Landlords own the property that they lease out to tenants. How do you know they own it? At the time of purchase, a seller issues what is called a warranty deed to the buyer. Call it a legal sales receipt since it is signed by a notary public. If that isn’t enough for proof of ownership there is a also mortgage documentation to consider. Or a tax bill. Even a homeowner insurance policy…the list goes on. Despite all these documents, lack of ownership didn’t get in the way for Joe Lewis to defraud the federal funded North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) program. Once again, an opportunity to highlight the vulnerabilities (blackholes?) in COVID-19’s emergency relief programs.
NC HOPE was designed to help individuals and families remain in their homes by covering overdue or upcoming rent payments. Jefferson recruited others to falsely pose as landlords for properties located in Eastern North Carolina. In the names of these nominee landlords, Jefferson prepared and submitted fraudulent North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) loan applications for emergency rental assistance. When the applications were approved, NC HOPE mailed checks to addresses controlled by Jefferson. Approved they did. Jefferson and his co-conspirators were responsible for the submission of at least 44 fraudulent applications for rental assistance, resulting in the disbursement of approximately $279,000. Jefferson traveled with the nominee landlords to area banks to negotiate the checks and split the proceeds.
On August 13, 2024, Joe Lewis Jefferson pled guilty. He faces up to 31 years in prison. Shout out to the criminal investigative arm of the I.R.S. in this case.
Today’s Fraud of The Day is based on article “Nashville Couple Pleads Guilty To COVID Fraud Scheme” published by the Johnston County Report on August 13, 2024.
Joe Lewis Jefferson, 49, of Nashville, North Carolina, pled guilty for executing a scheme to defraud a program designed to help struggling North Carolinians stay in their homes during the COVID-19 pandemic. He faces up to 31 years in prison. On March 27, 2024, Jefferson’s wife, Danyael Davis Jefferson, pled guilty to conspiracy to commit mail fraud for her role in the scheme.
According to information presented in court, Jefferson recruited others to falsely pose as landlords for properties located in Eastern North Carolina. In the names of these nominee landlords, Jefferson prepared and submitted fraudulent North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) loan applications for emergency rental assistance.
