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Department of Justice
U.S. Attorney’s Office
Southern District of New York

FOR IMMEDIATE RELEASE
Monday, April 14, 2014

Manager Of Hud Section 8 Housing Found Guilty In Manhattan Federal Court On All Counts Relating To Bribery And False Statements

Novelette “Pat” Campbell Was Convicted Of Six Counts Relating To Bribery And False Statements In Connection With Selling Spots For Federally Subsidized Apartments At Tricham Housing In Manhattan

Preet Bharara, the United States Attorney for the Southern District of New York, Christina Scaringi, the Special Agent-in-Charge of the Northeastern Region of the U.S. Department of Housing and Urban Development (“HUD”), Office of Inspector General (“OIG”), and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that NOVELETTE “PAT” CAMPBELL, a manager of the federally subsidized Tricham Houses in Manhattan, was found guilty on Friday, April 11, 2014, of accepting bribes in connection with federal program funds, conspiracy to accept bribes in connection with federal program funds, and four counts of false statements relating to HUD certifications. The investigation that led to CAMPBELL’s arrest and her conviction last week was undertaken by HUD-OIG. CAMPBELL was convicted after a one-week jury trial before U.S. District Judge George B. Daniels.

Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found, for over a decade, Novelette “Pat” Campbell exploited her position as a manager of the Tricham Houses in Manhattan by illegally trading prime spots on the waiting list for federally subsidized apartments in exchange for cash. Her bribery scheme was uncovered by the dedicated investigators at HUD OIG and ICE HSI, and she now stands convicted after trial for her crimes.”

HUD OIG Special Agent-in-Charge Christina Scaringi said: “Friday’s verdict should send a strong message to those individuals who fail to exercise integrity in connection with HUD, we will vigorously pursue investigation and prosecution of all involved in order to maintain the integrity of our programs. Ms. Campbell’s case is especially egregious in that not only did she intentionally violate the Department's trust, she violated the trust of dozens of eligible families who followed the rules and waited years for a decent place to call home. Working in partnership with the U.S. Department of Homeland Security, Office of Homeland Security Investigations, the U.S. Attorney’s Office, and HUD OIG, we will continue to aggressively pursue allegations of corrupt management agent behavior.”

ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Instead of helping applicants who sought affordable housing, Ms. Campbell and her associates helped themselves to thousands of dollars in bribes and gifts from individuals who knew they were ineligible to receive government assistance. HSI and its law enforcement partners will continue to preserve the integrity of federally funded programs.”

According to the Indictment, as well as evidence presented at CAMPBELL’s trial:

From April 2000 through October 2011, CAMPBELL accepted bribes and engaged in a conspiracy to accept bribes from individuals who were not on a waiting list for subsidized housing at Tricham Housing. Rather than maintain the integrity of the waiting list and process applications in a first-come, first-serve basis as required by HUD, CAMPBELL sold spots on the waiting list for bribes. The people who paid bribes took apartments away from people who were on the waiting list for years, but never received apartments because CAMPBELL sold their spots for bribes. CAMPBELL accepted bribes ranging from $2,000 through $9,000, depending on the size of the apartment.

In addition, CAMPBELL falsified HUD certifications by falsely representing that all administrative procedures had been followed, when they had not, and, on two occasions, forged the signature of a tenant. CAMPBELL also altered original tenant applications for Section 8 housing to falsely add bribe payers as relatives of original applicants.

CAMPBELL, 55, of Bronx, New York, was convicted of six counts relating to accepting bribes in connection with federal program funds, conspiracy to accept bribes in connection with federal program funds, and four counts of false statements to HUD. The charges relating to accepting bribes in connection with federal program funds carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The count charging conspiracy to accept bribes in connection with federal program funds carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Each of the counts charging false statements funds carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. CAMPBELL is scheduled to be sentenced by Judge Daniels on August 12, 2014, at 10:00 a.m. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Bharara praised the investigative work of HUD OIG and ICE HSI. He noted that the investigation is continuing.

This case is being handled by the Office’s General Crimes Section. Assistant U.S. Attorneys Carolina A. Fornos and Rahul Mukhi are in charge of the prosecution.

U.S. v. Novelette Campbell Indictment

Press Release Number: 
14-109
Updated May 18, 2015