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A woman convicted of bilking her Merrillville nonprofit employer out of thousands of dollars in fraudulent rental assistance payments now faces two years in prison and must pay $352,300 in restitution.
U.S. District Judge Phillip Simon sentenced Valencia Franklin, 52, of Lynwood, Illinois, after she pleaded guilty to wire fraud, a federal felony offense.
The U.S. Attorney’s Office in Indiana’s Northern District announced the sentence.
Franklin was sentenced to 24 months in prison, followed by 1 year of supervised release.
According to documents in the case, Company A, a not for profit organization located in Merrillville, Indiana, administered and distributed federal emergency rental assistance funds to local residents adversely affected by the COVID-19 pandemic in 2021.
Franklin worked for Company A as a CPA and defrauded the company by preparing fraudulent applications for emergency rental assistance which falsely claimed her family members were landlords for certain properties, when in reality they had no connection to these properties.
As a result of her false representations, Franklin caused hundred of thousands of dollars in fraudulent payments to be issued to herself and others, according to court documents.
Lake County hired Company A to administer and disburse millions of dollars of such funds to Lake County residents. Franklin requested to be put in charge of the Emergency Rental Assistance program.
Franklin systematically created fraudulent applications and false supporting documents that requested rental assistance payments, authorities said.
Knowing that rental assistance checks were typically issued to landlords to cover their tenants’ rent, Franklin had her family members and friends falsely pose as landlords so they would be the ones to receive the money.
This case was investigated by the U.S. Secret Service.
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