Scam by Prince Georges County Housing Deputy Director and her husband ripped off taxpayers of $112,000
Former Deputy Director of Prince George’s County Housing Authority and Her Husband Convicted in Scheme to Fraudulently Obtain Rental Subsidy Payments
GREENBELT, MD —A federal jury has convicted Carla Carter, former deputy director of the Prince George’s County Housing Authority, and her husband, Raymond Carter, both age 54, of Mitchellville, Maryland, on charges related to a scheme to fraudulently receive approximately $112,000 in rental subsidy payments from the Housing Authority.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to the evidence presented at the eight-day trial, Carla Carter was deputy director of the Prince George’s County Housing Authority (Housing Authority) from July 2007 through February 2012. From June through October 2008, she also served as the acting director of the Prince George’s County Department of Housing and Community Development (DHCD), the parent agency of the Housing Authority. Carla and Raymond Carter owned properties in Prince George’s County that were registered in HUD’s Section 8 Housing Choice Voucher Program (HCV Program). The HCV Program is a federal program assisting low-income families, the elderly and the disabled to afford decent, safe and sanitary housing in the private rental market. The program is administered by the Housing Authority.
The evidence showed that from October 2007 through December 2012, the Carters conspired to defraud HUD and the Housing Authority to obtain rental subsidy payments for the properties they owned in Bowie and Capitol Heights. During most of this period, Carla Carter was an employee with the Housing Authority who formulated policy and influenced decisions with respect to Housing Authority programs. To disguise the scheme and their ownership of the properties, the Carters identified a co-conspirator as the owner and landlord of the properties, and submitted numerous false documents to the Housing Authority. In 2008 or 2009, Carla Carter asked an employee of the Housing Authority and the DHCD to change the listed owner of one of the properties in DHCD’s computer records from “Carla Carter” to “Raymond Carter,” and to change the listed landlord of that property from “Carla Carter” to the name of the co-conspirator. The Housing Authority made rental subsidy payments to the co-conspirator. According to trial testimony, all of the rental subsidies were funneled into three bank accounts controlled by the Carters.
According to the trial testimony, on May 5, 2008, and April 18, 2011, Carla Carter submitted a false financial disclosure statement to the Prince George’s County Board of Ethics that failed to disclose her ownership of the properties. The Housing Authority placed Carla Carter on administrative leave and she submitted her letter of resignation on March 29, 2012, effective April 6, 2012.
Carla and Raymond Carter each face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, 13 counts of wire fraud, and conspiring to commit money laundering. U.S. District Judge George J. Hazel has scheduled sentencing for Carla and Raymond Carter on January 11, 2016, at 9:30 a.m. and 10:30 a.m., respectively. The Carters are released under the supervision of U.S. Pretrial Services.
United States Attorney Rod J. Rosenstein praised the HUD-OIG and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bryan E. Foreman and Nicolas Mitchell, who are prosecuting the case.