Bradenton Housing Authority executive director wants former acting director investigated for fraud

BRADENTON -- Bradenton Housing Authority Executive Director Ellis Mitchell Jr. wants Darcy Branch, former acting executive director and finance director, investigated for fraud after discovering a contract Branch signed as acting director several months after Mitchell took the helm of the public housing agency.

Two weeks ago, Mitchell attended a BDO USA training session and was asked by the accountant firm when it would be invited to do BHA's year-end financials.

Mitchell told BDO the BHA board has another firm under contract, but was told the BHA has a contract with BDO, an agreement Mitchell did not know

about. BDO presented the five-year, $10,000 contract to Mitchell.

"She signed a five-year contract with BDO in May of 2015 to do our year-end close out," said Mitchell. "She signed it as interim director. Darcy was not the interim ED in May 2015 nor would she have been authorized to sign any such agreement without board approval."

Signing as interim director without board approval amounts to fraud, Mitchell said.

"She had no business signing it," he said. "It's fraud. There wasn't even a copy of the contract on file."

BHA Commissioner Bonnie Belford wants to involve the agency attorney and "sue the person responsible for signing the contract," but Mitchell said a legal battle would cost more money than the contract.

He recommended BDO be allowed in May to close out the agency's fiscal year-end financials, and vowed: "The next four years will have to be ours."

Mitchell said he would turn the matter over to the U.S. Department of Housing and Urban Development Office of Inspector General for investigation.

"HUD-OIG has the resources and attorneys to do the investigation, and it's better to turn it over to them and let them resolve this," said Mitchell. "It's not worth it for us."

Branch said she doesn't recall whether the contract was brought to the board and said she would have never signed a contract as interim director. She declined further comment.

"I'm representing Darcy Branch in this matter," said her attorney, Mark Lipinski. "At this time, we have no comment."

Mark Young, Herald urban affairs reporter, can be reached at 941-745-7041 or follow him on Twitter @urbanmark2014.

This story was originally published April 22, 2016 at 11:49 PM with the headline "Bradenton Housing Authority executive director wants former acting director investigated for fraud ."