Financial Overcharging Schemes
Some landlords participating in HUD’s rental assistance programs have targeted vulnerable populations receiving assistance with financial fraud schemes that charge more in rent or other fees for housing services than they are allowed. These schemes take valuable dollars out of the pockets of low-income households by preying on their housing insecurity and also reduces the number of families that HUD’s important program can serve.
Video library
March 22, 2023
Former West Haven City Employee Sentenced to 13 Months in Federal Prison for Stealing COVID-19 Relief Funds
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN BERNARDO, 66, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 13 months of imprisonment, followed by three years of supervised release, for participating in a scheme to steal COVID-19 relief funds from the City of West Haven.
According to court documents and statements made in court, Bernardo was employed…
Press release
March 22, 2023
Berwick Woman Ordered to Pay $59,140 in Restitution to SSA, HUD Following Decade-Long Fraud
PORTLAND, Maine: A Berwick woman was sentenced today in U.S. District Court in Portland for Social Security fraud and theft of public money.
Chief U.S. District Judge Jon D. Levy sentenced Andreanna Politano, 60, to three years of probation. She was also ordered to pay $49,976.38 in restitution to the Social Security Administration (SSA) and $9,164.00 in restitution to the U.S. Department of Housing and Urban Development (HUD).…
Press release
March 16, 2023
Realty Company Owner Pleads Guilty in Fraud Scheme
PITTSBURGH, PA - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court to charges of bank fraud and conspiracy, Acting United States Attorney Troy Rivetti announced today.
Lee Ann Benninghoff, age 44, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Benninghoff owned and operated Complete Escrow and Bella Casa Realty. From February…
Press release
March 16, 2023
Environmental Justice PSA
We are committed to holding housing providers accountable for complying with environmental laws and regulations to protect the health of low-income households and vulnerable populations and we will use every tool available to combat environmental crime and injustice in housing.
Video library
March 14, 2023
Illinois Attorney Found Guilty of Embezzlement, Bankruptcy Fraud, and Tax Fraud
CHICAGO — A federal jury has found a former Illinois attorney and real estate developer guilty on two counts of embezzlement, six counts of bankruptcy fraud, and eight counts of tax fraud following a nearly four week-long trial in Chicago.
Evidence at trial revealed that ROBERT KOWALSKI, 61, of Chicago was a close associate of John Gembara, the former President of Washington Federal Bank for Savings (“WFBS”), a small bank in Chicago’s…
Press release
March 13, 2023
HUD OIG Announces Environmental Justice Initiative
WASHINGTON DC— The HUD Inspector General has launched an initiative to advance environmental justice in HUD-assisted housing (“HUD Housing”).
Inspector General Rae Oliver Davis stated: “My office is prioritizing oversight work that promotes safe, affordable housing by reducing environmental and public health hazards in HUD housing. Our commitment to this work will support the comprehensive environmental justice strategies outlined by…
Press release
March 09, 2023
Statement of Inspector General Rae Oliver Davis on HUD OIG’s Evaluation of HUD’s Processes for Monitoring Elevated Blood Lead Levels and Lead-Based Paint Hazards in Public Housing
WASHINGTON DC— Today, the U.S. Housing and Urban Development Office of Inspector General issued an evaluation report about HUD’s processes for monitoring children with elevated blood lead levels (EBLL) and lead-based paint hazards in public housing.The evaluation examined HUD’s processes for addressing cases of EBLLs in children residing in public housing determined the effectiveness of two trackers that HUD uses to ensure appropriate action is…
Press release
March 02, 2023
Former Raleigh County Housing Director Pleads Guilty to Federal Fraud Crime
BECKLEY, W.Va. Laquenta Lowe, 45, of Beckley, pleaded guilty today to conversion of public money exceeding $1,000. Lowe admitted to stealing at least $7,978.91 in federal funds while employed by the Raleigh County Housing Authority (RCHA).
According to court documents and statements made in court, Lowe was chief financial officer and accountant for the RCHA from July 1, 2018 through May 31, 2019. Lowe was executive director of the RCHA from…
Press release
March 02, 2023
Statement of Inspector General Rae Oliver Davis on HUD OIG’s Notification of Inquiry into HUD’s Termination of its Rental Assistance Contract at Peppertree Apartments in Memphis, Tennessee
WASHINGTON DC — Inspector General Rae Oliver Davis issues the following statement on the issuance of notification of inquiry to the Department concerning the circumstances resulting in the relocation of residents at Peppertree Apartments:
“Promoting safety in HUD housing is a top priority for my office. Everyone deserves to live in a decent, safe, and sanitary home without the fear of being exposed to safety hazards that…
Press release
February 28, 2023
Three Family Members of the Former Director of the St. Clair Housing Commission Sentenced to Prison for Defrauding HUD
DETROIT – Three family members of the former executive director of the St. Clair Housing Commission, Lorena Loren, were sentenced today to federal prison after having pleaded guilty to various federal offenses due to their involvement in Loren’s fraudulent scheme to steal money from the Section 8 program of the U.S. Department of Housing and Urban Development (HUD), United States Attorney Dawn N. Ison announced.
