ALBUQUERQUE – The U.S. Attorney's Office announced today that Carolyn Luna-Anderson has agreed to pay $735,000 to resolve allegations that she improperly obtained federal housing assistance funds by concealing conflicts of interest and submitting claims for ineligible rental assistance payments through a HUD-funded program serving individuals experiencing homelessness.
According to the settlement agreement, Luna-Anderson founded and served as Executive Director of The Life Link, a Santa Fe nonprofit that received HUD Continuum of Care grants to provide housing assistance at La Luz Special Needs Apartments. The government alleged that Luna-Anderson simultaneously controlled the nonprofit administering the federal grants and the entity that owned the apartment complex, yet repeatedly certified that no conflicts of interest existed in grant applications and disclosure forms submitted to HUD between 2015 and 2018.
The government further alleged that Luna-Anderson sought HUD reimbursement for rental assistance payments that were not permitted under program rules, including payments for vacant units and amounts exceeding allowable rental assistance limits.
To resolve these allegations, Luna-Anderson agreed to pay $735,000.00 to the United States. The settlement resolves civil claims under the False Claims Act, the Program Fraud Civil Remedies Act, and common law theories including breach of contract, payment by mistake, unjust enrichment, and fraud. As part of the settlement, Luna-Anderson admitted and acknowledged that the conduct underlying the government's allegations involved misrepresentations, fraudulent omissions, and deceptive conduct that caused financial harm to the United States.
“Federal dollars come with accountability. Those entrusted with public funds must meet the obligations that come with that responsibility and ensure those resources serve the purposes for which they were provided,” said F.A. United States Attorney Ryan Ellison. “My office will continue working with our agency partners to protect taxpayer dollars, promote accountability, and ensure that those entrusted with federal resources meet their obligations.”
“Carolyn Luna Anderson exploited her position and insider knowledge to personally benefit from federal funds intended to provide supportive services to help individuals and families experiencing homelessness,” said Acting Special Agent in Charge Aaron McCullough. “HUD OIG remains committed to working with our law enforcement partners to aggressively pursue and hold accountable those who engage in activities that threaten the integrity of HUD programs.”
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
F.A. United States Attorney Ryan Ellison for the District of New Mexico and Aaron McCullough, Acting Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, made the announcement today.
The matter was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the District of New Mexico. The settlement was handled by Assistant United States Attorney Ruth F. Keegan and Auditor Philip Stella.