Arrest Sanit Employee Who Lied About Job To Get Rent Break

The Department of Investigation Aug. 13 arrested a Sanitation Department employee because he allegedly lied about where he worked and told Federal housing officials he made less than a third of his actual city salary in order to collect approximately $12,000 in subsidies.

ROSE GILL HEARN: Cross-checking lists.

Federal prosecutors charged Rafael Rosario with fraudulently obtaining subsidies from the U.S. Department of Housing and Urban Development between May 2006 and December 2007. The Section 8 Rental Assistance Program is for helping low-income individuals to afford housing in the private market. A housing subsidy is paid each month directly to the landlord on behalf of the participating individual, who pays the balance of the rent owed.

Falsified Employment

DOI obtained a list of all city employees who were both enrolled in the Section 8 program and lived in Housing Development Corporation residences funded by HUD. Investigators from DOI compared the income of city employees reported to the HDC to qualify for Section 8 subsidies with the employees' real income according to city payrolls.

During 2006 and 2007, Mr. Rosario, a Bronx resident, reported he worked for FedEx, earning only $7,800 annually. City payrolls show he actually earned between $26,000 and $33,000 working for the Department of Sanitation at that time, according to DOI. In fact, FedEx never employed him, the agency said.

"Today's arrest follows a similar arrest DOI made in June and underscores our commitment to rooting out Section 8 housing fraud and protecting these valuable resources," City Investigation Commissioner Rose Gill Hearn said, "City employees who intentionally conceal income in order to collect higher rent subsidies are committing a crime and they will be apprehended."

The U.S. Attorney for the Southern District of New York, Michael J. Garcia, is prosecuting this case.

Mr. Rosario, a two-year veteran, has not been suspended, but disciplinary action may be taken pending the outcome of his trial.

In June, DOI arrested a Department of Education Teacher for misrepresenting her income to collect approximately $27,000 in Section 8 housing subsidies.