Former Employee in Low-Income Housing in Southern District of Alabama Sentenced for Embezzling Rent Funds

A Mobile woman has been sentenced to 14 months in federal prison for stealing rent money for government-assisted low-income housing.

Shannon Caruso, a 48-year-old Mobile resident, worked as a property manager for two government housing authorities that offered affordable housing to low-income individuals in the Mobile area, as per court documents. Caruso has confessed to deceiving tenants into making rent checks payable to her or leaving the payee line blank on their rent checks. Instead of depositing the rental funds with her employer, Caruso misappropriated the money for personal use. The two housing authorities had to absorb the losses resulting from Caruso’s theft, but they chose not to evict any tenants who had genuinely believed they were paying rent correctly by handing their checks to Caruso.

U.S. District Court Judge Terry F. Moorer expressed his disapproval of Caruso’s selfish crimes and highlighted the negative impact they had on innocent individuals who were already struggling financially. As a result, Judge Moorer handed down a 14-month prison sentence to Caruso, which was the maximum penalty within the recommended sentencing guidelines.

“Exploiting the vulnerability of elderly and low-income individuals, Shannon Caruso, a property manager, confessed to using her position for personal gain. She would divert their monthly Housing Choice Voucher rent payments and deposit them into her personal bank account,” stated Special Agent-in-Charge Jerome Winkle from the U.S. Department of Housing and Urban Development, Office of Inspector General. He emphasized that the HUD OIG will persistently collaborate with law enforcement agencies to ensure that those who prey on vulnerable members of our community are brought to justice.”

“Taking advantage of the citizens of south Alabama by stealing their rent money is an especially despicable act that led to the conviction and subsequent sentencing of this criminal to federal prison,” stated Sean P. Costello, United States Attorney for the Southern District of Alabama. He further emphasized, “We, along with our law enforcement partners, are committed to ensuring that anyone who preys on vulnerable victims in our community is held accountable.”

The case was investigated by the Birmingham Office of the U.S. Department of Housing and Urban Development, Office of Inspector General.

The case was prosecuted by Assistant U.S. Attorney Tandice Blackwood, representing the United States.

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