In Quincy, a landlord's dealings have come to an expensive conclusion as he agrees to a settlement for violating the False Claims Act. Mario Bianco, a 79-year-old landlord, was caught unfairly increasing the rent of a low-income tenant who was part of a federal housing subsidy program. Bianco's settlement, amounting to $15,200, is a result of his demands for side payments that exceeded the monthly rent stipulated by the program, according to a statement from the Department of Justice.
This case revolves around the Section 8 program, known officially as the Federal Housing Choice Voucher Program. This program aims to assist low-income families to find and maintain affordable and safe housing. Landlords, in participating in this program, agree to not charge rent beyond the limits set by local public housing agencies. Bianco, however, shattered this agreement by demanding and receiving rent that went over this limit. His actions eventually led to a whistleblower lawsuit, which has since been settled.
Acting United States Attorney Joshua S. Levy discussed the importance of the Section 8 program, stating, "The Section 8 program provides critical assistance to families in need of safe and affordable housing." He added, "We will vigorously defend the integrity of the Section 8 program against landlords that seek to take advantage of members of our community for their own financial gain," as mentioned by the Department of Justice. Levy encourages any other Section 8 tenants experiencing similar violations to report to his office.
HUD Inspector General Rae Oliver Davis expressed her disapproval of Bianco's actions, emphasizing the detrimental impact on vulnerable families and the program at large: "Mr. Bianco preyed on the vulnerability of a low-income household by demanding rent payments in excess of the agreed upon amount by HUD from a tenant participating in HUD’s Housing Choice Voucher Program," Davis said. "This type of financial fraud scheme takes valuable dollars out of the pockets of low-income households and reduces the number of families that HUD’s assisted housing programs can serve," as noted in the same press release. As part of the settlement agreement, Bianco is required to pay the U.S. a total of $15,200, with the whistleblower also receiving a portion of that recovery.
The False Claims Act notably allows individuals who know of fraud against the government to file lawsuits on its behalf and possibly share in the financial recovery. The settlement reached in this case was handled by Assistant U.S. Attorney Diane Seol of the Affirmative Civil Enforcement Unit, as announced by Levy and Davis. Bianco's agreement to the settlement marks another step in government efforts to protect the integrity of housing assistance programs and ensure that low-income families can live without the burden of illegal rent hikes.
