On November 30, 2012, the US Attorney’s Office for the Eastern District of Pennsylvania announced that Richard Perri of Philadelphia was charged with defrauding the Philadelphia Housing Authority (PHA) of $431,848. He was the former materials coordinator for the PHA Maintenance Department from November 1998 to July 2008.
During his duties, he oversaw purchases of material for PHA properties and maintenance projects. He had permission by the PHA to order materials for sites, charge those purchases to the PHA, and access budgets for property sites.
According to court documents, Perri was able to avoid the requisition process required by PHA by ordering and receiving materials from vendors and then submitting the requisition for payments after the materials were delivered and he received the vendor’s invoice. The PHA was less likely to notice the fraud scheme through this method.
From 2002 to 2008, Perri bought materials that were supposed to be used for PHA properties but then sold the materials for profits to builders who weren’t working on PHA projects. During this time period, he submitted false requisitions to the PHA to make it appear the materials were going to PHA projects. Perri and another co-conspirator worked together to hide the payments and delivery of materials.
The co-conspirator worked as a middle man who received payments for the purchased materials and then picked up the materials and delivered them to non-PHA properties. Perri and the co-conspirator sold the materials for half of their actual value and split the profits.
Perri is subject to 15 years in prison if he is convicted. He will also receive supervised release and mandatory restitution.
The case was investigated by the FBI, HUD’s Office of Inspector General, and the Philadelphia District Attorney’s Office General. The case is being prosecuted by Assistant U.S. Attorney K.T. Newton.
Source: Federal Bureau of Investigation
