A Worcester resident originally from the Dominican Republic has been indicted for allegedly using stolen identities, including that of a deceased person, to fraudulently obtain $137,100 in emergency rental assistance funds. The funds were meant to help people who could not pay rent due to financial hardship during the COVID-19 pandemic.
Felix Mercedes-Castillo, 35, faces five counts of theft of government money and three counts of aggravated identity theft. He is currently serving a state prison sentence for unrelated crimes and will appear in federal court at a later date.
The Emergency Rental Assistance Program (ERAP) was established by Congress in 2021 to provide financial support to low-income households affected by the pandemic.
Court records indicate that between October 2021 and August 2022, Mercedes-Castillo allegedly submitted fraudulent ERAP applications using other people’s identities. According to prosecutors, he claimed these individuals were landlords or tenants needing rental assistance when they were neither. Some applications included copies of social security cards as supporting documents.
One application falsely listed a person who had died more than a year earlier as a landlord owed rent. As alleged in the indictment, checks issued as a result of these false claims were mailed out and collected by Mercedes-Castillo.
If convicted on the theft charges, Mercedes-Castillo faces up to ten years in prison per count and fines up to $250,000 or twice the amount gained or lost. The aggravated identity theft charge carries a mandatory two-year sentence consecutive to any other penalty imposed. Sentencing decisions are made by federal judges based on guidelines and statutes.
United States Attorney Leah B. Foley stated: “United States Attorney Leah B. Foley; Ted E. Docks, Special Agent in Charge, Federal Bureau of Investigation, Boston Division; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Massachusetts Inspector General Jeffrey S. Shapiro made the announcement.” Assistant U.S. Attorney Brendan D. O’Shea is handling the prosecution.
The Department of Justice set up the COVID-19 Fraud Enforcement Task Force on May 17, 2021 to coordinate efforts against pandemic-related fraud across government agencies and share investigative resources (https://www.justice.gov/coronavirus). More information about anti-fraud initiatives can be found at https://www.justice.gov/coronavirus/combatingfraud.
People with information about attempted COVID-19 fraud are encouraged to report it through an online form at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
It should be noted that all details described are allegations; Mercedes-Castillo is presumed innocent unless proven guilty beyond reasonable doubt.