Georgia

Ex-Georgia housing authority director indicted in alleged $2.5 million fraud scheme

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HINESVILE, Ga. — A former Georgia housing authority executive director and a Savannah man have been indicted on federal fraud charges stemming from what prosecutors say is a yearslong scheme that allegedly cost a public housing agency more than $2.5 million.

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According to the U.S. Attorney’s Office for the Southern District of Georgia, Melanie S. Thompson, 55, of Savannah, is charged with conspiracy to commit wire fraud, 19 counts of wire fraud, and two counts of making false, fictitious, or fraudulent claims. Toriono L. Byrd, 52, of Savannah, is charged with conspiracy to commit wire fraud.

Federal prosecutors say the scheme began as early as September 2019 and continued through October 2023 while Thompson served as executive director of the Hinesville Housing Authority.

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According to the indictment, Thompson allegedly created or approved false invoices directing payments to Byrd’s private business for work that was either never completed or billed at amounts far above its actual value. Prosecutors say Byrd then allegedly funneled some of that money back to Thompson through kickback payments for her personal benefit.

The indictment also alleges Thompson used her position to authorize fraudulent payments to herself through the housing authority’s payroll system and awarded herself bonuses she was not entitled to receive.

In addition, prosecutors accuse Thompson of submitting false applications for COVID-era federal loans.

Federal authorities allege the scheme resulted in losses exceeding $2.5 million to the housing authority.

If convicted, the pair could face up to 20 years in prison, along with fines and supervised release following any prison sentence.

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