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Alabama Woman Sentenced to Prison After Admitting to Stealing Rent Money from Low-Income Tenants

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Disclosure: State of Alabama-based writer. This article is a work from cited sources for informational purposes and is used with permission. No affiliate links are included.

On January 10, Shannon Caruso, a 48-year-old woman from Alabama, was sentenced to 14 months in federal prison after pleading guilty to stealing rent payments meant for government-assisted low-income housing. Caruso, who worked as a property manager for two separate government housing authorities providing affordable housing to low-income individuals, used her position to defraud renters in the area.

Shannon CarusoPhoto byMCPD

According to court documents, Caruso manipulated renters into making rent checks payable directly to her or left the payee line blank. Instead of depositing the rent money with the housing authorities, Caruso pocketed it for her own use. Despite the theft, the two housing authorities absorbed the losses and chose not to evict tenants who believed they were paying their rent properly.

In a hearing, U.S. District Court Judge Terry F. Moorer condemned Caruso’s actions, emphasizing the significant harm her theft caused to vulnerable people already facing financial difficulties. “The selfishness of her crimes likely affected innocent individuals who were already in a tough financial situation,” Judge Moorer stated. Caruso was sentenced to 14 months in federal prison, the maximum length recommended by her advisory sentencing guidelines.

Special Agent-in-Charge Jerome Winkle with the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) also spoke out about the case: “Shannon Caruso admitted to using her position as a property manager to exploit the vulnerability of elderly and low-income individuals by stealing their monthly Housing Choice Voucher rent payments and depositing them into her personal bank account. HUD OIG will continue to work with its law enforcement partners to diligently pursue and hold accountable individuals who prey on vulnerable members of our community.”

United States Attorney for the Southern District of Alabama, Sean P. Costello, echoed these sentiments, calling Caruso’s crime particularly egregious. “Stealing the rent money of vulnerable victims was a particularly egregious way for this crook to earn her sentence in federal prison. Together with our law enforcement partners, we will hold to account anyone who takes advantage of the citizens of South Alabama.”

How could she ever think it wouldn't be found out?

Our housing authority is similarly going through scrutiny. It was the tenants who brought things up initially, as the housing authority buildings were in deplorable shape. Mushrooms growing in carpet and such. Last year ( maybe more,) housing authority ran out of money for rent assistance in June. It was found out that HA went on a hiring spree and took funds slated for rent assistance to pay wages. Hmmm… wonder if the hires met some sort of quota?

My elderly tenant was having trouble making rent, was denied assistance in October , and I was informed the funds ran out in June. A recent ( this week, or maybe last) investigative news clip on several different affiliate channels stated funds were used incorrectly for wages. The long-time HA top person recently resigned. New person says they are cleaning up. Hopefully.