Former Department Of Corrections Chaplain And His Brother Plead Guilty In Manhattan Federal Court To Federal Housing Fraud Charges
FOR IMMEDIATE RELEASE
Tuesday, September 4, 2012
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEIB GLANZ, a former Chaplain with the New York City Department of Corrections, and his brother MENASHE GLANZ pled guilty today in Manhattan federal court to charges related to their participation in a scheme to fraudulently obtain federal housing subsidies.
Specifically, LEIB GLANZ pled guilty to making false statements to the U.S. Department of Housing and Urban Development (“HUD”) with intent to defraud, and MENASHE GLANZ pled guilty to theft of government funds. They pled guilty before U.S. District Judge Kevin P. Castel.
Manhattan U.S. Attorney Preet Bharara said: “Today’s guilty pleas ensure that Leib and Menashe Glanz will be held to account for their systematic fraud on the U.S. Department of Housing and Urban Development that spanned more than a decade.”
According to the Information filed today, the Complaint and the Indictment previously filed in this case, and statements made in connection with LEIB and MENASHE GLANZ’s guilty pleas:
LEIB GLANZ worked as a Chaplain at the Brooklyn Detention Complex, in Brooklyn, New York, and the Manhattan Detention Complex, in Manhattan, New York, from October 2000 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”). After obtaining these benefits, MENASHE GLANZ permitted his brother LEIB GLANZ to permanently reside at this apartment from at least 1996 through September 2011, while MENASHE GLANZ actually 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 GLANZ and MENASHE GLANZ defrauded NYCHA and HPD of a total of approximately $222,985, with LEIB GLANZ responsible for defrauding the agencies of approximately $36,484, and MENASHE GLANZ responsible for defrauding them of approximately $186,501.
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LEIB GLANZ, 54, of Brooklyn, New York, faces a maximum term of one year in prison and a maximum fine of the greatest of $100,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to the victim. MENASHE GLANZ, 50, of Brooklyn, New York, faces a maximum term of 10 years in prison and a maximum fine of the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to the victim as a result of the offense.
As part of their pleas, MENASHE GLANZ has agreed to pay approximately $186,501 in restitution, and LEIB GLANZ has agreed to pay approximately $36,484 in restitution.
Mr. Bharara praised the New York City Department of Investigation and NYCHA for their work in this investigation.
The case 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.