The East Baton Rouge Parish Housing Authority has placed its top two executives on paid leave while an outside accounting firm digs into allegations that someone misappropriated agency funds, possibly through an agency-issued credit card. CEO J. Wesley Daniels and Chief Operating Officer April Downs were suspended following an Oct. 30 special meeting, and the agency has installed an 18-year staffer as acting chief while the investigation plays out.
Audit Launched, Executives Sidelined
The housing authority board hired Luther Speight & Company of New Orleans to conduct the audit after the alleged misappropriation surfaced, according to The Advocate. Daniels and Downs were both suspended with pay pending the findings, the paper reports. In their place, the board named Doris Mejia as acting CEO; Mejia has served the agency for 18 years and previously worked as its chief housing officer, per the same account.
The developments were announced in a news release issued Thursday, the station's report notes. That release did not specify the amount of money in question, nor did it detail the nature of the alleged misappropriation or identify the person accused. Attempts by the paper to reach Daniels for comment were unsuccessful.
A Board Member's Dual Role
The person accused of misappropriation is a board member of Partners Southeast, a housing nonprofit affiliated with the housing authority that operates out of the same location on North Boulevard, according to the report. Board chair Dianna Payton said the board reacted as soon as it learned of the alleged misappropriation and that its legal and financial advisers reported the matter to the proper agencies. Payton also said those advisers acted swiftly and decisively, per the same account.
Justin Gaudet, who sits on both the Partners Southeast board and the housing authority board, stepped down from the Partners Southeast board but continues to hold his seat on the housing authority board, the outlet notes. The Oct. 30 special meeting was held jointly by the housing authority and Partners Southeast boards, and that joint board voted to temporarily suspend credit cards previously issued to members of both boards.
Independent Agency, Council-Appointed Board
The East Baton Rouge Parish Housing Authority describes itself as an independent organization governed by a Board of Commissioners that sets its policy and direction, according to the East Baton Rouge Parish Housing Authority. The Metro Council of the City of Baton Rouge appoints the board's seven members, each serving a five-year term with the possibility of reappointment, the agency states on its website. Its stated mission is to provide and develop affordable housing for individuals and families while promoting self-sufficiency and neighborhood revitalization.
This isn't the first time the agency's finances have drawn scrutiny. A 2023 audit detailed theft by a former employee along with numerous instances of noncompliance with federal law within the housing authority, according to an earlier report from The Advocate. The current audit's scope, timeline, and ultimate findings remain unresolved, and the housing authority has not released further details beyond Thursday's statement.
