A Nashville resident, Joe Lewis Jefferson, has been sentenced to four years in prison for his involvement in a scheme to fraudulently obtain emergency rental assistance funds meant for households impacted by the COVID-19 pandemic. The 50-year-old pled guilty on August 12, 2024, to charges of conspiracy to commit mail fraud and failure to file a tax return. In addition to his prison sentence, Jefferson faces three years of supervised release and must pay $323,824 in restitution to the U.S. Department of Treasury.
Court documents revealed that Jefferson recruited individuals to impersonate landlords of properties in Eastern North Carolina. He then prepared and submitted fraudulent applications for the North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) program under these false identities. Once approved, checks were sent to addresses controlled by Jefferson. He would accompany these fake landlords to banks where they cashed the checks and divided the proceeds. This operation led to at least 44 fraudulent applications being submitted, resulting in approximately $279,000 being disbursed.
The NC HOPE Program was designed to distribute federal COVID-19 relief funds as emergency rental assistance for renters in North Carolina facing eviction or homelessness during the pandemic. Approved applicants could receive up to 15 months' worth of rent payments directly sent to their landlords.
The sentencing was announced by Michael F. Easley Jr., U.S. Attorney for the Eastern District of North Carolina, following proceedings overseen by U.S. District Judge James C. Dever III. The investigation involved IRS-Criminal Investigation and the U.S. Postal Inspection Service, with Assistant U.S. Attorney Toby Lathan prosecuting.
Further details about this case can be accessed through the website of the U.S. District Court for the Eastern District of North Carolina or via PACER using Case No. 7:22-CR-00068-D.