PHILADELPHIA – A local landlord has been forced to cough up $90,000 after it was discovered he was bilking the government by renting a subsidized Section 8 apartment to his father-in-law.
Mikhail Geneles, the alleged scam artist, entered into a settlement agreement with the government, resolving allegations that he participated in the Housing Choice Voucher Program (HCVP) – commonly known as Section 8 housing – while violating its requirements.
For over a decade, Geneles rented the subsidized apartment to his relative, falsely certifying that the tenant was not an immediate relative in documents submitted to the Bucks County Housing Authority.
“HUD instituted the HCVP program to help low-income residents without other options to obtain decent housing,” said Acting U.S. Attorney Jennifer Arbittier Williams. “By investigating this case, we put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.”
The settlement, which was reached without Geneles admitting any wrongdoing, is a stark reminder that the government will not tolerate waste, fraud, and abuse of its programs.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and the Bucks County Housing Authority. Assistant United States Attorney Colin Cherico handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability. Geneles has committed to setting things right and rectifying the problem, according to Acting U.S. Attorney Williams.
This is a clear warning to all landlords participating in the Section 8 program: you cannot put relatives in apartments for which you are receiving HCVP funds. The government will not hesitate to take action against those who would seek to cheat the system.
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Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes|Public Corruption
- Source: DOJ Press Release â†â€â€
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