On June 4, 2024, New York State Comptroller Thomas P. DiNapoli, Jefferson County District Attorney Kristyna S. Mills, the U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD OIG), and the New York State Police announced the guilty pleas of former West Carthage Housing Authority (WCHA) Executive Director Jan Hoffman for stealing over $48,000 in WCHA funds, and Katherine (Katie) Pais, Hoffman’s mother and former WCHA consultant, for aiding in and concealing the scheme.
“Hoffman and
Pais brazenly diverted funds meant to support seniors and individuals with
disabilities to line their own pockets,” DiNapoli said. “Thanks to the partnership between
my office, Jefferson County District Attorney Kristyna S. Mills, the HUD
Inspector General, and the New York State Police, they have been held accountable for
their actions.”
“The fraud
committed by the defendants diverted critical taxpayer money that was intended
to benefit elderly and-low-income families in our communities," said Special Agent-in-Charge Vicky Vazquez with
the U.S. Department of Housing and Urban Development, Office of Inspector
General. “HUD OIG remains steadfast in its commitment to working with our
prosecutorial, law enforcement and oversight partners to aggressively pursue
those who engage in activities that threaten the integrity of HUD programs.”
New
York State Police Superintendent Steven G. James said, “The
individuals charged in this case stole funds from unsuspecting citizens, using
the money for their own personal benefit. We will not tolerate the conduct of
those who take advantage of their position to steal money that was meant to
benefit people in need. I commend everyone who worked on this case – our
members and all our partners – who have now ensured that the two people
responsible for this crime are held fully accountable.”
Hoffman served
as the executive director of WCHA, a government-funded apartment complex for
low-income senior citizens and individuals with disabilities, from 2016 to
2021. Pais, Hoffman’s mother, was hired by the WCHA board and served as
accounts payable bookkeeper from 2016 to 2020.
Based upon an
anonymous tip, Comptroller DiNapoli’s Office and the HUD OIG commenced an
investigation of all monies controlled by Hoffman and found that she had been
making personal purchases with housing authority funds since 2016, her entire
tenure as executive director. In total, Hoffman stole over $48,000 from WCHA by
using WCHA’s financial accounts and credit lines for unauthorized personal
expenses including retail purchases, personal cell phone bills, and groceries.
Additionally, Hoffman submitted over $1,000 in false reimbursements.
Through her
role as the accounts payable bookkeeper, Pais facilitated and concealed
Hoffman’s theft. Pais was responsible for reviewing claims and preparing checks
for payment. Pais not only knew about Hoffman’s continuous theft and failed to
report it to the board, but also made the illicit payments and then falsified
records to cover for her daughter.
Hoffman pled
to Grand Larceny in the Third Degree, charged as a crime of public corruption
and Pais pled to Corrupting the Government in the Fourth Degree before Judge
David A. Renzi at Jefferson County Court. The defendants are due back in court
for sentencing on
###
Since taking
office in 2007, DiNapoli has committed to fighting public corruption and
encourages the public to help fight fraud and abuse. New Yorkers can report
allegations of fraud involving taxpayer money by calling the toll-free Fraud
Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations,
or by mailing a complaint to: Office of the State Comptroller, Division of
Investigations, 8th Floor, 110 State St., Albany, NY 12236.