A disgraced former chief financial officer has been sentenced to prison after he was caught embezzling nearly $2 million from a low-income housing complex in Long Branch.
John O’Donnell, who oversaw the finances at Washington Manor, a property for seniors and people with disabilities, was sentenced to seven years in New Jersey state prison, Monmouth County prosecutors said.
The Scheme Included Unauthorized Checks and Credit Card Fraud
Investigators said O’Donnell issued approximately 400 unauthorized checks to a construction company he owned, Many of the checks included forged signatures from Washington Manor employees. The total diverted funds added up to upwards of $1.9 million. Prosecutors said the money was spent on personal expenses, such as mortgage payments, home renovations, pool services and HVAC repairs.
O’Donnell was also caught charging more than $30,000 to the property’s credit card. Authorities said none of the spending was for the benefit of Washington Manor or its residents. Like the checks, the charges were entirely for personal expenses.
Investigation Timeline and Impact on Residents
- June 2023: An attorney for Washington Manor alerted prosecutors after an annual audit uncovered a $14,000 life insurance payment made in O’Donnell’s name.
- April 2023: The audit revealed irregularities, prompting an internal review.
- Following the alert: Prosecutors uncovered the 15-year scheme and filed charges.
O’Donnell initially pleaded not guilty. Later in court, he admitted to first-degree financial facilitation of criminal activity. As a result, he has been ordered to pay $1.7 million.
The theft affected a facility that serves seniors and people with disabilities, raising concerns about oversight at low-income housing complexes. Prosecutors are emphasizing the importance of strengthened financial controls to protect vulnerable residents.
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