NEWS RELEASE
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
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Today the Michigan State Housing Development Authority (MSHDA), in cooperation with the Presque Isle County Sheriff’s Office and the Cheboygan County Prosecutor’s Office announced the successful prosecution of Mitchell James, a northern Michigan landlord and business owner who defrauded the COVID Emergency Rental Assistance (CERA) program.
MSHDA’s Audit, Compliance, and Fraud Investigation Division and the Presque Isle County Sheriff’s Office spent two years and eight months investigating James in response to a report of suspected fraud and found that he had conspired with others to submit multiple fraudulent CERA applications. As a result of those efforts, James received jail time, community service, and was ordered to pay full restitution with court fines and fees of approximately $158,000.
“The CERA program was created to provide vital support to renters and landlords when they needed it most,” said Amy Hovey, CEO and Executive Director of MSHDA. “While cases of fraud are rare, we remain steadfast in our commitment to protecting federal funds and holding bad actors accountable. We are grateful for the partnership of state, county, and local law enforcement in safeguarding these resources, thoroughly investigating any reports of fraud, waste, or abuse, and recovering any misused funds to ensure our programs serve those who truly need them.”
During the COVID-19 pandemic, MSHDA processed 307,145 CERA applications and provided $983.1 million in aid to help Michigan families in need to avoid eviction, while also ensuring landlords could recoup past due rent. The CERA program is now closed to new applicants.
“This case represents the value of law enforcement partnerships to protect the integrity of MSHDA programs and preserve program funds for the most vulnerable Michigan residents who are in need of housing assistance,” said Jonathan Hilliker, Director of MSHDA’s Audit, Compliance, and Fraud Investigation Division. “MSHDA Fraud Investigator Frank Mostek and Detective Trevor Bullock of the Presque Isle County Sheriff’s Department worked tirelessly on this case to ensure this successful prosecution. MSHDA’s fraud teams continue to collaborate with partner agencies to hold fraudsters accountable.”
Anyone who suspects fraud, waste, or abuse of any MSHDA program can call 517-335-9953 or use MSHDA’s online fraud complaint form.
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