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Family members of former St. Clair Housing Commission director sentenced in fraud case

(CBS DETROIT) - Three family members of a former St. Clair Housing Commission executive director were sentenced to prison for their involvement in defrauding the U.S. Department of Housing and Urban Development Section 8 program.

According to the Justice Department, Lorena Loren's husband, Brian Loren, 61, was sentenced to nine months after he pleaded guilty to conspiring to commit federal program fraud of about $73,000.

Lorena Loren, who has since died, previously pleaded guilty and was sentenced to 37 months in prison for conspiring with several family members to take federal funds provided to the commission by HUD. Officials say she stole about $336,000, which included money from HUD's Section 8 program.

Federal officials say Brian Loren, who conspired with his wife and others, opened a joint bank account with another individual at a PNC Bank in Florida. Between August 2014 and August 2016 Section 8 rental subsidy payments were sent to the account.

Additionally, Lorena Loren's son, Ryan Loren, 36, and daughter-in-law, Kayla Loren, 33, were sentenced to 11 months in federal prison after pleading guilty to receiving unlawful compensation from HUD with intent to defraud. 

The couple admitted that between August 2008 and August 2016, they made false statements to HUD about where they lived to receive improper funds from the department. They also admitted to lying during their testimonies before the grand jury. They illegally received between $40,000 and $95,000, according to the Justice Department.

The three family members paid the remaining restitution of $99,835 owed to HUD as part of their plea agreements. Federal officials say a total of $336,340 in restitution was paid.

"HUD OIG is committed to protecting the integrity of Federal housing programs and bringing justice to those who abuse these programs for personal gain," Special Agent-in-Charge Machelle Jindra said in a press release. "We will continue to work with our law enforcement partners to investigate and hold accountable bad actors and protect the programs that HUD beneficiaries rely on."

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