HUD Nabs Cheating Federal Employees

"Operation FedRent," an internal investigation by the Department of Housing and Urban Development (HUD), has resulted in 34 indictments and 13 convictions of federal employees on charges of defrauding housing assistance programs.

According to HUD's Office of Inspector General (OIG), the employees involved failed to fully report their incomes when attempting to qualify for federal housing assistance. By misrepresenting their incomes to obtain rental subsidies, the employees may have prevented eligible families from obtaining housing assistance.

"Operation FedRent is sending a very clear message to federal employees who are defrauding our programs - if you try to game the system, you'll be found," said HUD Secretary Alphonso Jackson in a press release. "This joint investigation protects the integrity of our housing assistance programs and makes certain every available dollar reaches those families who have a true need."

Along with the indictments and convictions, the investigation has resulted in the recovery of $541,813.

Currently spending more than $28 billion a year to support housing programs assisting approximately 4.8 million families, HUD estimates that under-reporting of income by applicants costs taxpayers $978 million annually.

Other agencies assisting in "Operation FedRent" included the Veterans Administration OIG, the Treasury Inspector General for Tax Administration, and the Department of Homeland Security OIG.

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About the Federal Office of Inspector General