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Augusta Housing Department Under FBI Investigation for Missing Funds

FBI agents probing missing COVID-relief funds in Augusta's Housing Department

News Summary

Augusta, Georgia, is embroiled in an FBI investigation regarding approximately $6.5 million in COVID-relief funds allegedly mismanaged by the Housing and Community Development Department. The investigation is focused on Director Hawthorne Welcher, who is currently on administrative leave. The federal scrutiny stems from unmet obligations for rental assistance programs during the pandemic. Additional concerns have arisen from leases linked to local development. This investigation prompts serious questions about the local government’s financial management and effectiveness.

Augusta’s Housing Department Under FBI Investigation for Missing COVID-Relief Funds

Augusta, Georgia, is currently facing a significant investigation by the FBI concerning approximately $6.5 million in COVID-relief funds that have gone missing from the city’s Housing and Community Development Department. FBI agents were observed entering the Augusta-Richmond County Municipal Building on May 19, 2025, confirming an active investigation, although the agency has not provided specific details surrounding the case.

Investigation Focus on Department Director

Sources close to the investigation indicate that the primary focus is on Hawthorne Welcher, the Director of Housing and Community Development, who has been placed on administrative leave amid the inquiry. The missing funds were originally designated for rental assistance during the COVID-19 pandemic, a financial aid program aimed at supporting vulnerable populations affected by the health crisis.

Federal Scrutiny Over Misallocated Funds

The matter came to light when the U.S. Treasury Department reached out to Augusta’s Finance Department, requesting the return of the funds that had not been utilized for their intended purpose. This communication raised flags within the city government, prompting officials to take immediate action, leading to an audit of the Housing and Community Development Department while Welcher remains on paid administrative leave.

Lease Agreement Under Investigation

Additionally, the investigation has expanded to a recent lease agreement between the Augusta Land Bank Authority and WODA Cooper Development pertaining to the Weed School. This lease, which was signed on May 16, 2025, followed a series of expedited meetings and is reportedly also under scrutiny by investigators.

City Government’s Financial Management Questioned

Augusta’s city government has recently faced criticism for failing to promptly repay federal grant money intended for COVID-era programs focused on preventing evictions. The delays in the repayment process have intensified the scrutiny towards the administration and have likely contributed to the FBI’s involvement in this investigation.

Legal Complications for the Mayor

Compounding the city’s troubles, Wells Fargo Bank has filed two lawsuits against Augusta’s Mayor Garnett Johnson and his wife, linked to unspecified legal issues that add another layer of complexity to the city’s governance. While Mayor Johnson is aware of the FBI investigation, he has not reportedly been contacted directly by federal agents concerning this matter.

Background Context on Missing Funds

The missing $6.5 million represents a significant amount of federal aid that was meant to assist households facing eviction due to the economic impacts of the COVID-19 pandemic. The Housing and Community Development Department plays a crucial role in distributing these funds to support low-income residents, which makes the investigation particularly concerning for the community.

Next Steps in the Investigation

As the FBI continues to examine the circumstances surrounding the missing funds and the related lease agreement, the city government is also preparing to comply with ongoing audits and federal inquiries. The outcome of this investigation may have significant repercussions for Augusta’s municipal leadership and its ability to manage federal funds in the future.

Residents and stakeholders remain apprehensive as the situation develops, emphasizing the importance of transparency and accountability in local government operations.