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State Auditor ‘disappointed’ in progress made after Pierce County Housing Authority embezzlement

An accountability audit looked at the two-year period following the embezzlement of public funds and revealed there are more financial safeguards to be put in place.

PIERCE COUNTY, Wash. — The Washington state auditor said she is “disappointed” more progress hasn’t been made in creating financial safeguards at the Pierce County Housing Authority since its $7 million embezzlement scandal two years ago, according to an accountability audit released Thursday.

Cova Campbell, Pierce County Housing Authority's former finance director, was sentenced to four years in prison in 2021 after it was discovered she embezzled millions in public funds.

According to the Washington state auditor’s office, the accountability audit looked at the two-year period after discovering the embezzlement. The audit found that the Housing Authority has taken appropriate steps and made progress, but that financial security weaknesses persist.

The audit said the Housing Authority still hasn’t implemented a new accounting system and that finance staff still had full access, although they have begun the process. It also said the Housing Authority has not yet finished designing an improved reporting process to the Board of Commissioners regarding financial issues. It also revealed that the organization has not "reconciled bank statements" from July through November of this year.

“Although I am disappointed that more progress has not been made at the Housing Authority, they are moving in the right direction,” said State Auditor Pat McCarthy. “We understand that making big changes takes time. And we can see that such changes are still needed.”

Since 2019, the Housing Authority has hired a new executive director, contracted assistance to assess financial activity control, began implementing a new financial system and created a finance committee to review financial reports.

“Since we discovered the major fraud, the Housing Authority’s leadership has shown a commitment to understanding the issues that made it possible. I encourage them to act with urgency in correcting those issues," McCarthy said.

According to court documents, Campbell initiated wire transfers of up to $500,000 from the organization to her own bank accounts and submitted fake invoices.

Campbell used the money to purchase a home in Oklahoma, investments in properties, private jet charters and online gambling and gaming.

The state auditor's office first discovered financial irregularities in 2019 and uncovered Campbell's scheme.

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