Monday’s arrest of a Section 8 landlord is the fourth this year as part of a Section 8 fraud investigation that’s been ongoing for nearly two years.
Dan Tracy, 65, of Middletown, was arrested after a warrant for theft, a fifth-degree felony, was signed, said Middletown police Lt. Scott Reeve. Police say Tracy collected federal money from a vacant apartment.
Since the investigation began in early 2011, police said seven landlords have been arrested for allegedly defrauding the Section 8 program, which is through the U.S. Department of Housing and Urban Development. The HUD Inspector General is aiding the Middletown police in its investigation.
Tracy was arraigned in Middletown Municipal Court on Wednesday morning. A pretrial hearing is set for Oct. 31. Reeve said Tracy could face an additional charge allegedly providing a fraudulent lease in order to turn on city water for a tenant with a past due water bill (Section 8 guidelines say a voucher holder must pay all back utilities or they would be removed from the program).
Tracy deferred comment on Thursday to his attorney, Christopher Atkins, who could not be reached for comment.
In September 2011, five people — two landlords and three tenants — were arrested on felony-level theft charges.
The city is looking to reduce its number of Section 8 vouchers by 1,008 over the course of five years, according to a city corrective action plan approved by city council earlier this week. The plan, which addressed why the city is under the acceptable 95 percent threshold of issued vouchers, has been sent to HUD for consideration.
City officials are uncertain if HUD would accept this plan, but if it is accepted the number of vouchers would drop from 1,662 to 654.
Section 8 arrests in 2012
Here is who has been arrested this year in the ongoing Section 8 fraud investigation by the Middletown Division of Police:
Jerry Robinson, arrested April 2, charged with theft, a fifth-degree felony. His case is before the Butler County Common Pleas Court and recently filed a waiver for a speedy trial.
Silas Lewallen, arrested on June 14, charged with theft, a fifth-degree felony. He is scheduled to appear on Oct. 24 in the Butler County Common Pleas Court.
Arthur Baker, arrested on June 25, charged with theft, a fifth-degree felony. He pled guilty to theft in September and was sentenced to three years probation and 200 hours community service.
Dan Tracy, arrested on Oct. 15, charged with theft, a fifth-degree felony. He is scheduled to appear for a preliminary hearing in Middletown Municipal Court on Oct. 31.
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