PHILADELPHIA, PA — Local property owner David Krmpotich will pay $90,458 to settle government allegations of violating the False Claims Act. The United States Attorney’s Office accuses Krmpotich of overcharging a low-income tenant under the Housing Choice Voucher Program, also known as Section 8.
According to the government, Krmpotich was allowed to charge rent based on an agreement with the tenant and the public housing agency responsible for the rent subsidy. Krmpotich was prohibited from charging the tenant more than an agreed-upon portion of the total rent. Despite this, Krmpotich allegedly demanded additional monthly payments ranging from $125 to $185, beyond what was allowed.
United States Attorney Jacqueline C. Romero emphasized the importance of accountability, stating, “The conduct alleged here is an affront to the integrity of the Housing Choice Voucher Program and to taxpayers who fund it.”
Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development, Office of Inspector General, affirmed their commitment to protecting HUD beneficiaries from fraudulent activities.
The case came to light through a whistleblower, who will receive $16,282 of the settlement amount. Assistant United States Attorney Joel M. Sweet, Investigator Jeffrey Braun, and investigators from HUD OIG led the government’s investigation.
It should be noted that the claims against Krmpotich are allegations, and there has been no determination of liability.