A real estate developer and a former city of Worcester housing official were recently charged in U.S. District Court in Worcester in connection with a $2.3 million fraud scheme relating to the redevelopment of a multifamily property in Worcester.

James E. Levin, of Natick, a real estate developer and attorney, and Jacklyn M. Sutcivni, of Dracut, a former employee of the city of Worcester’s Housing Development Office and Executive Office of Economic Development, were indicted for conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims.

As alleged in court documents, from July 2010 to September 2011, Levin submitted fraudulent payment requests to the city of Worcester for funding from the federal Department of Housing and Urban Development (HUD) to reportedly rehabilitate a multiunit apartment building at 5 May St. in Worcester. As the manager of 5 May Street Apartments LLC, Levin applied for and obtained federal funding from HUD and the city of Worcester. Levin submitted seven payment requests to the city for work he fraudulently claimed he completed on the building and associated costs. Sutcivni approved the requests even though she allegedly was aware they were fraudulent. It is alleged that this caused the city of Worcester to pay Levin more than $2.3 million. After the city issued the payment, Sutcivni or other city officials submitted reimbursement requests to HUD for the funds. The indictment seeks the forfeiture of those payments.

Developer, Housing Official Face Charges For $2.3M Fraud Scheme

by Banker & Tradesman time to read: 1 min
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