A former finance director stands accused of misappropriated more than $6.94 million in public funds from the Pierce County Housing Authority, according to a fraud investigation report the State Auditor’s Office released Monday. It’s the biggest case of fraud for a local government in the state of Washington, according to Auditor’s Office records.
The PCHA provides affordable housing for thousands of low-income residents in Pierce County, Washington. According to the News Tribune, it had an operating budget just under $34 million last year.
The alleged fraud was uncovered earlier this year by a routine audit by the state’s Auditor’s Office. The Housing Authority filed a lawsuit in August, alleging finance director, Cova Campbell, and her husband, Mark Campbell, appeared to have stolen millions. The auditor’s investigation found that Campbell made purchases with the Housing Authority’s credit cards in 2016 and started transferring funds into her bank account by making the transactions look like payments to vendors. The audit report details misappropriated funds of nearly $7 million between March 2016 and July 2019.
Failure of Controls
“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, during a press conference. “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,” she said.
The case has been referred to the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development Office of Inspector General, which will both receive the auditor’s report, for continued investigation and potential prosecution.
“The Housing Authority did not have adequate internal controls to safeguard public resources,” the report said. The Auditor’s Office recommended increased oversight of financial transactions, limited wire transfer capabilities, training for employees about how to review financial information, and closing unnecessary bank accounts, among other changes. 
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