LAFAYETTE– On April 15, 2026, a federal grand jury in Lafayette returned a four-count indictment charging Kelsi J. McDaniel, a 29-year-old Lake Providence resident, with one count of embezzling from the East Carroll Parish Housing Authority (“ECPHA”) and three counts of concealment money laundering relating to that embezzlement. McDaniel faces a maximum penalty of 10 years in federal prison for the federal program theft charge, up to 20 years in federal prison for the money laundering charges, and three years of supervised release for each count.On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.“Agencies like ECPHA serve some of the most vulnerable members of our Louisiana communities, and frauds like the one allegedly perpetrated by Ms. McDaniel strike at the heart of those agencies’ ability to do their work,” said United States Attorney Zachary A. Keller. “Our Office and federal partners look forward to seeing justice done in this case.”“Kelsi McDaniel’s alleged actions exploited her position and violated the public trust by stealing federal funds that were intended to help provide housing for the most vulnerable people in our community,” said Special Agent in Charge Jerome Winkle with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “HUD OIG will continue to work with its law enforcement partners to diligently pursue and hold accountable individuals who take advantage of their positions of trust to defraud HUD programs.”According to court documents, McDaniel served as the Executive Director of ECPHA, a Louisiana state agency that received funding from HUD. In that role, McDaniel was the authorized signatory for ECPHA’s Bank 1 account, with that account receiving HUD funds to promote HUD’s housing support mission. To execute her scheme, McDaniel would transfer ECPHA funds from its Bank 1 account into her personal Bank 1 account and then transfer the funds from that account to CashApps belonging to others, who would then transfer the money back to her.The U.S. Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation investigated this case. It 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 made the announcement.An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Western District of Louisiana at www.justice.gov/usao-wdla.Related court documents and information may be found on the website of the District Court for the Western District of Louisiana at www.lawd.uscourts.gov or at https://www.lawd.uscourts.gov/cmecf-pacer, under Case Number 26-CR-00148.###Public AffairsUnited States Attorney’s Office Western District of Louisiana USALAW-News@usdoj.govwww.justice.gov/usao-wdlaTwitter @USAO_WDLA
Source: U.S. Department of Justice