Ison was joined in the…
Press release
February 22, 2023
Apex Waukegan LLC and Integra Affordable Management LLC Fined for Breach of Contract
WASHINGTON DC—Apex Waukegan LLC (Apex), a multifamily housing landlord receiving rental assistance subsidies from the U.S. Department of Housing and Urban Development (HUD), and Integra Affordable Management LLC (Integra), Apex’s affiliated management agent, were ordered to pay $1,258,671 in civil money penalties for breaching their Housing Assistance Payment Contract (HAP contract) by knowingly failing to maintain…
Press release
February 14, 2023
Previous Participation Flags in Multifamily’ s APPS
A message from the IG: HUD did not sufficiently flag unacceptable physical condition scores to assess its controlling participants.
Video library
February 14, 2023
NYCHA Superintendents Sentenced To Prison For Accepting Bribes
Damian Williams, the United States Attorney for the Southern District of New York, announced that LEROY GIBBS was sentenced yesterday by U.S. District Judge Colleen McMahon to 33 months in prison, and JULIO FIGUEROA was sentenced today by U.S. District Judge Denise L. Cote to 15 months in prison, for accepting bribes in exchange for awarding no-bid contracts at the New York City Housing Authority (“NYCHA”) facilities where they worked. …
Press release
February 09, 2023
Dallas man heads to prison for deed fraud scheme
HOUSTON – A 61-year-old man has been sent to federal prison following his conviction of money laundering as well as conspiracy to commit and committing wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for approximately half a day following an eight-day trial before returning a guilty verdict Sept. 20, 2022, on all counts against Clarence Roland III.
Today, U.S. District Judge Lee H. Rosenthal ordered Roland to…
Press release
February 09, 2023
Holyoke Landlord Agrees to $15,000 Settlement for False Claims Act Violations
BOSTON – A Holyoke landlord, Carmen Manix, has agreed to pay a $15,000 settlement for submitting false claims to the government after receiving illegal utility payments from a low-income tenant while participating in a federal housing subsidy program.
The Federal Housing Choice Voucher Program, commonly referred to as “Section 8,” provides federal funding to low-income individuals to help them secure safe and affordable housing. The Department…
Press release
February 08, 2023
Three Family Members of the Former Director of the St. Clair Housing Commission Sentenced to Prison for Defrauding HUD
DETROIT – Three family members of the former executive director of the St. Clair Housing Commission, Lorena Loren, were sentenced today to federal prison after having pleaded guilty to various federal offenses due to their involvement in Loren’s fraudulent scheme to steal money from the Section 8 program of the U.S. Department of Housing and Urban Development (HUD), United States Attorney Dawn N. Ison announced.
Ison was joined in the…
Press release
January 30, 2023
Wakefield Man Sentenced for Decade-Long Mortgage Fraud Scheme
BOSTON – A Wakefield man was sentenced today in federal court in Boston for a mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.
Joseph Bates III, 42, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. In October 2018, Bates pleaded guilty to one count of conspiracy, three counts of wire fraud…
Press release
January 25, 2023
United States Files Complaint Against Bob Dean Jr. and Affiliated Corporate Entities for Financial Misconduct Stemming from Evacuation of Nursing Homes During Hurricane Ida
The United States has filed a complaint under the National Housing Act of 1934 (NHA) against Bob Dean Jr. and several affiliated corporate entities for misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA…
Press release
January 12, 2023
Cleveland Woman Sentenced to Prison for Stealing Pension Benefits and Defrauding Government Programs
CLEVELAND – Diane A. Mason, 52, of Cleveland, Ohio, was sentenced on Jan. 4, 2023, to two years in prison by U.S. District Judge Patricia A. Gaughan after she pleaded guilty to aggravated identity theft.
According to court documents, between January 2017 and October 2020, Mason stole $72,476 in Social Security Retirement Insurance benefits and $40,143.60 in monthly pension benefits from the Xerox Corporation, which were…
Press release
January 05, 2023