Former Atlanta Housing Authority Executive Sentenced in Section 8 Fraud Scheme
ATLANTA, Georgia – A former executive with the Atlanta Housing Authority has been sentenced to prison after federal prosecutors said she used her position to fraudulently obtain Section 8 housing funds, pandemic relief money, and mortgage loans.
According to Theodore S. Hertzberg, 61-year-old Tracy Denise Jones of Atlanta was sentenced May 20 to nine months in federal prison followed by nine months of home detention and 15 months of supervised release.
Jones was also ordered to pay $65,598.80 in restitution and a $63,546 fine.
She previously pleaded guilty Feb. 2, 2026, to conspiracy to commit theft of government funds, wire fraud, and credit application fraud.
Federal prosecutors said Jones served as Senior Vice President over the Housing Choice Voucher Program at the Atlanta Housing Authority beginning in 2017, overseeing one of the nation’s largest Section 8 housing programs funded by the United States Department of Housing and Urban Development.
Authorities said Section 8 employees are generally prohibited from receiving rental assistance payments for their own properties and landlords are typically barred from renting to family members receiving assistance.
Investigators alleged Jones used falsified documents, a fake name, and a shell company to place family members into the Section 8 program and collect housing payments tied to her own rental property.
According to prosecutors, Jones improperly received more than $36,000 in Section 8 funds and later attempted to obstruct investigations by filing a false affidavit and convincing others to provide misleading information on her behalf.
Federal authorities also said Jones fraudulently obtained more than $27,000 in Small Business Administration pandemic relief funding through shell businesses by falsely claiming the businesses were operating, employed multiple workers, and generated substantial revenue.
When one application was denied, prosecutors said Jones appealed and falsely wrote:
“I am truly a[n] honest business owner[.]”
“I hear the stories how people abused the PPP loans to establish a lavish lif[e] style. That is not me. My business is small and is growing, but I [am] one of the legitimate and honest business that can use all the help I can.”
“I also serve a community of low income families in my business, renting one of my three homes to a low income family as well as serve other owners of low income rental properties.”
Investigators further alleged Jones committed mortgage fraud by falsely claiming a Section 8 rental property was her primary residence while applying for a $219,780 refinance loan.
“Jones violated the trust of the community, the taxpayers, and the needy families she was supposed to assist, using her senior position at one of the largest housing authorities to steal limited public funds,” Hertzberg said. “Her theft of that money meant other members of the community went without much-needed relief. Our office will continue to vigorously act to hold people like Jones, who violate the public trust and pilfer from the treasury, accountable.”
“Tracy Jones abused a position of trust by diverting funds from multiple federal programs, undermining assistance intended for vulnerable communities and struggling businesses during the pandemic,” said Jerome Winkle. “HUD OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to aggressively pursue those who exploit HUD-funded programs for personal gain.”
The investigation was conducted by the United States Department of Housing and Urban Development Office of Inspector General.
Assistant U.S. Attorney Garrett L. Bradford prosecuted the case.
