Family of former St. Clair Housing Commission official admit to embezzling money from HUD

Three family members of a former St. Clair Housing Commission pleaded guilty Sept. 21 in U.S. District Court to several crimes for their involvement in embezzling money from a federal housing assistance program for low-income individuals.

Lorena Loren pleaded guilty in 2017 and was sentenced to prison for conspiring with family members to steal funds provided by the St. Clair Housing Commission by the U.S. Department of Housing and Urban Development to administer low-income housing programs in St. Clair County. She has since died, according to court records.

Loren stole approximately $336,000 in federal funds, including money earmarked for HUD’s Housing Choice Voucher program, also known as Section 8 housing, according to a joint statement from Machelle L. Jindra, special agent in charge of the U.S. Department of Housing and Urban Development; James Tarasca, special agent in charge, Federal Bureau of Investigation; and U.S. Attorney Dawn Ison.

The Section 8 program allows low-income families to lease privately owned rental properties with the assistance of HUD rental subsidies.

Brian Loren, Lorena Loren's 61-year-old husband, pleaded guilty to conspiring to commit federal program fraud, the statement said.

Brian Loren conspired with his wife and others to embezzle money from the St. Clair Housing Commission when he and another individual opened a joint bank account at a PNC Bank in Deland, Florida, the statement said. Between August 2014 and August 2016, fraudulent Section 8 rental subsidy payments were issued to the PNC Joint Account Holder to benefit Lorena Loren, Brian Loren, and the PNC Joint Account Holder. 

Ryan Loren, Lorena Loren's 35-year-old son, pleaded guilty to receiving unlawful compensation from HUD with the intent to defraud. He admitted that, from August 2008 through August 2016, he lied to HUD and to a federal grand jury regarding about where he lived in order to receive improper funds from HUD, receiving between $40,000 and $95,000, according to the release.

Kayla Loren, Ryan Loren's wife and Lorena Loren's 31-year-old daughter-in-law, also pleaded guilty to receiving unlawful compensation from HUD with the intent to defraud. She also lied to HUD and a grand jury about where she lived from August 2010 to August 2016, illegally receiving between $40,000 and $95,000, the statement said.

The Lorens paid $99,835 in restitution owed to HUD at the time of their guilty pleas, the release said. A total of $336,340 in restitution has been repaid to HUD as a result of the prosecutions of the Loren family.

“The HUD Section 8 program serves some of the neediest in our community, very low-income families, the elderly, and the disabled," Ison said. "We are committed to prosecuting public officials who steal from any federal program and anyone who assists public officials in depriving lawfully-entitled citizens of the vital assistance they need."

Brian Loren faces a maximum sentence of five years in prison and a fine of up to a $250,000 fine.  Ryan Loren and Kayla Loren each face a maximum of one year in prison and a fine of up to $100,000.  

Brian Loren is scheduled for a sentencing hearing at 9 a.m. Jan. 26, while Ryan and Kayla Loren are scheduled for sentencing hearing at 10 a.m. and 11 a.m. that same day before U.S. District Court Judge Mark Goldsmith.

The attorney for all three family members declined to comment.

The St. Clair Housing Commission did not immediately respond to a request for comment Monday afternoon.

The case was investigated by agents of U.S. Department of Housing and Urban Development-Office of Inspector General and the Federal Bureau of Investigation.

Contact Laura Fitzgerald at (810) 941-7072 or lfitzgeral@gannett.com.