San Antonio, Texas – A local landlord has agreed to pay $15,000 to resolve allegations that it collected excess rent from a tenant in the U.S. Department of Housing and Urban Development’s (HUD) federal Housing Choice Voucher Program, commonly referred to as “Section 8.”
2011 Bandera Road, LLC leased property to certain tenants participating in the Section 8 program. This settlement resolves allegations that from November 2017 through January 2019, the company violated the False Claims Act by knowingly requiring one of those tenants to pay rent that exceeded what was contractually allowed.
According to the settlement, the landlord was paid a housing subsidy by HUD, which covered all or a portion of the tenant’s monthly rent. However, the landlord contractually agreed not to charge the tenant rent that exceeded the amount set by the public housing agency.
“The Section 8 program helps Americans in need of affordable quality housing. That purpose is undermined when a program participant overcharges a beneficiary of the program,” stated United States Attorney Ashley C. Hoff.
Special Agent-in-Charge Bertrand Nelson with the HUD Office of Inspector General added, “Those who seek out opportunities to prey on American families who rely on HUD programs for safe and affordable housing will be pursued and held accountable.”
The settlement resolves allegations contained in a lawsuit filed by a former tenant under the qui tam or whistleblower provisions of the False Claims Act. The False Claims Act permits private parties to file suit on behalf of the United States and share in any recovery.
The U.S. Department of Housing and Urban Development, Office of Inspector General, investigated this matter along with Assistant United States Attorney John Deck from the U.S. Attorney’s Office for the Western District of Texas. The qui tam case is docketed as United States ex rel. Elissa L. White and Elissa L. White, individually, v. 2011 Bandera Road, LLC, Cause No. 5:20-CV-488, (W.D. Tex.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
In total, 2011 Bandera Road, LLC agreed to pay $15,000 to resolve the allegations.
Defendant: 2011 Bandera Road, LLC
Crime: Violated the False Claims Act by collecting excess rent from a tenant in the U.S. Department of Housing and Urban Development’s (HUD) federal Housing Choice Voucher Program.
Location: San Antonio, Texas
Date: November 2017 through January 2019
Sentence: The company agreed to pay $15,000 to resolve the allegations.
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Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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