HELENA – A Helena real estate agent and property manager who admitted to failing to provide lead-based paint disclosures as required to veterans residing in housing at Fort Harrison, in Helena, which resulted in the exposure of veterans and their families to significant levels of lead, was sentenced yesterday to three years of felony probation and fined $150,000, U.S. Attorney Kurt Alme said.
Melanie Ann Carlin, 54, of Clancy, pleaded guilty in November 2024 to one felony count of knowing endangerment.
Mold Wranglers, Inc., a Kalispell-based company that provides hazardous material mitigation services was also sentenced yesterday to two years of probation, a $50,000 fine, and $348,000 in restitution to be paid to the U.S. Department of Veterans Affairs for filing false reports for payment to a federal agency, claiming an abatement of lead paint was done at Freedom’s Path Fort Harrison when it was not. The company pleaded guilty to one count of False Claims Act Conspiracy in November 2024.
Chief U.S. District Judge Brian Morris presided.
“We take seriously the obligation to ensure the safety of our veterans and their families and will continue to work with our agency partners to hold accountable individuals like Melanie Carlin and businesses like Mold Wranglers who cut corners and jeopardize their safety in order to turn a profit. I want to thank AUSA Ryan Weldon for his work on this case, as well as the investigators from HUD, the VA, and the EPA,” U.S. Attorney Alme said.
“Providing safe and affordable housing for low-income veterans and their families is something that should be taken with the upmost care,” said Acting Special Agent in Charge Staci Gurin of the EPA Office of Inspector General. “Instead of taking the proper steps as required by law to ensure that the lead remediation process was handled properly for the housing, the fraudulent actions of these defendants exposed our veterans and their children to significant levels of lead. The EPA-OIG will actively pursue those who commit fraud against our EPA Programs that are in place to protect human health and the environment.”
“Melanie Carlin engaged in dangerous behavior by failing to provide lead-based paint disclosures for housing units which resulted in low-income veteran families and their children unknowingly being exposed to significant levels of lead,” said Special Agent in Charge Machelle Jindra with the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG). “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that threaten the integrity of HUD programs and our most vulnerable community members.”
“The VA OIG is dedicated to ensuring that veterans and their families receive VA services in a safe environment,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This sentencing reinforces that those who do not uphold safety and integrity standards will be held accountable.”
“The defendant placed our military veterans and their children in danger by callously disregarding reporting and disclosure requirements for lead-based paint in rental properties. Lead poisoning can have catastrophic effects on young children and pregnant women,” said Acting Special Agent in Charge Catherine Holston for EPA’s Criminal Investigative Division. “Today’s sentence sends a message that the agency will hold accountable anyone who places our military veterans and their children in harm’s way by violating our environmental laws.”
The government alleged in court documents that from September 2019 until September 2021, Carlin failed to provide lead-based paint disclosures as required, placing an individual in imminent danger of death and serious bodily injury and exposing low-income veteran families and their children at Freedom’s Path Fort Harrison to significant levels of lead.
Carlin is the owner of 406 Properties, Inc, a property management service in Helena, and has more than 26 years of professional real estate experience. In 2018, Carlin agreed to provide property management services for rental units known as Freedom’s Path Fort Harrison. The rentals included multiple homes for military veterans to use as affordable housing. In May 2019, Carlin received and forwarded an email from the Montana Department of Commerce requesting information detailing any lead-based paint remediation completed on the homes because the buildings were constructed before 1978. The buildings were constructed in approximately 1895 and 1905.
Despite the email, in June 2019, Carlin signed two Request for Tenancy Approval Forms for the Fort Harrison rentals. Carlin selected “lead-based paint disclosures do not apply because this property was built on or after January 1, 1978” on the form. Carlin knew the selections were false and did not provide lead-based paint disclosures to veterans seeking residence at Freedom’s Path Fort Harrison.
In September 2019, Carlin attended a meeting to discuss lead-based paint that was peeling at Freedom’s Path Fort Harrison. The meeting agenda identified “lead-based paint peeling in the units – doors won’t shut, paint peels when attempt to shut door” and veterans have identified “chipped paint” in the units. At this point, Carlin knew the buildings were built prior to 1978, and she knew deteriorating lead-based paint was located inside the buildings.
Despite Carlin’s knowledge and extensive real estate experience, she continued to sign forms indicating that the units were free of lead-based paint, or they were built after 1978, none of which was true. In addition, Carlin continued to fail to provide lead-based paint disclosures to the veterans and their families residing in the units.
The government further alleged that in December 2020, Carlin failed to provide a lead-based paint disclosure to a veteran of Freedom’s Path Fort Harrison. In September 2021, an 18-month-old child in the veteran’s home was found eating paint chips inside the unit. Subsequent medical testing confirmed the child had elevated blood lead levels exceeding levels considered to be “very high” and required treatment for lead poisoning. Lead poisoning can have catastrophic effects on children and their development, and Congress requires a warning about the effects of lead poisoning be given when individuals lease homes built prior to 1978.
When interviewed by federal agents, Carlin agreed she was familiar with the requirement to provide lead disclosures and confirmed that no lead disclosures were provided to veterans living in units at Freedom’s Path Fort Harrison. A review of the rental units confirmed lead was present in almost every unit, including the building where the 18-month-old child was present. A subsequent property management company corrected the omission by making lead disclosures to the veterans.
The U.S. Attorney’s Office is prosecuting the case. The Environmental Protection Agency Office of Inspector General, Environmental Protection Agency’s Criminal Investigation Division, the U.S. Veterans Affairs Office of Inspector General, and U.S. Department of Housing and Urban Development Office of Inspector General conducted the investigation.