Former DC Housing Authority Employee Pleads Guilty to Fabricating Veteran Assistance Program To Defraud Lenders

June 6, 2026 - 04:55

A former employee of the District of Columbia Housing Authority has pleaded guilty to running a scheme where he invented a fake veteran assistance program to defraud mortgage lenders. The man admitted in court that he made false statements about properties he controlled in Washington, D.C., using those lies to get money from lenders.

Court documents show that the defendant created a phony program that supposedly helped veterans with housing costs. He then presented fake documents to lenders, claiming that the properties were part of this program. Based on those lies, the lenders approved loans or released funds they would not have otherwise provided. The scheme allowed him to obtain money under false pretenses, with the total loss to the lenders reaching hundreds of thousands of dollars.

Prosecutors said the man used his position at the Housing Authority to give his scheme an air of legitimacy, though the fake veteran program never actually existed. He faces up to 30 years in prison for making false statements to a financial institution. Sentencing is scheduled for later this year. The case highlights ongoing efforts by federal authorities to crack down on mortgage fraud, especially schemes that exploit programs meant to help veterans and low-income residents.