How Many People Live at Your House?

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Everyone has needs – the most basic being food, clothing and shelter. Today’s Fraud of the Day from the Pocono Record, addresses a potential case of fraud involving the last of these three needs? shelter.

The article reports that a low income housing resident has been charged with defrauding the Section 8 Housing Choice Voucher program. So, what is Section 8? It is a federal program, administered at the local level, ”designed to assist low to very low income households get decent housing. Tenants receiving assistance must meet income and eligibility requirements.”

And, how did the defendant allegedly defraud the program? According to authorities, the defendant was residing in her subsidized housing with her husband. (Okay, so what’s the problem?? Authorities allege that he was not listed as a member of the household on her Section 8 documentation. It is alleged that because he was employed, she would not have qualified for the Section 8 rent subsidy if she had disclosed that he was living there. (If true, that’s troubling.? Oh yeah, tax documents show that the defendant’s husband was listed as residing in the home as far back as 2009, and he makes a salary of nearly $100K.

The defendant is, of course, innocent until proven guilty. But, the facts alleged highlight an important point: the truth counts. It is just as possible to commit fraud by omitting information as it is by making up information, as we’ve seen in cases of unemployment fraud and tax refund fraud. Above all, it is important to watch for potential instances of fraud, just as the housing authority did here.

So, here’s the question for the day? what have you done to spot fraud in your agency today?

Source: Today’s ”Fraud of the Day” is based on an article titled, ”East Stroudsburg Couple Accused of Housing Fraud Earned Almost $100K,” published by the Pocono Record on October 24, 2012.

An East Stroudsburg low income housing resident was charged with housing fraud after investigators discovered her family’s 2011 income was almost $100,000.

Detectives from the Monroe County District Attorney’s Office charged Dawn Babbitt with theft by deception/false impressions and theft by deception, both felonies, and unsworn falsifications to authorities, a misdemeanor charge.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.