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OIG Case No. 06-024

OIG conducted a joint investigation with the Department of Housing and Urban Development OIG into allegations that a Department of State employee committed Section 8 rental assistance fraud by underreporting her income, falsifying employment documents and altering her wage statements to qualify for the housing subsidy.  When interviewed, the employee confessed to the allegations and in addition admitted to also underreporting her income to receive Food Stamps, Medicaid, and temporary assistance for needy families. On November 9, 2006, the employee?s security clearance was suspended.  The employee then notified the Bureau of Human Resources of her intent to resign from the Department effective on December 1, 2006. 

 

The subject accepted a plea agreement to two counts, including false claims and fraud in obtaining public assistance.  On October 16, 2007, the subject was sentenced on a felony count of False Claims and a misdemeanor count of Fraud in Obtaining Public Assistance.  The subject received 36 months of probation on each charge and was ordered to pay $50,384 in restitution to the District of Columbia.  As a result of the conviction the subject was also disqualified from receiving certain public assistance benefits for a period of six months.