A Wilmington, Delaware man has been sentenced to a year and a day in prison for defrauding the City of Philadelphia in a real estate scheme. Felton Hayman, 54, received the sentence after pleading guilty to three counts of wire fraud related to the purchase and intended sale of properties at significantly below-market rates, according to an announcement from United States Attorney Jacqueline C. Romero.
In addition to the prison term, Hayman is facing three years of supervised release, a $10,000 fine, $149,000 in restitution to the City, forfeiture of an additional $100,000, and, a $300 special assessment. These penalties aim to redress the fraudulent acquisition and subsequent sale of three Point Breeze properties intended for affordable housing development, as reported by the U.S. Attorney's Office.
The indictment, returned by a federal grand jury in July 2023, detailed Hayman's use of a friendship with a Philadelphia city councilmember to acquire the properties. The plots located at 1200 South Bucknell Street, and 2040 and 2046 Titan Streets, were promised to be used for affordable housing, a condition upon which the city agreed to the below-market sales. Hayman, however, had different plans—flipping the properties shortly after purchase to turn a personal profit.
"Felton Hayman got a steal of a deal on these lots because he promised to build affordable housing," U.S. Attorney Romero highlighted in a statement, as per the U.S. Department of Justice. Hayman's actions culminated in a profit of at least $165,000, while the estimated loss to the City amounted to nearly $149,000. The properties on Titan Street alone were sold for approximately $115,000 each, a stark contrast to their acquisition cost and their intended purpose for the community.
