Politics & Government
Joliet Housing Authority CFO Arrested for Embezzlement
Charlene Potts, arrested on a warrant issued by the Cook County State's Attorney's Office, is alleged to have embezzled from the Chicago Housing Authority.
The chief financial officer of the Housing Authority of Joliet was arrested Tuesday on charges that she embezzled nearly $200,000 from the Chicago Housing Authority.
Charlene Potts and her estranged husband, Scott Washington, were taken into custody on warrants issued by the Cook County State's Attorney's Office alleging fund embezzlement that occurred when Potts did CHA work between 2005 and 2008, according to the charges.
Joliet Mayor Tom Giarrante said he learned of the situation Tuesday morning, when Joliet housing authority Interim Director Michael Simelton called to let him know that officials were at the agency's 41 N. Bluff St. office to make the arrest.
Potts, 42, of Richton Park, worked for a private contractor when doing CHA work when she is alleged to have written fraudulent checks to her husband from the CHA accounts from which she paid vendors, landlords and tenants. She issued 26 checks to Washington, 48, of Park Forest, for fictitious reasons, and he would in turn immediately cash the checks at a currency exchange or through his bank, the charges said.
Potts was charged with organizing a financial crimes enterprise, a Class X felony; Washington with continuing a financial crimes enterprise, a Class 1 felony.
Giarrante said Simelton is in the process of double-checking all HAJ accounts but told the mayor he is "very confident" no discrepancies will be found.
"This is not a black mark for the (Joliet) housing authority," Giarrante said. "What she did (that led to the criminal charges) was when she worked for the Chicago Housing Authority."
In fact, Simelton has credited Potts several times for helping the housing authority resolve many of the agency's problems with the U.S. Department of Housing and Urban Development, the mayor said. Potts was hired by the HAJ in 2011.
In the wake of Pott's arrest, Joliet City Councilman Jim McFarland issued a public statement urging the immediate independent audit of HAJ records and the removal of all current HAJ board members.
McFarland is a member of the newly created Housing Authority Oversight Committee, which met for the first time Monday. The committee is charged with helping the agency deal with its financial and organizational problems, including a $900,000 deficit, cited by HUD.
“I really think this action should have been taken a long time ago and is completely necessary if the Housing Authority of Joliet is going to reform,” McFarland said in his statement.
“I am not convinced this institution can turn the corner on its own. I think it is time for the city council to become more directly involved.”
Giarrante said neither action is necessary. An independent audit is done annually and the board members had nothing to do with the hiring of Potts or her alleged criminal activities at a different housing authority.
"Are you going to blame this board for something she did when she was working for another (agency)," Giarrante said. "I think (McFarland) is really out of line asking for that."
Potts and Washington made their first Cook County court appearances Wednesday, where Potts' bond was kept at $50,000 and Washington's reduced from $50,000 to $25,000. Their next court hearing is Aug. 27.
Joliet Mayor Tom Giarrante said he learned of the situation Tuesday morning, when Joliet housing authority Interim Director Michael Simelton called to let him know that officials were at the agency's 41 N. Bluff St. office to make the arrest.
Potts, 42, of Richton Park, worked for a private contractor when doing CHA work when she is alleged to have written fraudulent checks to her husband from the CHA accounts from which she paid vendors, landlords and tenants. She issued 26 checks to Washington, 48, of Park Forest, for fictitious reasons, and he would in turn immediately cash the checks at a currency exchange or through his bank, the charges said.
Potts was charged with organizing a financial crimes enterprise, a Class X felony; Washington with continuing a financial crimes enterprise, a Class 1 felony.
Giarrante said Simelton is in the process of double-checking all HAJ accounts but told the mayor he is "very confident" no discrepancies will be found.
"This is not a black mark for the (Joliet) housing authority," Giarrante said. "What she did (that led to the criminal charges) was when she worked for the Chicago Housing Authority."
In fact, Simelton has credited Potts several times for helping the housing authority resolve many of the agency's problems with the U.S. Department of Housing and Urban Development, the mayor said. Potts was hired by the HAJ in 2011.
In the wake of Pott's arrest, Joliet City Councilman Jim McFarland issued a public statement urging the immediate independent audit of HAJ records and the removal of all current HAJ board members.
McFarland is a member of the newly created Housing Authority Oversight Committee, which met for the first time Monday. The committee is charged with helping the agency deal with its financial and organizational problems, including a $900,000 deficit, cited by HUD.
“I really think this action should have been taken a long time ago and is completely necessary if the Housing Authority of Joliet is going to reform,” McFarland said in his statement.
“I am not convinced this institution can turn the corner on its own. I think it is time for the city council to become more directly involved.”
Giarrante said neither action is necessary. An independent audit is done annually and the board members had nothing to do with the hiring of Potts or her alleged criminal activities at a different housing authority.
"Are you going to blame this board for something she did when she was working for another (agency)," Giarrante said. "I think (McFarland) is really out of line asking for that."
Potts and Washington made their first Cook County court appearances Wednesday, where Potts' bond was kept at $50,000 and Washington's reduced from $50,000 to $25,000. Their next court hearing is Aug. 27.
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