A Helena real estate agent has been sentenced after admitting to failing to provide necessary lead-based paint disclosures, exposing veterans and their families in Fort Harrison rental housing to significant lead levels. Melanie Ann Carlin, 54, from Clancy, Montana, has been sentenced to three years of felony probation and fined $150,000. According to U.S. Attorney Kurt Alme, Carlin pleaded guilty in November 2024 to one felony count of knowing endangerment.
Additionally, Mold Wranglers, Inc., a Kalispell-based company specializing in hazardous material mitigation, received a sentence of two years of probation, a $50,000 fine, and $348,000 in restitution payments to the U.S. Department of Veterans Affairs. The company admitted guilt to one count of False Claims Act Conspiracy, after filing false reports claiming to have completed lead paint abatement at Freedom’s Path Fort Harrison when none was done.
Chief U.S. District Judge Brian Morris presided over the case. U.S. Attorney Kurt Alme stated, "We take seriously the obligation to ensure the safety of our veterans and their families." He expressed gratitude to Assistant U.S. Attorney Ryan Weldon and investigators from HUD, the VA, and the EPA for their roles in the case.
Acting Special Agent in Charge Staci Gurin of the EPA Office of Inspector General highlighted, "Providing safe and affordable housing for low-income veterans and their families is something that should be taken with the utmost care." She noted that rather than adhere to legal requirements for lead remediation, fraudulent actions by Carlin and Mold Wranglers led to veterans and their families facing significant lead exposure.
Special Agent in Charge Machelle Jindra with the HUD Office of Inspector General stated, "Melanie Carlin engaged in dangerous behavior by failing to provide lead-based paint disclosures for housing units." She affirmed HUD's commitment to pursuing offenders who threaten the integrity of HUD programs.
Similarly, Special Agent in Charge Dimitriana Nikolov from the VA Office of Inspector General's Northwest Field Office emphasized their dedication to ensuring veterans receive services in a safe environment. Acting Special Agent in Charge Catherine Holston of EPA’s Criminal Investigative Division emphasized the severe consequences of lead poisoning and assured that those violating environmental laws will face justice.
The government's case detailed that from September 2019 until September 2021, Carlin did not provide required lead-based paint disclosures. Despite her years of experience and knowledge of building histories, Carlin signed documents wrongly indicating no risk of lead. The issue gained urgency when, in 2021, a child was found ingesting paint chips in one of the affected homes, resulting in significant health issues.
Federal agent interviews confirmed Carlin's acknowledgment of her failure to provide necessary warnings. Subsequent management undertook appropriate disclosures, emphasizing the earlier oversight's gravity.
The case was prosecuted by the U.S. Attorney’s Office following investigations conducted by multiple federal agencies, including the EPA, VA, and HUD.