Rochester Housing Authority secretary federally charged with defrauding charity of $87K

Brian Sharp | Democrat and Chronicle

Another Rochester Housing Authority official is facing multiple federal charges for allegedly defrauding the local nonprofit.

Janis White, 58, executive secretary to the RHA director and past board secretary for its offshoot Rochester Housing Charities, made her initial court appearance Monday.

White is accused of filing $87,000 in phony invoices with RHC on behalf of a company she controlled — and profiting roughly $48,700 from the schemes.

She is the third person charged with defrauding the charity, which exists to provide affordable housing and supportive services for older residents and people with disabilities. RHA said in a statement that she was immediately placed on administrative leave.

More: Feds file 28-count indictment on George Moses, former head of RHA

According to the U.S. Attorney's Office:

White controlled a business called HJJ Property Development, listed as a heating, ventilation and air conditioning maintenance business, through which she billed RHC for work never performed.

She either would bill RHC directly. Or, she would take the legitimate invoice from a contractor, replace it with a phony invoice from HJJ, making it appear HJJ was doing the work, increase the expense, and pay the contractor the originally billed amount with a cashier's check. The difference amounted to nearly $48,700.

From the indictment, it appeared she worked with one or more complicit RHC staffers.

The company was started by her stepfather, records show, who told investigators he planned to go into business with his son but had become ill shortly after forming the business, and that his son showed little interest of continuing.

It was not clear whether any work had been done by the company. However, company bank account records show the money was "used for car loans, an XM radio subscription, $15,460 in cash withdrawals, payments to White and the purchase of cashier's checks," the complaint reads.

White faces charges of wire fraud, conspiracy to commit wire fraud, tampering with documents, and falsifying records in a federal investigation. She allegedly fabricated or altered documents in the days and weeks after her stepfather received a grand jury subpoena for HJJ Property records.

RAW: Federal officials talk about charge against George Moses U.S. Attorney James P. Kennedy Jr. discusses the charge against Rochester Housing Authority Chairman George Moses.

Federal authorities previously charged RHA's one-time interim executive director and former City Council Vice President Adam McFadden along with former RHA board chairman and past RHC board member George Moses.

McFadden pleaded guilty to defrauding the housing charity of $134,000 and awaits sentencing. Moses is awaiting trial on a 28-count indictment. Moses is on leave as executive director for North East Area Development, where White is a past board president.

Monroe County Legislator Rachel Barnhart, D-Rochester, has called for the state Comptroller's Office to conduct an audit of RHC, NEAD and Group 14621 neighborhood association, which NEAD now controls.

BDSHARP@Gannett.com