City of Chicago Brings False Claims Action Against Former Employee and Sham Property Management Company for Submitting Fraudulent Emergency Rental Assistance Applications

The City of Chicago has initiated legal action against a former employee and a property management company for submitting fraudulent applications to the Emergency Rental Assistance Program (ERAP), which was designed to aid low-income households during the COVID-19 pandemic. Announced on September 12, 2024, the lawsuit claims that the defendants applied for over $700,000 in rental assistance, successfully obtaining more than $200,000 through deceitful means. The city seeks to recover these improperly gained funds, as well as impose penalties and triple damages. The ERAP program, which provided critical financial support to renters in danger of eviction, was recognized for its effectiveness in keeping thousands of Chicagoans in their homes during the pandemic. Mayor Brandon Johnson highlighted the significance of the program, stating that the resources were intended for those in need, not for exploitation.

A thorough investigation conducted by the Department of Housing and the Department of Law revealed the fraudulent scheme orchestrated by the defendants. The lawsuit underscores the city's commitment to holding accountable those who misuse public resources meant to support vulnerable communities. This case serves as a reminder of the importance of safeguarding public assistance programs against fraud.