Former homeless shelter head Manuel Duran pleads guilty to fraud

BOSTON -- Manuel Duran, the former head of a homeless shelter who stole money from the state-supported Casa Nueva Vida shelters and lied under oath, was sentenced to one year in prison on Thursday. 

14 homeless shelters in Lawrence and Boston were forced to shut down earlier this year because of their connection to this case, leaving many people with nowhere to go.

On Thursday, the 70-year-old Duran pleaded guilty to charges that he stole $1.5 million by secretly renting properties he owned to the shelter at above-market rates. Investigators said he then faked paperwork to hide the rentals.

Because of that alleged fraud, the state decided to pull funding from "Casa Nueva Vida" and to not renew the $7 million contract, which funded all of their locations. 

Following his year in prison, Duran will be on probation for four years, with the conditions that he completes 250 hours of community service.

Duran was also ordered to pay restitution with the amount to be determined at a hearing at a later date in December.