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Former Killeen Housing Authority Executive gets 37 months for embezzling federal funds

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KILLEEN, Texas (KXXV) — A former executive director of the Killeen Housing Authority was sentenced on Monday to more than three years in federal prison for embezzling hundreds of thousands of dollars in federal funds for personal use.

Deadra Johnson received a 37-month prison sentence from U.S. District Judge David Counts in Waco. The judge also ordered Johnson to pay $297,473.30 in restitution.

Johnson pleaded guilty in February to theft of government property after being arrested in January 2024.

According to court documents, Johnson fraudulently obtained funds from the Killeen Housing Authority and used the money to pay personal expenses including rent, utilities, auto maintenance, internet service, airline tickets and furniture. She also used a portion of the funds to purchase a vehicle.

To hide what she did, Johnson developed multiple kickback schemes, prosecutors said.

"In stealing hundreds of thousands of dollars while overseeing the Killeen Housing Authority, Deadra Johnson selfishly betrayed not just the federal government and American taxpayers, but also the hundreds of families who depended on KHA services," U.S. Attorney Justin R. Simmons for the Western District of Texas said in a statement.

Special Agent in Charge Robert Lawler with the U.S. Department of Housing and Urban Development Office of Inspector General said Johnson "exploited her position and violated the public trust by stealing federal funds that were intended to help provide housing for the most vulnerable people in our community."

"She orchestrated a plot to use that money to pay for a life of luxury for herself and her family members, which included purchasing multiple vehicles, first-class plane tickets, and paying for other personal expenses," Lawler said.

Acting Special Agent in Charge Alex Doran for FBI San Antonio said Johnson's actions "diverted critical government funds away from individuals who depend on them during their most challenging moments."

The case was investigated by HUD's Office of Inspector General and the FBI with assistance from the Texas Department of Public Safety. Assistant U.S. Attorney Greg Gloff prosecuted the case.

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