| FOR IMMEDIATE RELEASE May 13, 2008 WWW.USDOJ.GOV/USAO/CAN |
OAKLAND, Calif. – Jubilee Restoration, Inc. pleaded guilty today in federal court to submitting false claims to HUD and was sentenced to five years probation and $177,381.28 in restitution, United States Attorney Joseph P. Russoniello and Special Agent in Charge Wayne North, U.S. Department of Housing and Urban Development, announced.
In pleading guilty, Jubilee admitted that it had obtained two grants from HUD under the Supportive Housing Program (SHP) for the purported purpose of providing services to homeless youths in Berkeley, Calif., who, as characterized by HUD, are between the ages of 18 and 25. Through the acts of Jubilee’s former deputy executive director, Gordon W. Choyce II, Jubilee submitted claims for reimbursement to HUD based upon misrepresentations that certain employees, including Gordon W. Choyce II, had been paid with SHP funds for counseling homeless youths and for other supportive services in compliance with the terms and conditions of the SHP grant agreements, knowing that such claims were false, fictitious and fraudulent. Jubilee further admitted that it had double-billed and received payments from the City of Berkeley under Measure O, and from the City’s Community Development Block Grant Housing, based upon the same alleged work hours submitted to HUD for reimbursement under the SHP program.
“By making false, fictitious and fraudulent claims to wrongly obtain federal grants, the officials at Jubilee Restoration ultimately took money away from the very individuals they were supposed to be helping,” Russoniello said. “Any person or organization that seeks to and/or obtains federal funds by fraud and deceit, trickery or false pretenses, from programs designed to assist the needy or under privileged will be investigated and prosecuted to the fullest extent of the law. Especially now, in these uncertain economic times, when millions of taxpayer dollars are being made available to communities throughout the country, including in the Northern District of California, the federal departments and agencies who are charged with the responsibility for disbursing these funds to eligible recipients only are equally committed to reporting instances of fraud and abuse or attempts thereat to the appropriate law enforcement agencies. When those matters are referred to us they will, whenever possible, be prosecuted.”
Jubilee Restoration, Inc. is a faith-based non-profit organization that was incorporated in the State of California in 1996 and is located in Berkeley.
Deborah R. Douglas is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Laurie Best. The prosecution is the result of a lengthy investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General.
Further Information:
Case # CR 09-00440 CW
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