Former Whitefish Housing Director Awarded $1.5 Million in Defamation Case, Jury Cites Authority Misconduct

Whitefish, MT — In a significant legal decision that underscores the delicate interplay between public trust and administrative accountability, the former executive director of the Whitefish Housing Authority, Lori Collins, has been awarded $1.5 million in damages by a Flathead County District Court jury. The award on Wednesday comes as a conclusion to a defamation lawsuit initiated by Collins against her former employer, shining a spotlight on the challenges faced by leaders in the non-profit sector.

The jury broken down the awarded sum, specifying $850,000 for damage to Collins’ reputation, $75,000 for lost wages, and $575,000 for emotional distress. This verdict arrived following allegations that Collins had been defamed through statements made by her predecessor, Dwarne Hawkins, and subsequently propagated by the Daily Inter Lake and Whitefish Pilot newspapers in July 2023. These publications have since issued a correction.

Compounding the situation, it was revealed in court that Dwarne Hawkins had previously pleaded guilty to embezzling at least $100,000 from the Whitefish Housing Authority, a case separate yet intrinsically linked to the defamation trial given the overlapping personnel and issues at stake.

In response to the unfolding events, the jury relayed a pointed message to the housing authority’s officials during their verdict delivery, noting a “lack of care and professionalism shown to Mrs. Collins from WHA has eroded more public trust than the original situation.” This stern admonishment is accompanied by an urging for the housing entity to reassess its organizational leadership and future direction.

Acting Director of the Whitefish Housing Authority, Riss Getts has publicly addressed the court’s decision, emphasizing respect for the judicial process and the intention to review and potentially refine internal operations. “Our mission to provide safe, decent and affordable housing to the people of Whitefish remains unchanged,” Getts stated, indicating a commitment to transparency and improved community relations moving forward.

The authority, which is responsible for managing Section 8 and public housing programs in Whitefish, is overseen by a board consisting of seven members. The programs and services they offer are pivotal for many low-income residents in the area, making the implications of this case resonate not just within the confines of legal discourse but within the broader socio-economic landscape of the community.

Hawkins, hired after Collins resigned and prior to his legal troubles becoming public, had his tenure conclude abruptly in March 2024 after the allegations of his financial misconduct surfaced. He admitted to a range of fraudulent activities including inflating payroll, using the authority’s credit cards for personal expenses, and directing funds to fictitious businesses under his control.

With sentencing set for February 7, Hawkins faces a potential maximum of 10 years of imprisonment, a sizable $250,000 fine, and a subsequent three years of supervised release, pending further judicial review.

This case not only highlights crucial aspects of fiduciary responsibility and the ethical obligations of non-profit executives but also serves as a pertinent reminder of the broader implications such legal battles can have on community trust and organizational integrity.

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