ST. CLAIR COUNTY, Mich. – The former executive of the St. Clair Housing Commission was sentenced Wednesday in connection with the conspiracy to commit fraud and steal more than $336,000 in federal funds.
Lorena Loren was sentenced to 37 months in prison after pleading guilty to conspiring to commit federal program fraud, U.S. Attorney Matthew Schneider said.
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Loren, 55, of Nicholls, Georgia, admitted to conspiring with several family members to steal federal funds provided to the commission by the U.S. Department of Housing and Urban Development. The money was supposed to be used to administer HUD's low-income housing programs in St. Clair County.
Loren said she engaged in various fraudulent schemes to obtain more than $336,000 in federal funds.
According to federal court records, Loren stole around $162,000 earmarked for HUD's Housing Choice Voucher Program, which helps low-income families lease privately owned rental properties.
Stolen money benefiting family members
Between August 2008 and August 2016, Loren entered into contracts from which she and nearly all of her immediate family members directly benefited, officials said. This violated HUD's regulations and guidelines.
Loren and several relatives also falsely claimed they owned rental properties that were owned by others, federal officials said.
As executive director, Loren fraudulently issued Section 8 rental subsidy payments to relatives, sometimes even in the names of former Section 8 tenants who were no longer in the program, officials said.
Loren also directed her family members to establish joint bank accounts to facilitate access to the funds by various members of the family, according to authorities.
Purchases with credit cards
In addition to the accusations above, Loren was found guilty of using the commission's two credit cards to make unauthorized purchases of personal items for herself and relatives between 2010 and 2016.
The purchases were made from Amazon.com, Walmart and Sam's Club stores, officials said.
Loren bought adult and infant clothing, furniture, food, beauty supplies, medications, household items and alcoholic beverages, among other things, with the company cards, officials said.
Loren had around $60,000 worth of the purchases shipped to relatives in Georgia and Florida, according to authorities.
Loren is accused of using the commission's operating budget to pay for all the unauthorized purchases, which totaled nearly $166,000. Officials said she also pocketed around $8,500 from the commission's petty cash funds.
Sentencing
Loren agreed to pay $336,240.62 in restitution to HUD as part of her guilty plea.
“This sentence shows that we will vigorously pursue public officials who steal the people’s money and use it for their own selfish gain," Schneider said.
“At such a critical time for the Department of Housing and Urban Development, with programs that are vital to the well-being of so many in our communities, it is critical that those entrusted to public service are completely dedicated to those in need," special agent in charge of HUD Brad Geary said. "The HUD Office of Inspector General is committed to partnering with federal prosecutors and fellow law enforcement to aggressively pursue those engaged in activities that harm HUD’s public housing programs.”
“It is important we all remember this type of fraud scheme is not a victimless crime," said Jeffery E. Peterson, acting special agent in charge of the Detroit division of the FBI. "It impacts many hardworking, taxpaying citizens and creates an unnecessary increase of government spending."