Sean Tracy Dillard, Theft of Government Funds, North Carolina 2026

Raleigh, N.C. – In a shocking turn of events, a North Carolina correctional officer has pleaded guilty to theft of government funds in a COVID-19 fraud scheme.

Sean Tracy Dillard, 55, pled guilty today pursuant to a criminal information to theft of government funds for fraudulently submitting North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) loan applications for emergency rental assistance.

As part of his fraud scheme, the defendant, a correctional officer with the North Carolina Department of Corrections (NCDOC), submitted fictitious tenant lease agreements for multiple properties in Hertford County as part of his NC HOPE loan applications.

He faces up to 10 years in prison.

According to officials, the COVID-19 pandemic led to a massive influx of federal funding aimed at alleviating the economic effects of the crisis. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $5 billion in Community Development Block Grant (“CDBG”) programs as flexible federal funding to states and localities.

The North Carolina Office of Recovery and Resiliency, a division of the North Carolina Department of Public Safety, utilized federal funds made available in the CARES Act to assist North Carolina renters stay in their homes during COVID-19 by preventing evictions and the loss of utility services.

The NC HOPE program, utilized an initial $51.5 million allocation of CDBG funds from the CARES Act to provide housing and utility assistance. The State of North Carolina also received CRF funds from the CARES Act, of which $66 million was allocated to pay administrative costs associated with the NC HOPE program.

Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert B. Jones, Jr. accepted the plea. Sentencing will occur before United States District Judge Louise W. Flanagan later this year.

The FBI is leading the investigation, and Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.

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