Former State Fraud Enforcement Official Pleads Guilty to Federal Fraud Charge
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 39, of East Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of mail fraud related to his submission of a fraudulent application for a personal mortgage modification.
According to court documents and statements made in court, from approximately October 2012 through May 2013, while he was employed as the Director of Investigations for the State of Connecticut Department of Social Services (DSS), Office of Quality Assurance, PATRICK applied for a mortgage modification through JP Morgan Chase under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates. The application requested assistance in connection with a property PATRICK owned in East Hartford.
During the application process, PATRICK represented that the East Hartford property was his primary residence and was owner occupied when, in fact, the property was not his primary residence and he did not occupy it. PATRICK also fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program. Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.
The investigation revealed that, in connection with the loan application, PATRICK faxed fraudulent documents to JP Morgan Chase from DSS offices and used a DSS fax coversheet.
In his capacity as the Director of Investigations, PATRICK was responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs. PATRICK’s salary was partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.
Judge Bolden scheduled sentencing for August 31, 2015, at which time PATRICK faces a maximum term of imprisonment of 20 years.
PATRICK has been released on a $150,000 bond since his arrest on May 6, 2015.
This matter is being investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).