A Nashville resident, Joe Lewis Jefferson, was sentenced to four years in prison for orchestrating a scheme to fraudulently obtain emergency rental assistance funds designated for those affected by the COVID-19 pandemic. The sentence includes three years of supervised release and an order to pay $323,824 in restitution to the U.S. Department of Treasury.
Jefferson, 50, pled guilty on August 12, 2024, to conspiracy to commit mail fraud and failure to file a tax return. Court documents revealed that Jefferson recruited individuals to pose as landlords of properties in Eastern North Carolina. He then prepared and submitted fraudulent applications for emergency rental assistance through the North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) program. Upon approval, checks were sent to addresses controlled by Jefferson, who then negotiated them at banks with his accomplices.
The fraudulent activities resulted in at least 44 fake applications being approved, leading to approximately $279,000 being disbursed unlawfully.
The NC HOPE Program aimed to provide federal COVID-19 relief funds as emergency rental assistance for renters facing eviction or homelessness during the pandemic. It allowed renters to apply online for assistance covering up to 15 months of overdue or future rent payments directly paid via checks sent to landlords.
U.S. Attorney Michael F. Easley Jr., representing the Eastern District of North Carolina, announced the sentencing after it was handed down by U.S. District Judge James C. Dever III. The case was investigated by IRS-Criminal Investigation and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Toby Lathan.
Further details can be accessed through court documents available on the website of the U.S. District Court for the Eastern District of North Carolina or PACER under Case No. 7:22-CR-00068-D.