SPOKANE – A lawsuit has been filed in federal district court against All Star Property Management alleging the company fraudulently claimed hundreds of thousands of dollars in assistance intended to benefit struggling renters during the COVID-19 shutdowns.
During the COVID-19 pandemic, Congress established an Emergency Rent Assistance program to provide funds through local and tribal governments to benefit struggling renters who had fallen behind on rent due to unemployment or other hardship.
In Washington, the program was known as the Treasury Rent Assistance Program.
Under the program, landlords or property management companies could apply for federal funding for a tenant’s past due and projected unpaid rent. As a material condition of receiving federal funds, landlords were required to certify that the information, including the rent amounts, were truthful and accurate.
Landlords were further required to apply any funds received for a particular tenant to that tenant’s balance.
All Star, owned by defendant Gieve Parker, managed rental properties on behalf of landlords, including several properties owned by Arlin Jordin, court records show.
According to the lawsuit, Jordin was serving a prison sentence at the Coyote Ridge Corrections Center in Connell for drugging and raping a tenant, but he continued to own and collect income from five Spokane properties managed by All Star, for which All Star and Jordin split the rental income.
The complaint alleges that, between 2021 and 2022, All Star and Parker falsely and fraudulently sought and obtained relief funding for more than 30 tenants for which All Star was not eligible, and shared the proceeds with Jordin for the properties that he owned.
According to the lawsuit, All Star and Parker falsely certified that tenants had past-due rent even though they knew tenants were current.
The lawsuit also alleges that All Star and Parker knowingly claimed falsely inflated rent amounts that were higher than tenants’ actual rent.
Meanwhile, Parker and All Star knew that the tenants were, in fact, consistently paying rent, either on the tenants’ own or through a charitable organization or government program, the lawsuit said.
The lawsuit also alleges that Parker and All Star knew the funds were not being used as rental assistance.
As a result of the fraud, All Star and Parker received hundreds of thousands of dollars they were not eligible for, the lawsuit said, noting that Jordin, too, received funds for which he was not eligible.
“Landlords and property management companies need to play by the rules, especially when they claim precious and limited rent assistance funds intended to protect members of the community struggling under the weight of a deadly pandemic,” U.S. District Attorney Vanessa R. Waldref said. “We will continue to work with our law enforcement partners to hold accountable those who abuse critically-important housing support programs.”
This case was originally brought by the Northwest Justice Project on behalf of Krystal Jeffries, a former tenant in a property owned by Jordin and managed by All Star.
Under the False Claims Act, whistleblowers may file an action under seal in federal court. The United States investigates the allegations and determines whether to intervene in the action.
Assistant U.S. Attorneys Tyler Tornabene, Jake Brooks and Dan Fruchter are prosecuting the case.
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