Navajo Nation Housing (Chilchinbeto AZ / Springstead NM / Shiprock NM)
Outcome
William Aubrey, 71, of Mesquite, Nevada, a builder who received over $38 million in federal contracts to develop affordable housing for the Navajo Nation, was convicted by a jury and sentenced to 51 months in federal prison for embezzling approximately $2.2 million in tribal housing grant funds for personal use — including gambling, fur and jewelry purchases, and thoroughbred racehorse expenses.
Details
Navajo Nation Housing (Arizona/New Mexico) — Builder Embezzlement (2002–2008)
Outcome: William Aubrey, 71, of Mesquite, Nevada, a builder awarded over $38 million in federal contracts to develop affordable housing for the Navajo Nation across three sites in Arizona and New Mexico, was convicted by a jury and sentenced to 51 months in federal prison for embezzling approximately $2.2 million in tribal housing grant funds for personal use.
Beginning in 2002 and 2003, Aubrey's company Lodgebuilder signed contracts totaling over $38 million with the Navajo Nation for the development of housing projects in Chilchinbeto, Arizona; Springstead, New Mexico; and Shiprock, New Mexico. The contracts were funded by federal HUD tribal housing grants intended to provide affordable homes for Navajo Nation members.
Over the course of these contracts, Aubrey diverted approximately $2.2 million of the housing grant funds for his personal benefit. He used the stolen funds for gambling, the purchase of furs and jewelry, and expenses related to thoroughbred racehorse training.
A jury convicted Aubrey on two counts of taking and converting money belonging to a tribal organization. The U.S. District Court sentenced him to 51 months in federal prison and three years of supervised release, with a prison reporting date of January 3, 2014. The case was investigated by HUD's Office of Inspector General.
Primary Source: Builder Sentenced To Prison For Embezzling From Federal Housing Program
How Crucible Prevents This
Aubrey received $38 million in tribal housing contracts spanning multiple New Mexico and Arizona Navajo Nation communities, with minimal project completion accountability. Crucible's construction milestone payment hook releases federal housing construction funds only upon documented proof of completed construction phases, preventing payments far ahead of work performed. A contractor beneficial ownership verification control would have identified Aubrey's personal financial interests in the projects and required independent audits of all progress payments. The gambling and luxury purchase pattern on organizational accounts would have triggered Crucible's anomalous expense alert within the first month.
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