Quincy Landlord Agrees to $15,200 Settlement for False Claims Act Violations

BOSTON - A Quincy landlord has agreed to a settlement for a False Claims Act violation.

Mario Bianco, 79, of Quincy has agreed to pay a $15,200 settlement for submitting false claims to the government after receiving side payments in excess of approved monthly rent from a low-income tenant participating in a federal housing subsidy program.

The Federal Housing Choice Voucher Program, commonly referred to as "Section 8," provides federal funding to low-income individuals to help them secure safe and affordable housing. The Department of Housing and Urban Development (HUD) provides this funding through local public housing agencies, which establish the total monthly rent due to landlords of Section 8 tenants. HUD pays the housing subsidy directly to landlords. In return, landlords agree to comply with certain program requirements, including that they will not charge Section 8 tenants rent exceeding the amount set by the public housing agency.

Despite this restriction, Bianco demanded and received side rent payments from a Section 8 tenant, who brought a lawsuit against Bianco under the whistleblower provisions of the False Claims Act. As part of today's settlement, Bianco admits to demanding and receiving side payments from the Section 8 tenant in violation of his agreements with HUD.

"The Section 8 program provides critical assistance to families in need of safe and affordable housing," said Acting United States Attorney Joshua S. Levy. "We will vigorously defend the integrity of the Section 8 program against landlords that seek to take advantage of members of our community for their own financial gain. We encourage any Section 8 tenants who have been forced to pay excess rent in violation of the terms of their leases to bring their concerns to our Office's attention."

"Mr. Bianco preyed on the vulnerability of a low-income household by demanding rent payments in excess of the agreed upon amount by HUD from a tenant participating in HUD's Housing Choice Voucher Program," said Inspector General Rae Oliver Davis. "This type of financial fraud scheme takes valuable dollars out of the pockets of low-income households and reduces the number of families that HUD's assisted housing programs can serve. Our office will continue to pursue these matters with the United States Attorney's Office to bring justice to those victimized by these schemes and to promote safe, affordable housing."

The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government. The settlement agreement requires the defendant to pay $15,200 to the United States, and the whistleblower will share in that recovery.

Acting United States Attorney Levy and Inspector General Rae Oliver Davis made the announcement today. Assistant U.S. Attorney Diane Seol of the Affirmative Civil Enforcement Unit handled the matter.