FOR IMMEDIATE RELEASE
Thursday, December 06, 2007
MICHELE VERRALL SENTENCED IN U.S. DISTRICT COURT
Bill Mercer, United States Attorney for the District of Montana, announced today that during a federal court session in Missoula, on December 6, 2007, before Chief U.S. District Judge Donald W. Molloy, MICHELE VERRALL, a 44-year-old resident of Butte, appeared for sentencing. VERRALL was sentenced to a term of:
- Probation: 1 year
- Special Assessment: $100
- Restitution: $28,286
- Community Service: 100 hours
VERRALL was sentenced in connection with her guilty plea to making false statements.
In an Offer of Proof filed by the United States, the government stated it would have proved at trial the following:
On November 17, 1998, VERRALL began receiving rental assistance from the Public Housing Authority of Butte (PHAB). VERRALL resided at a residence in Butte. When VERRALL applied for rental assistance from PHAB, she was required to report the income of all adults living in the home so PHAB could determine the appropriate amount of rent due for the PHAB residence. VERRALL reported that she was residing at the location with her three sons.
In April of 2006, the Office of Inspector General for the Office of Investigation with the U.S. Department of Housing and Urban Development in Billings was notified that VERRALL was concealing the fact that her husband was also residing in a public housing unit located in Butte.
On April 10, 2006, the PHAB notified the Office of the Inspector General
VERRALL'S husband did in fact reside in the unit, program guidelines would require VERRALL to report his income to the PHAB, and consequently 30% of the family's total income would be required to be paid as their rent.
PHAB was alerted to the fact that VERRALL'S husband was living in the unit
VERRALL'S husband had filed a lawsuit regarding a work-related injury and reported in a deposition that he lived with his wife in the PHAB unit and had for the entire time VERRALL was receiving rental subsidies.
At trial, deposition transcripts of both VERRALL and her husband would have been
PHAB unit since March of 1999.
VERRALL never notified PHAB that her husband was living in the home nor
November 1998 and May 2006. All of the annual re-certifications she signed clearly stated that failing to provide all necessary information or false statements was a violation of state and federal law.
During the course of the investigation, it was discovered that VERRALL
Employer Income Verification Form. The Employer Income Verification Form was another document the PHAB used to determine the amount of rent VERRALL paid for her unit.
During the course of the investigation, it was also discovered that VERRALL failed to disclose to the PHAB her involvement, and related income, in a cleaning business she owned with her sister-in-law.
VERRALL provided a signed confession in which she admitted she failed
PHAB unit and that she under reported her income to the PHAB, despite being notified that such conduct was a violation of state and federal law.
Based on the earnings information provided by the Montana Department
Labor and Industry, and on VERRALL'S confession, it was determined that VERRALL received $26,286 in additional PHAB benefits as a result of her false statements.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VERRALL will likely serve all of the time imposed by the court. In the federal system, VERRALL does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Assistant U.S. Attorney Jessica T. Fehr prosecuted the case for the United States.
The investigation was conducted by the Office of Inspector General for the Office of Investigation for the U.S. Department of Housing and Urban Development.
