Former Executive Director of East Carroll Parish Housing Authority Indicted for Federal Program Theft and Money Laundering

LAFAYETTE – A federal grand jury in Lafayette has returned a four-count indictment charging Kelsi J. McDaniel, 29, of Lake Providence, Louisiana, with federal program theft and multiple counts of concealment money laundering in connection with the alleged misuse of federally funded housing resources.

According to the indictment, McDaniel is charged with one count of embezzlement involving federal program funds from the East Carroll Parish Housing Authority (ECPHA) and three counts of concealment money laundering tied to the movement and attempted masking of those funds. If convicted, she faces a maximum penalty of up to 10 years in federal prison for the theft charge and up to 20 years in federal prison for each money laundering count, along with potential supervised release of up to three years per count.

Court documents state that McDaniel served as the Executive Director of ECPHA, a Louisiana state agency that administers housing assistance programs funded through the U.S. Department of Housing and Urban Development (HUD). In that role, she was designated as an authorized signatory on the agency’s primary financial account, which received federal funds intended to support housing assistance for eligible individuals and families.

Investigators allege that McDaniel exploited that position of authority by transferring funds from the ECPHA account into her personal bank account. The indictment further outlines a series of transactions in which funds were routed through third-party Cash App accounts before being returned to her, a process designed to obscure the origin and ownership of the money. These financial movements are central to the concealment money laundering charges.

Federal authorities emphasized that the alleged conduct directly impacted a program designed to assist vulnerable populations, elevating the severity of the case beyond financial loss to include disruption of public service delivery.

The investigation was conducted by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) and the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant U.S. Attorney Cheyenne Wilson, with assistance from Legal Assistant Amanda Morgan.

U.S. Attorney Zachary A. Keller for the Western District of Louisiana announced the indictment. Officials noted that enforcement actions of this nature align with broader federal efforts to identify and prosecute misuse of taxpayer-funded programs, including coordinated initiatives targeting fraud within federal benefit systems.

Statements from federal officials highlighted the breach of public trust associated with the alleged actions. Authorities underscored that housing agencies such as ECPHA serve critical roles in supporting vulnerable communities, and misuse of those funds undermines both operational capacity and public confidence.

An indictment is an allegation. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Further proceedings will be scheduled in federal court. Additional information will be released in accordance with judicial process.

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