“Operation FedRent” Defrauds Housing Programs

Federal employees who avoid reporting income in order to receive housing assistance are being warned by HUD that this action could risk them losing their jobs, paying large fines, or facing criminal penalties. An ongoing investigation by HUD has resulted in 34 indictments, 13 convictions, and $541,813 recovered thus far concerning this practice. This operation is titled “Operation FedRent,” and is designed as an anti-fraud program meant to expose and prosecute those aforementioned government employees. When federal employees fail to report their income in order to qualify for undeserved housing, it in turn denies and prevents eligible families from receiving housing assistance. In order to qualify for housing assistance, federal employees must rightfully fall within the guidelines used to identify all other eligible families throughout the US. According to HUD, computer matching techniques are being used to identify fraudulent income reporting.

For more information on this story, please visit http://www.hud.gov/news/release.cfm?content=pr08-002.cfm