The former executive director of a New Mexico Housing Authority and her husband each pleaded guilty to one count of conspiracy charges to commit theft from programs receiving federal funds and theft of government property.
According to a 49-count indictment, between November 2003 and December 2011, Carmella and Paul Martinez stole federal funds provided by the Department of Housing and Urban Development to the Taos County Housing Authority, which offers affordable housing for low-income Americans.
While this scam was occurring, Carmella was employed by the TCHA, initially as a financial specialist and later as its executive director. She was responsible for processing housing assistance payment checks to approved Section 8 property owners and landlords. Martinez also provided preliminary approval of requests for rent subsidies to these beneficiaries.
However, Martinez abused her position with TCHA by stealing the money by issuing fraudulent HAP checks for Section 8 housing assistance to payees, including Paul Martinez and to bank accounts held by the couple. The conspirators then presented these checks for payment at various locations.
In both plea agreements, Carmella and Paul admitted to participating in this scam, acknowledging that at least $786,000 in federal funds was stolen. The TCHA receives approximately $2.8 million in funds from HUD annually to operate the Section 8 program on behalf of the federal agency.
At their sentencing hearings, which have not yet been scheduled, the Martinez’s each face a maximum penalty of five years in prison and a $250,000 fine. Under the terms of their plea agreements, the couple is required to pay $786,000 in restitution to the victims of their criminal activities.
