A 47-year-old former Orange County Sheriff’s Detective has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Chad Wayne Hogan, of Orange, Texas, pleaded guilty on Sep. 6, 2016, to money laundering and was sentenced to one year and one day in federal prison by U.S. District Judge Marcia A. Crone.
According to information presented in court, from March 2009 to August 2015, Hogan, while employed as a detective with the Orange County Sheriff’s Office, deposited approximately 4,302 checks into a bank account at MCT Credit Union titled “Starcomm Wireless,” all of which represented proceeds from unlawful activity. Starcomm Wireless was a business once owned and operated by Hogan, but closed prior to 2009. Hogan, however, kept the Starcomm Wireless bank account open and active after the business ceased operation.
The checks were written on bank accounts held by Beverly Place apartments, Cedarwood apartments, and Villa Main apartments, all in the Port Arthur/Groves, Texas area and ranged in amount from $2 to $277, totaling $187,706. Employees of the apartment complexes would meet with Hogan, give him the checks, which he would deposit in his account. Hogan would then give approximately 2/3 of the money back to the employees, keeping the remaining 1/3 for himself. The checks Hogan received from the employees were payable to tenants of the complexes and were written under the Housing and Urban Development’s (HUD’s) utility assistance program. The HUD utility assistance program provides qualifying persons a monthly check to help offset their utility costs. However, many of the tenants at Beverly Place, Cedarwood, and Villa Main were not aware they were receiving these benefits. On-site managers at the complexes engaged in a scheme to fraudulently sign tenants up for HUD benefits without the tenants’ knowledge, and then take then use the money provided by HUD for themselves. Hogan was aware that the checks he was depositing represented the proceeds of some form of unlawful activity, and did so to disguise the nature of the funds. Hogan was also ordered to pay restitution in the amount of $187,706, as this was his portion of the scheme.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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A 44-year-old Houston woman has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Nhung Tuyet Nguyen, also known as Sandy Nguyen, pleaded guilty on July 26, 2016, to theft of government property and was sentenced to 22months in federal prison by U.S. District Judge Marcia A. Crone.
According to information presented in court, from October 2007 to December 2015, Nguyen was employed by the Beverly Place Apartments in Groves, Texas as an assistant Manager. As part of her job responsibilities, Nguyen assisted potential tenants in applying for U.S. housing and Urban Development (HUD) benefits for rental assistance and utility assistance. The rental and utility assistance programs are designed to help low-income individuals offset housing rental and utility costs with funds provided by HUD. In June 2007, Nguyen began applying for HUD rental assistance and utility assistance benefits without the tenants’ knowledge or consent. As a result, HUD provided funds to Beverly Place Apartments to cover tenants’ monthly rental fees. Nguyen required tenants, who were unaware HUD had already paid their monthly rent, to pay full market price for their apartments in cash or money orders. Nguyen would then take the cash or money orders and use them for her personal benefit. Nguyen enrolled at least five tenants in HUD rental and utility assistance programs without their knowledge. As a result, Nguyen caused a total loss to HUD of $393,583.00 and was ordered to pay that amount in restitution to the agency.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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