Two Lenoir County women have pleaded guilty to mail fraud in a case the US Attorney’s Office describes as a $187,000 COVID fraud scheme. Each faces up to 30 years in prison and a $1 million fine when they are sentenced, according to a news release Monday.
Kendra Edmondson, 39, and Britteny Dryer, 35, each pleaded guilty to conspiracy to commit mail fraud. The two women “and others” defrauded the federal government by submitting fraudulent North Carolina Housing Opportunities and Prevention of Evictions loan applications for emergency rental assistance, according to the news release.
“As part of the scheme, the defendants and their associates submitted fictitious tenant lease agreements for multiple Lenoir County properties to support those applications,” according to the release.
“These two lowdown fraudsters chose to milk the system by lining their pockets while hardworking taxpayers rolled up their sleeves during the pandemic,” US Attorney Ellis Boyle said in the release. “Do what your parents taught you, don’t steal. Cheaters. Never. Win.”
Edmondson, Dryer, and others submitted 23 fraudulent applications between November 2020 and December 2021, according to the release. They collected more than $187,000 in federal government housing funds “for their personal benefit.”
The NC Hope program secured funding from the federal Coronavirus Aid, Relief, and Economic Security Act of March 2020. The CARES Act aimed “to provide emergency financial assistance to millions of Americans suffering economically from the Covid-19 pandemic,” according to the news release.
It authorized $5 billion in Community Development Block Grant programs and gave state and local governments flexibility “to prevent, prepare for, and respond to the pandemic,” the news release explained. The United States Department of Housing and Urban Development administers CDBG programs.
The North Carolina Office of Recovery and Resiliency used CARES Act money “to help North Carolina renters remain in their homes during COVID‑19 by preventing evictions and loss of utility services,” according to the release. NC HOPE used an initial $51.5 million in CDBG funds for housing and utility assistance. The CARES Act also provided Coronavirus Relief Fund money to North Carolina, including $66 million for NC HOPE’s administrative costs.
“This case reflects the strength of our partnerships with [the US Attorney’s Office and HUD’s inspector general] in fighting fraud, waste, and abuse that hurts our most vulnerable citizens,” state SBI Director Chip Hawley said in the news release.
Hawley also thanked US Marshals and the Kinston Police Department. “We will continue to aggressively target those who steal from hardworking taxpayers.”
