Jury: Lexington landlord got rental aid from city but didn’t use it to help tenants
A Lexington landlord who filed fraudulent applications for rental assistance from the city has been convicted in federal court.
A jury in Lexington convicted Vonnie McDaniels, 35, on charges of wire fraud, money laundering and aggravated identity theft.
Jurors also ruled he committed the offenses while still under court supervision on a prior conviction for bank fraud and identity theft, according to the court record.
Federal authorities charged that McDaniels submitted false information, including a false Internal Revenue Service form, on applications for money under programs Congress approved to help businesses with the financial impact of the COVID-19 pandemic.
McDaniels received a total of of $193,231 in relief money under the programs in 2020, according to the U.S. Department of Justice.
He also filed false applications for rental assistance from the city for two apartments on Hollow Creek Road in Lexington, according to the release.
The city had received money from the federal government to help pay rent for people who lost jobs or had their hours cut because of the pandemic.
McDaniels inflated the amount of rent to pump up the claim and posed as his tenants to fill out their portion of the application, without their knowledge, according to authorities.
McDaniels received $45,000 from the city in 2021 for rent assistance, but told his tenants they weren’t eligible and continued charging them rent, according to the Justice Department release.
Jurors convicted him on all charges on Sept. 25.
Chief U.S. District Judge Danny C. Reeves ordered McDaniels taken into custody after the verdict.
McDaniels is scheduled to be sentenced in January. He faces up to 20 years in prison on the fraud charges.
