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NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

WESTERN DISTRICT OF MISSOURI


BETH PHILLIPS


Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106

www.usdoj.gov../index.html


FEBRUARY 2, 2010

FOR IMMEDIATE RELEASE


APARTMENT MANAGER PLEADS GUILTY TO

MAKING FALSE STATEMENTS TO HUD


TRADED SEXUAL FAVORS FROM SECTION 8 TENANTS


            KANSAS CITY, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced that the former manager of a Kansas City, Mo., apartment complex pleaded guilty in federal court today to making false statements to the government about the incomes of Section 8 tenants in exchange for sexual favors.


            Meredith F. Sullivan, 55, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Scott O. Wright this morning to a federal information that charges him with making a false statement.


            Sullivan was the on-site manager at Sycamore Grove Apartments, 2920 E. 17th St., Kansas City, Mo. By pleading guilty today, Sullivan admitted that, from June 1, 2004, to July 1, 2009, he provided false information as to tenant income and household composition on HUD tenant certifications and re-certifications, in exchange for sexual relations (or the hope of sexual relations) with Section 8 tenants. As a result, Sullivan caused HUD to overpay Section 8 tenant rental subsidies in the approximate amount of $34,444.


            Sullivan also improperly moved applications on the Section 8 waiting list ahead of other applicants in exchange for sexual relations (or the hope of sexual relations) with the applicants. By improperly bumping applicants ahead on the waiting list, Sullivan caused HUD to overpay Section 8 rental subsidies in the amount of $104,167.


            As part of the scheme, Sullivan used his work computer to create 15 false letters, and forged signatures on those letters, for tenant files to corroborate the false income information provided in the tenant certification and re-certifications.


            Under federal statutes, Sullivan is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.


            This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General.



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