Four Family Members Charged with Federal Program Fraud, Money Laundering and Perjury
Four individuals were charged in an eight-count indictment, unsealed today, which alleges federal program fraud, money laundering and perjury, announced U.S. Attorney Matthew Schneider.
Schneider was joined in the announcement by Brad Geary, Special Agent in Charge of the U. S. Department of Housing and Urban Development, Office of Inspector General and Special Agent in Charge Timothy R. Slater, Federal Bureau of Investigation, Detroit Division.
The indictment charges Brian Leslie Loren, 57, of Daytona Beach, Florida, Ryan Adam Loren, 32, of Orlando, Florida, Kayla Jean Loren, 29 of Orlando, Florida and Jaime Michael Johnson, 41, of South Daytona, Florida with conspiracy to commit federal program fraud between August 2008 and August 2016. Brian Loren, Ryan Loren, and Jaime Johnson are also charged with money laundering. Ryan Loren and Kayla Loren are also charged with perjury. The defendants are relatives of the former Executive Director of the St. Clair Housing Commission Lorena Loren, who was convicted of conspiring with the defendants to steal federal funds provided to the Commission by the U.S. Department of Housing and Urban Development (‘‘HUD”) to administer HUD’s low-income housing programs for assisting low-income families, the elderly and the disabled. The defendants are alleged to have unlawfully obtained over $150,000 in federal funds over the course of the conspiracy. The indictment further alleges that the defendants established joint bank accounts to facilitate access to the ill-gotten funds by the defendants and others. In addition, Defendants Ryan Loren and Kayla Loren are alleged to have testified falsely before the grand jury during the investigation of the matter.
United States Attorney Matthew Schneider said, “When we weed out corruption, our prosecutions will spread from the branches to the very roots of this poisonous, corrupt tree. No one involved in perpetrating fraud and exploiting federal programs — especially those designed for our most vulnerable citizens — is immune from prosecution.”
Brad Geary, Special Agent in Charge, HUD Office of Inspector General stated, "The charges disclosed today prove our continuing resolve to root out fraud in all forms, especially when the funds involved should have been used to help our neediest families. It is our continuing core mission to work jointly with our Federal law enforcement partners and the United States Attorney's Office to protect the integrity of our housing programs and to take strong action against those who seek to personally benefit from taxpayer funded subsidies."
"These defendants are alleged to have participated in and attempted to cover up fraud against public programs that are intended to subsidize housing costs for those with a legitimate need," said FBI SAC Slater. "The FBI and its law enforcement partners remain committed to investigating and prosecuting this type of fraud."
This case was investigated by agents of the Detroit HUD office of Inspector General and FBI Macomb. The case is being prosecuted by Assistant United States Attorneys Dawn N. Ison and Shankur Ramamurthy.
An Indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.