Final HASB case closed with Smith sentenced to over 13 years in prison

SOUTH BEND, Ind. -- The sixth and final defendant in the Housing Authority of South Bend scandal, 47-year-old Albert Smith, was sentenced this week to 135 months in prison followed by two years of probation after he was found guilty of Conspiracy to Commit Bank Fraud, Federal Program Theft, and Wire Fraud.

The HASB was set up to provide housing opportunities and services to the South Bend community, managing more than 800 public housing residential units.

Court documents show that from approximately 2015 through 2019, Smith served as the Asset Manager Director of the HASB and reported directly to the Executive Director.

Authorities say the fraud scheme involved the issuance of HASB payment checks to four outside contractors for contracting work that had not actually occurred.

"These contractors would then deposit the HASB payment checks, withdraw a portion of each check in cash, and hand-deliver the cash back to co-conspirators at the HASB’s main office," authorities said.

The case proved that Smith had a hand in creating hundreds of fraudulent documents to conceal the theft. 

“Mr. Smith’s sentencing concludes the sentencing of those who schemed with Tonya Robinson, the former Executive Director of the South Bend Housing Authority, to steal federal housing funds to enrich themselves," said U.S Attorney Clifford Johnson. "Illegal schemes that purloin public money, defrauding taxpayers and jeopardizing tenants’ health and safety, will not be tolerated.”

Smith was also ordered to pay $3,030,940 in restitution to the victims of the offense.

“Federal funding for public housing should be used to help ensure all Americans have access to safe, affordable housing - not to enrich those who deprive these programs of their much-needed funding through fraud and theft,” said FBI Indianapolis Special Agent in Charge Herbert Stapleton. “Today’s sentence shows that those who violate the public trust will be held accountable.”

Smith’s co-defendants who were previously convicted received the following sentences:

• Tonya Robinson was sentenced to a total term of 108 months in prison, 2 years of supervised release, and was ordered to pay $3,236,949.97 in restitution to victims of the offense.
• Tyreisha Robinson was sentenced to time served, 2 years of supervised release, and was ordered to pay $363,122.00 in restitution to victims of the offense.
• Douglas Donley was sentenced to a total term of 27 months in prison, 2 years of supervised release, and was ordered to pay $303,920.00 in restitution to victims of the offense.
• Archie Robinson III was sentenced to a total term of 6 months of imprisonment, 2 years of supervised release, and was ordered to pay $1,152,636.00 in restitution to victims of the offense.
• Ronald Taylor, Jr. was sentenced to a total term of 44 months in prison, 2 years of supervised release, and was ordered to pay $1,714,956.87 in restitution to victims of the offense.

“Albert Smith and his previously sentenced co-conspirators abused their positions of trust overseeing HUD money that was intended to provide housing assistance to some of the most vulnerable people in their community. Smith engaged in an egregious false billing and kickback scheme, lining his own pockets with scarce taxpayer dollars,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development, Office of Inspector General.

“The sentence handed down today serves as a warning to those willing to commit fraud involving HUD-funded programs that HUD OIG remains steadfast in its commitment to working with our Department of Justice, prosecutorial, law enforcement and oversight partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”