Three Loren Family Members Jailed in HUD Fraud Scheme

Three members of the Loren family have been sentenced to federal prison for their roles in a brazen fraud scheme that stole from one of the most vulnerable populations in St. Clair County—low-income families relying on HUD’s Section 8 housing program. Brian Loren, 61, Ryan Loren, 36, and Kayla Loren, 33, all pleaded guilty to federal charges tied to the embezzlement of more than $73,000 in taxpayer funds meant to house the poor, elderly, and disabled.

Brian Loren, husband of the late St. Clair Housing Commission Executive Director Lorena Loren, was sentenced to 9 months in prison after admitting to conspiring to commit federal program fraud involving approximately $73,000. Court records show Brian Loren and an accomplice opened a joint PNC Bank account in Deland, Florida, where fraudulent Section 8 rental subsidy payments were funneled between August 2014 and August 2016—money that should have gone to qualified beneficiaries, not family members running a criminal operation.

Ryan Loren, Lorena’s son, received 11 months behind bars after pleading guilty to receiving unlawful compensation from HUD with intent to defraud. From August 2008 through August 2016, Ryan lied about his place of residence to illegally collect between $40,000 and $95,000 in HUD funds. He compounded his crime by lying under oath during a federal grand jury investigation—actions that drew sharp condemnation from federal prosecutors.

Kayla Loren, Ryan’s wife and Lorena’s daughter-in-law, was also hit with an 11-month sentence after admitting to the same charge: receiving unlawful compensation from HUD with intent to defraud. Between August 2010 and August 2016, she falsified information about who lived with her to claim improper benefits, also netting between $40,000 and $95,000. Like her husband, she later lied during grand jury testimony, undermining a cornerstone of federal justice.

Prior to sentencing, all three defendants paid $99,835.29 in restitution to HUD, fulfilling terms of their plea agreements. In total, $336,340.22 has now been repaid to HUD as a result of prosecutions tied to the Loren family’s fraud—money stolen by Lorena Loren before her death following her own 37-month sentence for orchestrating the scheme.

U.S. Attorney Dawn N. Ison slammed the defendants’ betrayal of public trust: “The HUD Section 8 program serves some of the neediest in our community—very low-income families, the elderly, and the disabled. We are committed to prosecuting public officials who steal from any federal program and anyone who assists in depriving lawfully entitled citizens of vital assistance. Truthful testimony under oath is the foundation of the American system of justice. There will be penalties for those who attempt to erode that.”