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Press Release

Dickson City Couple Agree To Pay $34,495.50 To Settle Federal False Claims Act Violations

For Immediate Release
U.S. Attorney's Office, Middle District of Pennsylvania

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the United States reached a civil settlement on April 10, 2017, with Peter Novajosky, age 68, and Kathy Novajosky, age 67, doing business as P&K Realty, of Dickson City, PA. The agreement resolves civil claims under the False Claims Act that the Novajoskys made false statements to obtain federal funds through the United States Department of Housing and Urban Development (HUD) housing assistance program. To resolve the government’s civil claims against them, the Novajoskys have agreed to pay the United States $34,495.50 pursuant to the settlement agreement.

 

According to United States Attorney Bruce D. Brandler, this settlement agreement resolves allegations that the Novajoskys submitted a form to the Lackawanna County Housing Authority for an approval of tenancy. The housing authority administered federal funds for HUD’s Housing Assistance Payments (HAP) program. Based on the representations made by the Novajoskys, the housing authority approved monthly HAP payments from October 1, 2008 through June 30, 2014. HUD requirements contained in the HAP contract entered into by the Novajoskys expressly precluded renting to a child of a landlord/owner. The Novajoskys did not disclose to the Lackawanna County Housing Authority or to HUD that the tenant was their daughter.

 

The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General. Assistant United States Attorney Timothy Judge handled the case.

 

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

 

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Updated April 12, 2017