LANCASTER, PA — Two principal culprits embroiled in a substantial fraud case related to the COVID-19 pandemic have admitted guilt in Lancaster County Court. The case, brought by the Lancaster County District Attorney’s Office and Office of State Inspector General (OSIG), involves the illegal appropriation of funds intended to help those experiencing financial hardship due to the virus.
Brandice Reyes-Alvarez, a Leola resident, pleaded guilty Wednesday morning to a host of charges including theft by deception, criminal conspiracy, and forgery. Condemned by Lancaster County Judge Dennis Reinaker, she will serve a prison term of up to nearly two years, be on probation for two years, and serve eight months under house arrest. Reparation of $9,070.37 will also be required.
Reyes-Alvarez, formerly employed by the Lancaster County Housing and Redevelopment Authorities (LCHRA), orchestrated a scheme with 15 co-defendants to submit deceptive applications for rental assistance through the Emergency Rental Assistance Program (ERAP). The ERAP, administered by LCHRA, provides rental assistance to tenants struggling financially because of the pandemic.
Assistant District Attorney Mark Fetterman accused Reyes-Alvarez of “defunding the federal government” and betraying the taxpayers of Lancaster County through her manipulation of the ERAP program. The illicit operation also benefited Reyes-Alvarez financially, with alleged ‘kickbacks’ from the other defendants.
Adelina White, another Lancaster local, faces similar charges and pleaded guilty alongside Reyes-Alvarez. Judge Reinaker sentenced White to four years of probation, including a first year of house arrest. Playing an active role in the scheme, White used deceptive tactics like impersonating a landlord and creating false email accounts to facilitate the fraud.
Both Reyes-Alvarez and White are among 16 defendants charged in this large-scale plot to exploit the ERAP for personal gain.
The relief fund was initiated in March 2021 and is supported by the U.S. Department of Treasury and the Commonwealth of Pennsylvania’s Department of Human Services. However, an internal investigation flagged suspicious payments to an employee last June, launching an inquiry that revealed fraudulent activities.
The culprits involved used a series of fraudulent strategies to claim the relief funds, including providing incorrect phone numbers and landlord details, and forging documents like lease agreements and past due rent statements. In several instances, the scam resulted in payments being made directly to tenants. Investigators found that a portion of the ill-gotten funds was later sent to Reyes-Alvarez and other co-accused involved in the operation.
The fraud, which occurred between June 2021 and August 2022, resulted in total losses topping $281,000. Following the discovery of these illicit activities, LCHRA has implemented changes to its processes to flag potential fraud and no longer accepts electronic applications. The ERAP continues to operate but is now focused solely on preventing evictions.
Of the 16 defendants, 11 have pleaded guilty and received their sentences. The remaining five defendants’ cases are active, and they are presumed innocent until proven guilty.
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