Letitia James, Bribery, New York 2023

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Table of Contents

Former Non-Profit Director Sentenced for Bribery

A former regional director of a non-profit corporation has been sentenced to one year and one day in prison for conspiracy to commit bribery concerning programs receiving federal funds.

Sergio Barajas, 54, of Chino Hills, California, worked for the National Community Stabilization Trust as a regional representative over the western United States. His duties included helping the Trust and U.S. Department of Housing and Urban Development (HUD) non-profit organizations locate and buy foreclosed homes under a joint program between the Trust and HUD.

As part of the conspiracy, Barajas accepted bribes from multiple organizations in exchange for his influence to help them participate in the program. Heartland Coalition paid Barajas a total of $186,025 from 2011 to late 2012, and purchased 626 houses in California, Nevada, and Arizona.

Positive Housing Equations LLC paid Barajas a total of approximately $158,000 between 2011 and 2014 for his influence to provide its affiliate company, Alliance Revitalization Communities (ARC), with access to houses available through the program. ARC bought 167 houses, and Positive Housing Equations LLC paid Barajas a total of $158,000.

A real estate agent in Arizona agreed to pay Barajas for each house that her client bought through the Trust. The real estate agent paid Barajas a total of $36,711 to Barajas for at least 32 properties.

Barajas pleaded guilty in March 2021 to one count of conspiracy to commit bribery concerning programs receiving federal funds. In addition to the term of imprisonment, U.S. District Judge Richard F. Boulware II sentenced Barajas to three years of supervised release.

Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Michael Gibson of HUD OIG, Los Angeles, California, made the announcement. This case was investigated by HUD OIG, and Assistant U.S. Attorney Daniel Schiess prosecuted the case.

Residents can report allegations of fraud, waste, abuse, mismanagement or whistleblower related matters within HUD and HUD-funded programs to the OIG by calling the HUD OIG Hotline number at 1-800-347-3735 or making an online report at https://www.hudoig.gov/hotline/report-fraud.