FIVE FAMILY MEMBERS CONVICTED OF DEFRAUDING OVER $100,000 IN GOVERNMENT SUBSIDIES BY FALSIFYING INFORMATION TO RECEIVE HOUSING ASSISTANCE
SANTA ANA, Calif. – (RealEstateRama) — Five family members were convicted yesterday of defrauding over $100,000 in government subsidies by falsifying information to receive housing assistance.
Charges
Dong Hong Phan, 75, Fountain Valley, pleaded guilty on Nov. 1, 2016, to one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and admitted sentencing enhancement allegations for taking over $50,000 and $100,000. He was sentenced to five years of formal probation and 14 days in county jail, and paid $176,613 in restitution to the Santa Ana Housing Authority and the Orange County Housing Authority.
John Giang Ly, 27, Westminster, pleaded guilty to one felony count of grand theft by public housing fraud, three felony counts of perjury by declaration, and admitted sentencing enhancement allegations for taking over $50,000 and $100,000. He was sentenced to three years in state prison.
Thu Ha Le, 54, Westminster, pleaded guilty to five felony counts of perjury by declaration, one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and admitted sentencing enhancement allegations for taking over $50,000 and $100,000. She was sentenced to five years of formal probation and 212 days in county jail.
Linda Linh Gia Ly, 23, Westminster, pleaded guilty to one misdemeanor count of grand theft by public housing fraud and was sentenced to five years of informal probation and 44 days in county jail.
Anh Tuyet Ly, 65, Fountain Valley, pleaded guilty to one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and admitted sentencing enhancement allegations for taking over $50,000 and $100,000. She was sentenced to five years of formal probation and 14 days in county jail.
Thang Chinh Ly, 66, Westminster, is charged with seven felony counts of perjury by declaration, one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and sentencing enhancement allegations for over $100,000 loss, aggravated white collar crime over $100,000, and property damage or loss over $65,000. If convicted, Thang Ly faces a maximum sentence of 13 years and four months in state prison. He is scheduled for a pre-trial hearing on Nov. 14, 2016, at 9:00 a.m. in Department C-5, Central Justice Center, Santa Ana.
Housing Subsidies Under HUD Section 8
The Santa Ana Housing Authority and Orange County Housing Authority (OCHA) are two of four agencies that administer housing subsidies in Orange County under Housing and Urban Development (HUD) Section 8 to aid low-income adults by providing rental housing assistance. To qualify for the subsidies, tenants must meet the income limit, renew their application annually, and are required to report any changes to their financial status or living situation within 15 days. Failure to report these changes can result in the termination of the tenant’s present housing subsidy, and the tenant may be charged with a Section 8 overpayment.
Circumstances of the Case
Five defendants were convicted of and Thang Ly is accused of the following:
In April 2003, Thang Ly received Santa Ana HUD Section 8 rental assistance for himself and his family. The contract rent for their home was approximately $1,850 per month, and he was required to pay $99 per month while the remaining $1,751 was subsidized. Thang Ly and his wife, Le, and their son John Ly, and daughter Linda Ly lived in the home.
From 2003 to 2013, the defendants received housing assistance from OCHA totaling over $176,000. They failed to report over $83,000 in overseas wire transfers to China to OCHA.
Thang Ly, Le, John Ly, and Linda Ly received rent vouchers from 2003 to 2013 for a residence that was owned by Anh Ly and her husband Phan, who purchased the property in cash. The defendants previously received notice about the rule against renting to relatives at the time of contracting with HUD to receive government housing assistance.
On March 22, 2007, John Ly turned 18 years old and failed to report to OCHA about his relationship to the homeowners and failed to report his income from selling illegal counterfeit merchandise. Thang Ly, Le, John Ly, and Linda Ly failed to report the earned income of John Ly to his assigned case worker for OCHA. They failed to report to OCHA that their residence was owned by Thang Ly’s sister, Anh Ly and her husband Phan.
On Sept. 22, 2011, Linda Ly turned 18 years old and failed to report her income, her family’s income, her relationship to the homeowners, and John Ly’s illegal sales of counterfeit merchandise to OCHA.
On Nov. 29, 2011, OCHA submitted the case to the Orange County District Attorney’s Office (OCDA) for investigation. The defendants were arrested on Oct. 1, 2015. The OCDA Bureau of Investigation investigated this case.
Deputy District Attorney Gautam Sood of the Special Prosecutions Unit is prosecuting this case.
Roxi Fyad, Spokesperson
Office: 714-347-8405
Cell: 714-323-4486
Susan Kang Schroeder, Chief of Staff
Office: 714-347-8408
Cell: 714-292-2718
