Nearly one year after federal investigators charged a housing director in Chatham County for fraudulent business, her sentence has been announced.

A U.S. District Court judge declared 65-year-old Joanna Johnson Davis will serve a 30-month imprisonment sentence and will have to pay restitution of more than $194,000. The Justice Department said upon its arrest of Davis in February 2023 that she took more than $200,000 through an illegal bid-rigging scheme for more than eight years while serving as the executive director of the Chatham County Housing Authority.

Davis, who is a Durham resident, pled guilty in May 2023 to one charge of conspiring to commit wire fraud that victimized the quasi-governmental agency — taking the plea deal to cut down the 19 counts listed in her initial indictment. According to investigators, she used friends and family to create bogus jobs and fake contracts, which then allowed Davis to take kickbacks using the federal Department of Housing and Urban Development’s funding.

“Access to decent, safe, and sanitary housing is a basic human need,” said U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina, where the case was tried. “Misappropriating funds intended to help people afford decent housing is unconscionable, and we are grateful to the agencies that investigated this conduct and helped hold this defendant accountable.”

“JoAnn Davis was entrusted to spend money intended to help improve the lives of others,” said Robert M. DeWitt, the FBI Special Agent in Charge of Davis’ case. “She abused that trust by misusing the government funding to enrich her own life and the lives of her family and friends. The FBI is committed to hold accountable anyone who commits this type of fraud.”

Evidence presented at sentencing revealed Davis awarded Chatham County Housing Authority contracts to at least 13 friends and relatives from 2016 to 2020 with not competitive bidding process. According to the Justice Department, Davis created bogus proposal to “compete” with her connections’ own fake proposal to demonstrate “reasonable” costs for the jobs — with the executive director using stolen identities and company letterheads to create the fake competitors’ bids. Additionally, little to no work would be completed from the contract, but investigators said the CCHA would still pay Davis’ friend or family member.

The Chatham County Housing Authority was founded in 1970 and is supported by the county government, but is a separate entity that does not use local tax revenue for its operations. Instead, the public housing authority operates under the umbrella of the Department of Housing and Urban Development, overseeing the county’s Housing Choice Vouchers. The organization’s Board of Directors initially said Davis would remain in her position as the investigation continued during the spring of 2023, but ultimately removed her from the role. An employee for the Chatham County Housing Authority confirmed to Chapelboro that the organization hired Norris Staton as its latest executive director in October.

The federal judge ruled Davis will be subject to supervised release for 2 years following her release from prison. The full release from the U.S. Department of Justice can be found here.

 

Featured photo via the Chatham County government.

Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.

Related Stories
‹
U.S. DOJ Writes Support for Summit Church in Lawsuit Against Chatham County for New Site
The U.S. Department of Justice voiced its support of Summit Church's lawsuit against Chatham County, citing federal religious protections.
Chapel Hill Businessman and Son Plead Guilty in 2022 Stock Fraud Case
More than two years after being arrested, a Chapel Hill businessman and his son plead guilty to a market manipulation scheme.
Body of Missing Fisherman Recovered on Friday, Says Chatham County Sheriff's Office
After searching Thursday evening and early Friday morning, the Chatham County Sheriff's Office said first responders recovered the body of a drowned fisherman just south of Jordan Lake.
Chatham County Roundup: Chair of the County Commissioners Karen Howard
Chair of the Chatham County Commissioners Karen Howard spoke with 97.9 The Hill's Andrew Stuckey on Tuesday, June 18. She discussed the passage of the budget for Chatham County, including what she is most proud of in the budget. She discussed the latest on Wolfspeed as that company cuts positions as part of a Chapter 11 restructuring. She also talked about new "Welcome to Chatham County" signs that will be put on 15-501, and more.
On the Porch: Steve Rao - Asian-American Leader
This Week: Steve Sandeep Rao, a native of Charleston WV, Steve serves as an At Large Council Member for the Town of Morrisville and served as Mayor Pro Tem from 2015-2017. He served as a Senior Business Development Executive at Alphanumeric Systems, a global tech company headquartered in Raleigh from January 2011 to May 2020 and now serves as Of Counsel and Adviser to State Federal Strategies, where he advises Technology Companies on State and Local Government Business Development Strategy. Council Member Rao is the longest serving Asian-American elected official in NC
Chatham County Roundup: Former Pittsboro Mayor and 'On The Porch' Host Randy Voller
Randy Voller — a realtor and former mayor of Pittsboro — joins 97.9 The Hill's Brighton McConnell on Wednesday, June 11 for the "Chatham County Roundup."
Pittsboro Adopts Interlocal Agreement with Chatham County to Help Transform Downtown Area
Pittsboro recently adopted an interlocal agreement with Chatham County, which could help transform its downtown area.
On the Porch: Cal Cunningham - Lifetime Tar Heel
This Week: Cal Cunningham is founder of Cunningham Law, PLLC, where he represents clients in real estate development and complex civil litigation. He is also manager of Axiom Property Development, LLC, to deliver workforce-affordable housing in the Triangle. Through Cunningham Capital, LLC, Cal engages in venture capital investment, is a board member of Archaius, Inc. (drone technology) and a member of the Charlotte Angel Fund. Cal also currently serves as a Lieutenant Colonel in the US Army Reserve, most recently as deputy commander of a legal detachment. He is also a veteran of tours in Iraq and Afghanistan. In 2020, Cunningham was the Democratic Nominee for United States Senate in North Carolina.
On Air Today: Chatham Pride Co-Founders Rob Schooley and Mindy Jacobs
Co-Founders and Executive Directors of Chatham Pride, Rob Schooley and Mindy Jacobs spoke with 97.9 The Hill's Andrew Stuckey on Thursday, June 5. They discussed the formation of Chatham Pride as an organization, and how that led to them joining forces with the PBO Pride event at The Plant. They discussed each of their journeys to leadership positions in the Chatham County Pride Alliance. They discussed this year's PBO Pride schedule, which includes a drag show Friday night, and a parade, festival, and vendors on Saturday. They also discussed other initiatives by the organization and more.
CORA Set To Take Over Siler City Food Pantry Despite Federal Funding Cuts
As Chatham County continues to grow, CORA is looking to increase its food services. But threats to federal funding may hinder those goals.
›