Former PHA Manager Charged with Defrauding the City Program of More Than $400,000
|U.S. Attorney’s Office November 30, 2012|
PHILADELPHIA—Richard Perri, 40, of Philadelphia, was charged today by information with defrauding the Philadelphia Housing Authority of $431,848, announced United States Attorney Zane David Memeger.
He is charged with conspiracy and program fraud.
Perri was a materials coordinator for the PHA Maintenance Department between November 1998 and July 2008 and was responsible for overseeing purchases of materials for PHA property site maintenance projects.
Perri had access to all PHA property site budgets and had permission to order materials for those sites and to charge the purchases to PHA.
According to the information, Perri circumvented the PHA requisition process for purchases by ordering and receiving materials from PHA vendors and then submitting a requisition for payment after materials had been delivered and the vendor’s invoice had been received by Perri.
This change made the process for those purchases less subject to in-house PHA scrutiny.
Between 2002 and 2008, Perri allegedly purchased building materials, purportedly for use at PHA properties, and then sold the materials for profit to others who used the materials for non-PHA purposes.
It is further alleged that Perri submitted fraudulent requisitions to PHA which paid the vendors for materials that were supposed to be for use at PHA properties.
According to the information, Perri and Co-Conspirator 1 worked together, with Co-Conspirator 1 acting as a middle man, receiving payments for the fraudulently purchased materials and arranging for the materials to be picked up or delivered to private properties.
After receiving payments of approximately half the value of the materials, Co-Conspirator 1 and defendant Perri split the profits of the scam.
If convicted, the defendant faces a maximum possible sentence of 15 years in prison, mandatory restitution, and supervised release.
The case was investigated by the FBI, the Department of Housing and Urban Development Office of Inspector General, and Philadelphia District Attorney’s Office General and is being prosecuted by Assistant United States Attorney K.T. Newton.