Federal employees who fail to report their income to qualify for housing assistance they would not otherwise be eligible for stand to lose their jobs, pay steep fines and face possible criminal penalties. That's the stern warning issued today by the U.S. Department of Housing and Urban Development as it reported that an ongoing joint investigation has so far produced 34 indictments, 13 convictions, and recovered $541,813.
In April of 2006, HUD and investigators from the Department's Office of Inspector General launched "Operation FedRent," an anti-fraud effort designed to expose and prosecute federal government employees who misrepresent their incomes to obtain rental subsidies, effectively denying housing assistance to eligible families.
"Operation FedRent is sending a very clear message to federal employees who are defrauding our programs - if you try to game the system, you'll be found," said HUD Secretary Alphonso Jackson. "This joint investigation protects the integrity of our housing assistance programs and makes certain every available dollar reaches those families who have a true need."
HUD Inspector General Kenneth Donohue said, "This investigation and its positive outcome were the result of a national collaborative effort representing the involvement of many agencies. I want to thank those that assisted in this endeavor specifically, the Veterans Administration OIG, the Treasury Inspector General for Tax Administration, and the Department of Homeland Security OIG who was particularly effective regarding Federal Emergency Management Administration and Transportation Safety Administration issues."