Two Indicted for Conspiracy to Commit Public Assistance Fraud

United States Attorney Andrew M. Luger announced an indictment charging KYLE LEWIS KIRSCHMAN, 52, and HOLLY KAY BLOOM, 37, with conspiring to commit public assistance fraud.  The indictment was filed in U.S. District Court in Minneapolis on December 21, 2016.

According to the indictment, KIRSCHMAN owned a house in Mankato, Minn. The house was divided into two apartments. KIRSCHMAN occupied apartment 1. On June 13, 2006, KIRSCHMAN and BLOOM entered into a lease for BLOOM and her family to reside in apartment 2. KIRSCHMAN filed an application to have the apartment designated as Section 8 housing under the US Department of Housing and Urban Development (HUD) Section 8 program. Among the requirements for Section 8 approval were that no member of BLOOM and KIRSCHMAN’s immediate families were related and that apartment 2 was the BLOOM family’s only residence. Around the same time, BLOOM applied for the Supplemental Nutrition Assistance Program (SNAP) and Medical Assistance (MA) benefits. She did not list KIRSCHMAN as a member of her household.

According to the indictment, BLOOM claimed for at least six years that she lived in apartment 2. However, from at least June 2007 through February 2014, KIRSCHMAN and the BLOOM family lived together in Apartment 1 and 2. During this time, KIRSCHMAN was an immediate family member of a member of the BLOOM family and the BLOOM family lived in both apartments 1 and 2, so KIRSCHMAN unlawfully received Section 8 rental subsidies. Additionally, BLOOM unlawfully received SNAP and MA benefits during this time because KIRSCHMAN was a member of her household, was continuously employed, and earned an income that disqualified the household for any such benefits.

During the relevant time period, KIRSCHMAN and BLOOM received Section 8 rental subsidies for apartment 2 in the amount of $35,221. BLOOM received SNAP benefits totaling $25,216 and MA benefits totaling $14,624.

This case is the result of an investigation conducted by the Blue Earth County Sheriff’s Office Welfare Fraud Investigator and US Department of Housing and Urban Development OIG.

This case is being prosecuted by Assistant U.S. Attorney Manda Sertich. 

Defendant Information: 

KYLE LEWIS KIRSCHMAN, 52
Mankato, Minn.

Charges:
• Conspiracy to commit public assistance fraud, 1 count

HOLLY KAY BLOOM, 37
Mankato, Minn.

Charges:
• Conspiracy to commit public assistance fraud, 1 count

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.