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A former employee of Worcester’s Housing Development Office and Executive Office of Economic Development will serve more than three years in prison for her role in a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
Jacklyn M. Sutcivni, 48, of Dracut, was sentenced in Worcester federal court on Monday to 40 months in prison and three years of supervised release, according to a statement from the U.S. attorney’s office. Sutcivni will also have to pay restitution in an amount that has not yet been determined.
Sutcivni had been convicted by a federal jury in August of conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims, the statement said. She had been indicted in 2016 along with James E. Levin, a Natick real estate developer and attorney, who was sentenced last year to 37 months in prison and three years of supervised release. He was also ordered to pay forfeiture in the amount of $1.955 million.
The fraud scheme involved grant funds that the city of Worcester distributes on behalf of the U.S. Department of Housing and Urban Development (HUD) and the Massachusetts Department of Housing and Community Development (DHCD). As part of her job in Worcester’s Housing Development Office, Sutcivni was responsible for reviewing payment requests for HUD grant funds.
According to the U.S. attorney’s statement, Sutcivni approved seven fraudulent HUD grant funding requests submitted by Levin for work he falsely claimed to have completed on a building he managed and associated costs. Sutcivni approved the payment requests despite knowing they were fraudulent, the statement said.
The city of Worcester issued approximately $2,365,050 in federal funds to Levin that he was not entitled to. Sutcivni or other city officials then submitted reimbursement requests to HUD or DHCD for HUD funds.
“This fraud is not a victimless crime – the Worcester community and its families deserve and are entitled to city employees that do their jobs with integrity,” U.S. Attorney Rachael S. Rollins said in the statement. “Jacklyn Sutcivni repeatedly chose to dishonor her public office and the good people of Worcester who placed their trust in her. Today’s sentence reinforces our steady resolve to investigate public officials who abuse their positions and hold them accountable for breaching the public’s trust.”
The amount of restitution that Sutcvini must pay will be determined at a hearing on May 19.
