Former Worcester Housing Official Convicted of $2.3 Million Housing Fraud Scheme

BOSTON – A former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development was convicted by a federal jury yesterday in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.

Jacklyn M. Sutcivni, 47, of Dracut, was convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.

U.S. District Court Judge Timothy S. Hillman scheduled sentencing for December 14, 2021.

In August 2016, Sutcivni was indicted along with James E. Levin, a Natick real estate developer and attorney. Levin pleaded guilty in September 2020 and was sentenced on March 30, 2021 to 37 months in prison, three years of supervised release and ordered to pay forfeiture of $1,955,000.

“The defendant’s job was to distribute public funds to develop safe and affordable housing for Worcester, but as the jury found, she used her position as the City’s Director of Housing to allow $2.3 million in taxpayer money to go to a private developer – for work that was never even done,” said Acting United States Attorney Nathaniel R. Mendell.

The City of Worcester distributes grant funds on behalf of U.S. Department of Housing and Urban Development (HUD) and Massachusetts Department of Housing and Community Development (DHCD). Sutcivni, as part of her job with the City of Worcester’s Housing Development Office, was responsible for reviewing payment requests for HUD grant funds. From July 2010 to September 2011, Sutcivni approved seven fraudulent HUD grant funding requests submitted by Levin for work he falsely claimed to have completed on a building he managed and associated costs.

The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000.

The HUD Office of Inspector General, Federal Bureau of Investigation and U.S. Attorney’s Office worked together to bring this case to a successful conclusion.

The case was prosecuted by Assistant U.S. Attorneys Zachary T. Hafer and Amanda R. Strachan.

MORE FEDERAL CRIME NEWS

Public Corruption

Calhoun's Whig Past Haunts His Present

Oct 15, 1845

Public Corruption

Maryland Democrats, Inaugural Parade Scandal, Maryland 2024

Dec 12, 1912

Public Corruption

Jeffrey Epstein, Child Sex Trafficking, Washington D.C. 2008

Oct 1, 1924

Public Corruption

Mark Ciavarella, Racketeering, Pennsylvania 2011

Apr 9, 2015