Related Federal Cases
Ex-Cop’s HUD Scam Lands Him Behind Bars
BEAUMONT, Texas – Chad Wayne Hogan, a 47-year-old former Orange County Sheriff’s Detective, has been sentenced to federal prison for his role in a HUD fraud scheme.
According to court documents, Hogan pleaded guilty to money laundering on Sep. 6, 2016, and was sentenced to one year and one day in federal prison by U.S. District Judge Marcia A. Crone.
Hogan was employed as a detective with the Orange County Sheriff’s Office from March 2009 to August 2015. During this time, he deposited approximately 4,302 checks into a bank account at MCT Credit Union titled ‘Starcomm Wireless.’
These checks, totaling $187,706, were written on bank accounts held by Beverly Place apartments, Cedarwood apartments, and Villa Main apartments in the Port Arthur/Groves, Texas area. Employees of the apartment complexes would meet with Hogan, give him the checks, which he would deposit in his account.
Hogan would then give approximately 2/3 of the money back to the employees, keeping the remaining 1/3 for himself. The checks Hogan received from the employees were payable to tenants of the complexes and were written under the Housing and Urban Development’s (HUD’s) utility assistance program.
The HUD utility assistance program provides qualifying persons a monthly check to help offset their utility costs. However, many of the tenants at Beverly Place, Cedarwood, and Villa Main were not aware they were receiving these benefits. On-site managers at the complexes engaged in a scheme to fraudulently sign tenants up for HUD benefits without the tenants’ knowledge, and then use the money provided by HUD for themselves.
Hogan was aware that the checks he was depositing represented the proceeds of some form of unlawful activity, and did so to disguise the nature of the funds. He was also ordered to pay restitution in the amount of $187,706, as this was his portion of the scheme.
The case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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