Mohammad Shabazz Khan, Bourbannais, Illinois was indicted yesterday on four counts of making false claims to obtain federal mortgage assistance funds from the Troubled Asset Relief Program’s billion-dollar component Hardest Hit Fund (HHF), which was provided to Indiana’s housing finance agency to help unemployed and underemployed homeowners stay in their homes. The indictment alleges the defendant took assistance but did not live in his home.
Khan received $29,926.46 in mortgage assistance to which he was not entitled.
The Hardest Hit Fund was meant to help Indiana families stay in their homes in the aftermath of the 2008 economic crisis. The Hardest Hit Fund program in Indiana is administered by the Indiana Housing and Community Development Authority. In order to receive this mortgage assistance, an applicant was required to be an Indiana homeowner; own only one home; and reside in that home.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case was investigated by the U.S. Department of Treasury’s Office of Special Inspector General for the Troubled Asset Relief Program (SIGTARP). This case is being prosecuted by Assistant United States Attorney Molly Kelley. SIGTARP was created as an independent law enforcement agency to investigate fraud, waste, and abuse related to the TARP bailout. To date, SIGTARP investigations have resulted in the recovery of over $11.2 billion, 389 criminal convictions and 305 defendants sentenced to prison.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
United States Attorney Thomas L. Kirsch II, made the announcement.
“I commend the Office of the U.S. Attorney for the Northern District of Indiana for standing with SIGTARP to combat fraud against homeownership preservation programs,” said Christy Goldsmith Romero, Special Inspector General.
To report a suspected crime related to TARP, call SIGTARP’s Crime Tip Hotline: 1-877-SIG-2009 (1-877-744-2009). To receive alerts about reports, audits, media releases, and other SIGTARP news, sign up at www.SIGTARP.gov/pages/press.aspx. Follow SIGTARP on Twitter @SIGTARP.