Fraud and Abuse in the City Section 8 program has always been widespread by other types of social services fraud such as Medicaid fraud always get more attention. This is slowly changing as New York City is cracking down on Section 8 fraud.
Eight New York City Section 8 participants have been arrested last week in the Bronx and Brooklyn on charges of lying on their New York City Housing Authority (“NYCHA”) applications in order to qualify for city housing resulting in NYCHA being ripped off of about $175,000. Some defendants misrepresented their incomes and some lied about their household composition, hiding the fact that their relatives, whose incomes exceeded Section 8 eligibility guidelines lived in their subsidized apartments.
Section 8 fraud occurs when applicants lie about their income and household size. State criminal charges in New York City Section 8 fraud cases may include Grand Larceny, Offering a False Instrument for Filing, Welfare Fraud, Criminal Possession of a Forged Instrument, Falsifying Business Records. These are the charges most defendants are facing if prosecuted in state courts.
Section 8 fraud may be prosecuted in federal courts as well. Of the recent Section 8 alleged fraudsters arrested last week, Lashanda Navarro of Bethlehem, PA, to her bad luck was arrested by the feds and charged with Theft of Public Funds. Upon conviction, this federal crime is punishable by up to 10 years in prison.
The difference between Navarro and others is that she participated in the program funded by the United States Department of Housing and Urban Development, allegedly defrauded NYCHA of federal subsidies making this a federal case.
