A real estate developer and attorney pleaded guilty in connection to a $2.3 million fraud scheme involving the redevelopment of a Worcester multifamily property.
James E. Levin, 61, of Natick, pleaded guilty in Worcester federal court Monday to conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims, according to a statement from the U.S. attorney’s office. Levin had been charged in the case back in 2016.
Levin, who was the manager of 5 May Street Apartments LLC, applied for and obtained federal funds between July 2010 to September 2011 from the U.S. Department of Housing and Urban Development through the city of Worcester, according to the U.S. attorney’s statement. The funding was intended for the rehabilitation of a multifamily apartment building at 5 May St. in Worcester.
The city of Worcester distributes grant funds on behalf of HUD and Massachusetts Department of Housing and Community Development, and Levin submitted seven payment requests to the city for work he fraudulently claimed he completed on the building and associated costs, according to the statement.
Levin’s co-defendant, Jacklyn Sutcivni, who worked in the city of Worcester’s Housing Development Office, allegedly approved the payment requests submitted by Levin even though she knew the requests were fraudulent. The city of Worcester paid approximately $2.36 million to Levin, according to the U.S. attorney’s office. After the city issued the payment, Sutcivni or other city officials allegedly submitted reimbursement requests to HUD or DHCD for the funding.
Sutcivni has pleaded not guilty and has a trial scheduled on May 3. Levin’s sentencing is scheduled for Feb. 9.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of conspiracy to defraud the United States provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater.
The charge of submission of false claims provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The indictment also seeks monetary forfeiture in the amount of $2,365,050.
