Former City of Chicago Employee Submitted False Rental Assistance Applications

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The City of Chicago brought a false claims action against a former employee and a property management company on September 12 for allegedly submitting fake applications to the City's Emergency Rental Assistance Program (EARP).

According to a press release, Mayor Brandon Johnson and Corporation Counsel Mary B. Richardson-Lowry filed a suit claiming the former employee, who was a landlord and Illinois-licensed attorney working as a lawyer at the Chicago Department of Aviation and the Department of Procurement Services, submitted fraudulent ERAP applications in 2021 containing forged documents, fake rent amounts, and false time periods.

During a joint investigation by the Department of Housing and Department of Law, the city found out that the former employee had ties to another defendant, a property management company, that also submitted applications containing lies about the identities of tenants, rent amounts, and more.

The release states, "Altogether, the defendants submitted more than two dozen fraudulent ERAP applications to the City, seeking at least $705,250," but only obtaining about $200,000.

The ERAP was created to assist millions of renters with rent payments after the pandemic made them vulnerable to eviction.