.
Metro on 09/03/2016