Pandemic Relief Fraud Alert: Lessons for Rental Owners in Oregon and Washington

In an unexpected turn of events, six people have been indicted on federal charges for making false claims for Seattle rental assistance funds. The group reportedly utilized falsified documents and pretended to be landlords to illegally apply for emergency rental assistance designed to stop tenant evictions, according to the U.S. Department of Justice.

The defendants allegedly stole over $2.7 million from the King County rental assistance program. This strategy was designed to take advantage of the emergency assistance for renters facing eviction. The accused also allegedly tried to defraud the unemployment systems in Washington, California, South Carolina, and Nevada.

The 26-count indictment was discussed by Nick Brown, U.S. Attorney for the Western District of Washington, who called the operation a “wide-ranging fraud scheme.” Phoenix resident Paradise Williams, 29, was held up as the plan’s mastermind. There were many arrests of the group members, including two in Phoenix, one in Houston, and three in Washington State.

Williams and her accomplices used the pandemic relief programs—intended to help small companies and others at risk of eviction—for their own gain. Brown noted that these dishonest actions took much-needed aid away from truly needy individuals.

Williams prepared fictitious paperwork and instructed her associates to pose as renters and landlords. According to reports, each dishonest landlord received sizeable fees totaling tens of thousands of dollars for each fictitious tenant application.

Williams was also accused of using at least 21 fake rental assistance applications to pose as the landlord to steal approximately $740,000 in emergency funding. It was discovered that neither Williams nor her companions were the tenants they had represented themselves as, nor did they own any rental properties.

Williams was not the only defendant the grand jury indicted.

• 32-year-old Seattle, Washington resident Rayvon Darnell Peterson
• 28-year-old Tia Janee Robinson, Fife, Washington
• 45-year-old Houston, Texas, resident Jahari Asad Cunningham
• 37-year-old D’arius Akim Jackson from Bonney Lake, Washington
• 32-year-old Pacific, Washington resident David Jesus Martinez

The defendants allegedly submitted at least 35 false applications for Economic Injury Disaster Loans (EIDL) between June 2020 and August 2021, requesting more than $3.7 million from the Small Business Administration (SBA). Due to the success of two of the applications, $30,000 in losses resulted. Williams allegedly tried to defraud the SBA’s Paycheck Protection Program (PPP) as well.

The money gained fraudulently is said to have been wasted on expensive holidays, trendy clothing, jewelry, and even plastic surgery. According to the indictment, if proven guilty of wire fraud, the culprits may receive up to 30 years in jail and a $1 million fine. A 20-year prison sentence may be imposed for money laundering.

The FBI is handling the matter with assistance from the Small Business Administration and the Office of the Inspector General. 

This incident serves as a sharp warning to all landlords to be on the lookout for such fraudulent operations in their homes or business dealings. We should all aim to have our tax dollars reach people who genuinely need it.