Three former Housing Authority of South Bend officials were convicted by jury of conspiracy, bank fraud, wire fraud, and federal program theft; the former executive director was sentenced to 108 months, the asset manager to 135 months, and a contractor to 27 months, with combined restitution of $6.57 million.

Housing Authority of South Bend — Kickback and Bank Fraud Conspiracy (2015–2019)

Outcome: Three former Housing Authority of South Bend officials were convicted by jury of conspiracy, bank fraud, wire fraud, and federal program theft; the former executive director was sentenced to 108 months, the asset manager to 135 months, and a contractor to 27 months, with combined restitution of $6.57 million.

From approximately 2015 through 2019, Tonya Robinson, the Executive Director of the Housing Authority of South Bend, and Albert Smith, the Asset Manager Director, conspired with outside contractors to defraud the housing authority. The scheme involved issuing HASB payment checks to four outside contractors for work that had not been performed. These contractors deposited the checks, withdrew cash, and hand-delivered it back to Robinson and Smith at the housing authority's main office. The split was structured so contractors gave one-third to Robinson, one-third to Smith, and kept the remaining third.

All told, $5.8 million was paid to contractors during the scheme, though some went to legitimate work. Following an eight-day jury trial in November 2023, all three defendants were found guilty. Robinson was sentenced to 108 months in prison with $3,236,949.97 in restitution. Smith received 135 months with $3,030,940 in restitution. Donley, a contractor, received 27 months with $303,920 in restitution.

The case was investigated by HUD's Office of Inspector General, IRS Criminal Investigation, and the FBI.

Primary Source: DOJ: Former Executive Director of South Bend Housing Authority Sentenced to 108 Months in Prison