DiNapoli: Former West Carthage Housing Authority Executive Director Sentenced in Embezzlement Scheme; Over $48,000 in Restitution Recovered

August 7, 2024

Former West Carthage Housing Authority Executive Director Jan Hoffman was sentenced yesterday for a scheme that allowed her to steal over $48,000 in WCHA funds, New York State Comptroller Thomas P. DiNapoli, Jefferson County District Attorney Kristyna S. Mills, the U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD OIG) and the New York State Police announced. Hoffman was sentenced to serve five years' probation. The sentencing of Hoffman's mother, Katherine (Katie) Pais, who pleaded guilty to aiding in and concealing the scheme, was adjourned to June 2, 2025.

Following their June 3, 2024 guilty pleas and prior to sentencing, the pair paid back $48,930 in restitution to the West Carthage Housing Authority.

"Hoffman and Pais betrayed the public trust in their scheme to steal over $48,000 in funds meant to support seniors and people with disabilities residing in the West Carthage Housing Authority," DiNapoli said. "I thank Jefferson County District Attorney Kristyna S. Mills, the HUD Inspector General, and the State Police for partnering with my office to hold them accountable for their crimes."

"The defendants took advantage of their position and violated the public trust by defrauding HUD-assisted housing programs of scarce taxpayer dollars intended to provide housing to individuals and seniors with disabilities," said Special Agent-in-Charge Vicky Vazquez with the U.S. Department of Housing and Urban Development, Office of Inspector General. "Today's sentencing demonstrates HUD OIG's steadfast commitment to working with our prosecutorial, law enforcement and oversight partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs."

New York State Police Superintendent Steven G. James said, "This sentencing should serve as a reminder that those who manipulate innocent victims will be brought to justice. Our joint investigation determined that the suspects in this case violated the public trust by circumventing financial accounts intended to fund safe housing for individuals. I thank the Comptroller's Office, Jefferson County District Attorney's Office, U.S. Department of Housing and Urban Development and Office of the Inspector General for their partnership in this case."

Hoffman served as the executive director of the West Carthage Housing Authority, a government-funded apartment complex for low-income senior citizens and people with disabilities, from 2016 to 2021. Pais, Hoffman's mother, was hired as a vendor to act as an accounts payable bookkeeper at the housing authority from 2016 to 2020.

Based upon an anonymous tip, DiNapoli's Office and the HUD OIG commenced an investigation of all monies controlled by Hoffman and found that she had been making personal purchases with housing authority funds since 2016, her entire tenure as executive director. In total, Hoffman stole over $48,000 from the authority using its financial accounts and credit lines to pay unauthorized personal expenses, including retail and grocery purchases, and to fund her and her family's personal cell phone expenses. She also submitted over $1,000 in additional false reimbursement claims.

Through her role as the accounts payable bookkeeper, Pais was responsible for reviewing claims and preparing checks for payment. Pais abused her position in order to facilitate her daughter's theft by making the illicit payments and then falsifying authority records to conceal her daughter's crimes.

Hoffman was sentenced before Judge David Renzi in Jefferson County Court.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by filing a complaint online at https://www.osc.ny.gov/investigations, or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.