Daquan Copeland, 35, of Houston, TX, and Esless White Sr., 51, of Jamaica, NY, pleaded guilty in federal court to conspiracy to commit mail fraud after engaging in a scheme with others to defraud the federal government of more than $187,000.
Each faces up to 30 years in federal prison and a fine of up to $1 million when sentenced later this year.
Messrs Copeland and White applied for emergency rental assistance through the North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) programme.
As part of their scheme, they and others submitted fake tenant leases for several properties in Lenoir County to support their applications. Between November 2020 and December 2021, Messrs Copeland, White, and others submitted 23 fraudulent applications and stole more than $187,000 in government housing funds for their personal use.
On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial support to millions of Americans affected by the economic fallout of the COVID‑19 pandemic.
As part of this relief, the CARES Act authorised $5 billion for Community Development Block Grant (CDBG) programs, giving states and local governments flexible federal funding to prevent, prepare for, and respond to the pandemic.
The US Department of Housing and Urban Development manages the CDBG programme, which supports economic and community development and provides long‑term recovery funding to states and localities after disasters and emergencies.
“Daquan Copeland and Esless White participated in a conspiracy that diverted more than $180,000 in limited taxpayer funds for their own enrichment, depriving a pandemic relief program of resources intended to help people struggling to remain in their homes,” said special agent in charge Jerome Winkle with the US Department of Housing and Urban Development Office of Inspector General.