Alesia Watson, HUD Fund Embezzlement, NJ 2024

CAMDEN, N.J. – Alesia Watson, 54, the former head of the Ocean City Housing Authority (OCHA), confessed today to pilfering federal funds intended for those who need it most. The executive director used her position to line her pockets, and those of her friends and family, with money earmarked for affordable housing.

Watson pleaded guilty before U.S. Magistrate Judge Karen M. Williams in Camden federal court to one count of embezzling federal funds received from the U.S. Department of Housing and Urban Development (HUD). Acting U.S. Attorney William E. Fitzpatrick announced the guilty plea, a small victory in a system riddled with opportunities for abuse.

Court documents and statements reveal a calculated scheme. From December 2013 through March 2015, Watson exploited her access to two OCHA credit cards. She purchased a total of 69 MasterCard gift cards – a clear indication this wasn’t a one-time lapse in judgment. These cards weren’t used for official housing authority business; instead, they funded personal expenses and were gifted to associates.

The scheme was simple, yet brazen. Watson then used federal HUD funds, funneled through OCHA, to pay off the credit card bills racked up from the gift card purchases. The total loss from this embezzlement rings in at more than $6,500, but less than $15,000 – a significant sum stolen from a program designed to help vulnerable citizens.

Watson now faces a maximum penalty of one year in prison and a $100,000 fine, or twice the amount she illegally obtained. Sentencing is scheduled for August 15, 2017. Whether that’s enough to deter others from similar acts of greed remains to be seen.

The investigation, led by special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, and the U.S. Secret Service, Newark Field Office, exposed Watson’s betrayal. Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden will prosecute the case. This case serves as a stark reminder that those entrusted with public funds will be held accountable – eventually.