Thomas Slack Sentenced for USDA Loan Fraud Scheme

Thomas Slack, 67, of Oakdale, Pennsylvania, is walking free—but under federal supervision—after being sentenced to five years of probation for running a wire fraud scheme that preyed on hopeful homebuilders and investors. Slack was also hit with a $1,000 fine and ordered to pay $27,500 in restitution, the Department of Justice announced today.

The conviction stems from Slack’s role as a member and director of the Great Falls Development Group, a shell operation that falsely claimed to be a legitimate residential real estate developer. Slack used the company to pitch investors and prospective homeowners on guaranteed access to U.S. Department of Agriculture (“USDA”) Rural Development loan programs—programs designed to help people build homes in rural areas. He wasn’t just misleading—he was lying.

According to court records, Slack told victims he was affiliated with USDA Rural Development and could underwrite and pre-qualify applicants for federal loans. These lies were the engine of his scam. Victims sent money believing Slack was securing financing and moving forward with construction. In reality, no homes were built, no loans were secured, and Slack pocketed the cash.

U.S. District Judge Arthur J. Schwab handed down the sentence after Slack pleaded guilty to wire fraud, a federal charge that reflects the use of electronic communications to execute a financial scam. Though prosecutors could have pursued prison time, the outcome keeps Slack out of federal custody—but under strict monitoring for the next half-decade.

The case was prosecuted by Assistant United States Attorney Robert S. Cessar, who argued that Slack’s actions undermined trust in federal housing programs and exploited vulnerable individuals trying to achieve homeownership in rural Pennsylvania. The USDA Office of the Inspector General led the investigation, tracing Slack’s false claims and financial trail.

Acting U.S. Attorney Soo C. Song emphasized that fraud against federal programs will be met with federal consequences. “Exploiting government-backed loan systems for personal gain is not a victimless crime,” Song said. “These programs exist to serve communities—not con men.”