Georgia housing agency victimized in $2.5M fraud scheme, prosecutors allege

Melanie S. Thompson, the former executive director of Georgia’s Hinesville Housing Authority, and business partner Toriono L. Byrd face federal charges for an alleged $2.5 million fraud scheme involving false invoices, kickbacks and fraudulent payments across roughly four years. AI Summary

The former executive director of Georgia ’s Hinesville Housing Authority and a business partner face federal charges in what prosecutors describe as a $2.5 million scheme that used false invoices, kickbacks and fraudulent payments over a four-year period.

Melanie S. Thompson and Toriono L. Byrd were indicted July 8 on charges including conspiracy to commit wire fraud , wire fraud and making false claims, according to a 20-page indictment in the U.S. District Court for the Southern District of Georgia .

The alleged fraud occurred from September 2019 until October 2023 — with Thompson accused of using her position to award contracts to Byrd without following standard bidding procedures.

Byrd operated Southeastern Coastal Property Maintenance Services LLC , a contractor that did business with the agency.

Thompson is accused of creating false invoices on her work computer, sometimes emailing them to herself, and authorizing payments for work that was either never completed or far exceeded the actual value of services rendered.

The indictment alleges Thompson directed repeated payments in amounts of $5,000 or less — a practice prosecutors say was intended to avoid detection by others at the agency. Byrd then allegedly paid kickbacks to Thompson from accounts he controlled.

Prosecutors also allege Thompson and Byrd were involved in a romantic relationship that was never disclosed to the Hinesville Housing Authority.

The Hinesville Housing Authority provides affordable housing to low-income individuals, families, seniors and persons with disabilities. It operates 128 public housing units and other rental assistance programs in Liberty County, Georgia.

The scheme included Thompson incorporating Strategic Logistics Transportation Services LLC in September 2019 and purchasing two semi-trucks for nearly $30,000 soon thereafter.

During roughly the same period, Thompson is accused of directing several fraudulent “bonus” payments to her own Navy Federal Credit Union account — also totaling nearly $30,000.

The trucks were registered to Strategic Logistics Transportation Services LLC, which Thompson controlled, the indictment states.

In September 2020, Thompson issued a $5,000 cashier’s check from her personal account as a security deposit for a commercial lease she held jointly with Byrd, prosecutors said.

The pair also stored the semi-trucks at the same business address as the housing authority, according to the indictment.

The indictment details dozens of fraudulent payments, with checks and wire transfers said to be flowing from Hinesville Housing Authority accounts to ones controlled by Byrd.

On March, 19, 2021, alone, prosecutors allege Thompson authorized 50 fraudulent checks totaling more than $194,000.

She also allegedly authorized a monthly “stipend” coded as LCCHDO — a reference to the Liberty County Community Housing Development Organization — to which she was not entitled.

The government is seeking forfeiture of at least $3,039,516.76, along with a property in Savannah, Georgia, and any jewelry purchased with illicit funds.

This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.