Seven Individuals Arrested in Connection With $7.5 Million Multi-State Paycheck Protection Program Scheme
BOSTON – A Nantucket man who is a real estate developer and attorney was sentenced today in federal court in Worcester in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
James E. Levin, 62, formerly of Natick and now living on Nantucket, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison, three years of supervised release and ordered to pay restitution and forfeiture to be determined at a later date. In Sept. 2020, Levin pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.
From July 2010 to September 2011, Levin, as the manager of 5 May Street Apartments, LLC, applied for and obtained federal funds from the U.S. Department of Housing and Urban Development (HUD), through the City of Worcester, to rehabilitate a multi-unit apartment building at 5 May Street in Worcester. Since the City of Worcester distributes grant funds on behalf of HUD and the Massachusetts Department of Housing and Community Development, Levin submitted seven payment requests to the City for work he fraudulently claimed he completed on the building and associated costs. Despite not completing the work he claimed in the payment requests, Levin obtained over $2.3 million in funds for the 5 May Street project, which the City of Worcester was required to pay back to the government.
Acting United States Attorney Nathaniel R. Mendell; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Mendell’s Springfield Branch Office and Assistant U.S. Attorney Danial E. Bennett of Mendell’s Worcester Branch Office prosecuted the case.