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Former NYC Department Of Corrections Chaplain And His Brother Sentenced In Manhattan Federal Court For Housing Fraud Scheme

FOR IMMEDIATE RELEASE
Thursday, February 28, 2013

Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEIB GLANZ, a former New York City Department of Corrections chaplain who conspired with his brother MENASHE GLANZ to defraud the government of more than $220,000 in federal housing subsidies, was sentenced today in Manhattan federal court to 45 days in prison. He previously pled guilty to making false statements to the U.S. Department of Housing and Urban Development (“HUD”) with the intent to defraud and was sentenced by U.S. District Judge P. Kevin Castel. MENASHE GLANZ previously pled guilty to theft of government funds and was sentenced to six months in prison last week by Judge Castel.

According to the Information, Indictment, and other court documents, as well as statements made during proceedings in the case:

LEIB GLANZ is a former Chaplain with the New York City Department of Corrections, who previously worked at the Brooklyn Detention Complex, in Brooklyn, New York, and the Manhattan Detention Complex, in Manhattan, New York, from October 2006 through June 2009.

LEIB and MENASHE GLANZ participated in a scheme to fraudulently obtain Section Eight Program housing benefits. Under the Section Eight Program, HUD subsidizes the rent of low-income tenants who meet certain income and eligibility requirements. In New York City, this program is administered by the New York City Housing Authority (“NYCHA”) and the New York City Department of Housing Preservation and Development (“HPD”).

As part of this scheme, MENASHE GLANZ applied for and obtained Section Eight housing benefits to live at an apartment located in Brooklyn, New York (the “Section Eight Apartment”). While MENASHE GLANZ received these benefits, his brother LEIB GLANZ actually resided at this apartment from 1996 through September 2011, while MENASHE GLANZ lived at another apartment that was not subsidized by the Section Eight Program. Additionally, according to documents submitted to NYCHA and HPD, LEIB GLANZ previously signed contracts with NYCHA on behalf of the landlord of the Section Eight Apartment, the United Talmudical Academy, which also purportedly employed MENASHE GLANZ. In the course of this scheme, LEIB and MENASHE GLANZ defrauded NYCHA and HPD of a total of approximately $222,985, with LEIB GLANZ responsible for defrauding NYCHA and HPD of approximately $36,484, and MENASHE GLANZ responsible for defrauding NYCHA and HPD of approximately $186,501.

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In addition to the prison term, Judge Castel sentenced LEIB GLANZ, 54, of Brooklyn, New York to one year of supervised release and ordered him to pay a fine of $3,000 and restitution in the amount of $36,484. Judge Castel sentenced MENASHE GLANZ, 51, of Brooklyn, New York, to 6 months’ home confinement to be followed by three years’ supervised release in addition to his prison term, ordered him to pay a fine of $3,000, and ordered restitution and forfeiture in the amount of $186,501.

Mr. Bharara praised the investigative work of the New York City Department of Investigation and NYCHA in this investigation.

This matter is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Steve C. Lee and Justin Anderson are in charge of the prosecution.

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