Former NY housing authority head pleads guilty to federal funds theft

The exec was aided in the theft by her son and daughter-in-law, who pleaded guilty to a related charge

Former NY housing authority head pleads guilty to federal funds theft
The former executive director of the Niagara Falls Housing Authority (NFHA) in New York has pleaded guilty to a charge of theft concerning programs receiving federal funds, US Attorney James Kennedy Jr. announced.

Stephanie Cowart, who headed the NFHA between 1997 and July 2016, was alleged to have stolen $6,000 between October 2013 and January 2015. The NFHA was an organization that received federal funding. Her son Allen Cowart and daughter-in-law Fredia Cowart were claimed to have aided in the theft. The two pleaded guilty to a misdemeanor charge of theft of government funds.

On behalf of an organization called People and Possibilities, Allen and Fredia sought and obtained a $6,000 grant from the Niagara Area Foundation with the assistance of Stephanie. The grant was meant for a project that would "teach children and youth the importance of proper etiquette, what bullying is and what they can do about it and to teach educational empowerment tools."

The proceeds of the grant were deposited directly into the operating account of the NFHA, which then paid Allen and Fredia for work purportedly done on the project. However, Allen and Fredia never actually conducted presentations related to the project.

"As the leader of the Niagara Falls Housing Authority, Stephanie Cowart was obligated to act as a responsible steward of these funds and to use them to better the lives of residents and the community as a whole," Kennedy said. "Instead, the defendant misused her position to ensure that the only improvements realized through her administration of these funds were to the bank balances of her family members."

The charge against Stephanie Cowart carries a maximum penalty of 10 years in prison and a $250,000 fine. The charge against her son and daughter-in-law carries a maximum penalty of one year in prison and a $100,000 fine.


Related stories:
HUD sues former housing authority execs over misuse of funds
Former housing authority officer accused of stealing thousands from federal program