Former Hinesville Housing Authority director arrested in Florida on federal fraud charges

by Augostina Mallous

HINESVILLE, Ga. (WTOC) - The former executive director of the Hinesville Housing Authority was arrested in Florida on federal wire fraud and conspiracy charges, accused of stealing more than $2.5 million in public funds alongside a contractor she was romantically involved with, according to a federal indictment.

Melanie S. Thompson, who served as executive director of the Hinesville Housing Authority (HHA), was arrested July 10 in Florida by the Department of Housing and Urban Development’s Office of Inspector General, with assistance from the U.S. Secret Service.

She has since been released on bond.

Toriono L. Byrd, a contractor who prosecutors say was in an undisclosed romantic relationship with Thompson, was also arrested and released on bond. He was arraigned July 10th.

The Alleged Scheme

According to the indictment, Thompson and Byrd ran a fraud scheme from September 2019 through October 2023.

Prosecutors allege Thompson used her position as executive director to award contracts to Byrd’s company, Southeastern Coastal Property Maintenance Services LLC, without following standard bidding processes.

Thompson allegedly created fraudulent invoices using her HHA-issued computer, submitting them for work that was never completed or for amounts far in excess of their actual value. She then authorized payments to Byrd’s accounts, prosecutors say. In return, Byrd allegedly made kickback payments back to Thompson.

Prosecutors say Thompson also directed unauthorized bonus and stipend payments to her own personal accounts, totaling tens of thousands of dollars. The indictment further alleges Thompson submitted fraudulent COVID-19 Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration using fictitious businesses.

The total alleged loss to the Hinesville Housing Authority exceeds $2.5 million.

The Charges

Thompson faces 22 federal counts — including conspiracy to commit wire fraud, wire fraud, and false, fictitious, or fraudulent claims. Wire fraud charges carry a maximum of 20 years in prison. However, because some of the alleged fraud involves a presidentially declared disaster — the COVID-19 pandemic — those charges carry a maximum of 30 years and fines of up to $1 million.

Byrd faces one count of conspiracy to commit wire fraud.

Federal criminal defense attorney Mickey McNamara, who is not involved in the case, says both defendants are entitled to the presumption of innocence.

“That’s just one-sided version of the events. And I would hope if they did do it and they’re guilty, they’ll be punished to the extent that the law allows.”

McNamara also noted that conspiracy charges carry significant weight even with a single count.

“You do not have to have knowledge of the conspiracy as a whole,” he said.

“You also don’t have to complete the act or the conspiracy to be faced with a conspiracy charge. So you can basically be charged for the attempt.”

Statements

HHA Chairman Joe Ford released the following statement on behalf of the authority:

“The Hinesville Housing Authority is aware of the recent federal indictment of its former executive director, Melanie S. Thompson, as well as another individual, alleging a criminal scheme to defraud the Authority. We regard such allegations with the utmost seriousness. The Authority has confidence in the judicial process and will continue to fully cooperate with law enforcement in this matter. However, given Ms. Thompson’s pending prosecution, it would not be appropriate to comment on her case at this time. The Authority remains dedicated to strengthening our community by providing safe, affordable housing for low-income individuals and families, the elderly, and persons with disabilities. We are committed to ensuring that every dollar entrusted to us supports this vital public mission and is managed with the transparency and integrity our residents deserve.”

Liberty County Commission Chairman Donald Lovette also released a statement:

“Anytime there is a high profile negative event in Liberty County we are deeply saddened. All governmental agencies and those receiving public funds must take note and immediately review their processes thereby preventing the reoccurrence of events of this kind. We must work diligently to have, maintain and restore the trust of the citizens we serve.”