Former Dunn Housing Authority Director Sentenced To Prison For Stealing Taxpayer Funds

NEW BERN, N.C. – A federal judge sentenced Debbie Norris Woodell, 64, to two years in federal prison, followed by three years of supervised release, for conspiring to commit federal program theft. Woodell was also ordered to repay $238,448 to the U.S. Department of Housing and Urban Development (HUD).

Woodell became the Executive Director of the Dunn Housing Authority (DHA) in 2014. DHA is a federally funded agency that provides affordable housing to qualifying low‑income families, seniors, and individuals with disabilities in Dunn, North Carolina.

Between 2016 and 2021, Woodell exploited her position, working with others to steal more than $200,000 from DHA. As part of the scheme, she issued checks from DHA accounts to co‑conspirators for unapproved landscaping and maintenance work that they never ever started. She funneled most of the money back to her personal use.

To carry out the fraud, she fabricated bid documents, created fake invoices, forged signatures, and provided false information to DHA’s board of commissioners. Woodell also misused DHA credit cards to make thousands of dollars in unauthorized personal purchases, including ATV gear and home renovations for her house. She concealed the theft by creating false receipts and altering DHA’s accounting records.

“Debbie Woodell violated the trust placed in her, orchestrating multiple fraud schemes and compromising the federal procurement process by stealing more than $200,000 intended to support vulnerable members of the community,” said Special Agent in Charge Jerome Winkle of HUD’s Office of Inspector General. “Her actions were especially damaging given the limited resources available. HUD OIG will continue working with law enforcement partners to thoroughly investigate and hold accountable those who misuse public funds for personal gain.”

“In limited circumstances, HUD pays for citizen’s housing with taxpayers’ dollars,” said U.S. Attorney Ellis Boyle. “Woodell stole those dollars robbing both taxpayers and indigent recipients of America’s generosity. We will continue to hold greedy fraudsters accountable and ensure that criminals who exploit public programs face serious consequences. Cheaters. Never. Win.”

Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. HUD’s Office of Inspector General investigated the case.