PHILADELPHIA, PA — Felton Hayman, a 54-year-old from Wilmington, Delaware, has been sentenced to 12 months and a day in federal prison for defrauding the City of Philadelphia out of nearly $150,000. The sentencing, handed down on Monday by United States District Court Judge Mark A. Kearney, also includes three years of supervised release, a $10,000 fine, restitution of $149,000 to the city, forfeiture of $100,000, and a $300 special assessment.
In April, Hayman pleaded guilty to three counts of wire fraud, following an indictment from a federal grand jury in July 2023. The charges were rooted in a scheme that spanned from July 2014 to September 2018, during which Hayman exploited his relationship with a Philadelphia city councilmember to acquire three city-owned properties at below-market rates. He had pledged to develop affordable housing on these lots but had no intention of doing so.
Hayman’s fraudulent activities culminated in his construction company acquiring the properties on South Bucknell Street and Titan Street for $101,000. Mere weeks later, he sold the Titan Street properties for $115,000 each and attempted to sell the South Bucknell Street property for $150,000. This latter deal eventually fell through, but not before Hayman attempted further deception regarding the sale.
In total, Hayman made an illicit profit of at least $165,000, with the City of Philadelphia incurring a loss estimated at $149,000. “Felton Hayman got a steal of a deal on these lots because he promised to build affordable housing,” said U.S. Attorney Jacqueline C. Romero. “But his plan all along was to flip the properties for a quick and tidy profit — he advertised them for sale before even holding title! Hayman defrauded the City and people of Philadelphia, purely out of greed.”
FBI Special Agent Wayne A. Jacobs echoed these sentiments, stating, “Under false pretenses, this defendant sought and succeeded in buying properties from the City of Philadelphia and used the proceeds to line his own pockets. Today’s sentencing shows, we at the FBI and U.S. Attorney’s Office will pursue crimes of corruption that impact our city.”
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Mark Dubnoff.
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