WILMINGTON, N.C. — Two Lenoir County women have pleaded guilty to federal charges after prosecutors say they participated in a scheme that fraudulently obtained more than $187,000 in pandemic-era emergency rental assistance funds.
According to the U.S. Attorney’s Office for the Eastern District of North Carolina, Kendra Edmondson, 39, and Britteny Dryer, 35, each pleaded guilty to Conspiracy to Commit Mail Fraud.
Federal prosecutors said Edmondson, Dryer and others submitted fraudulent applications to the North Carolina Housing Opportunities and Prevention of Evictions, or NC HOPE, program, which provided emergency rental assistance during the COVID-19 pandemic.
Between November 2020 and December 2021, prosecutors said the group submitted 23 fraudulent applications, using fictitious tenant lease agreements involving multiple properties in Lenoir County to support the applications.
The scheme resulted in more than $187,000 in federal housing assistance being obtained for the defendants’ and their associates’ personal benefit, according to prosecutors.
“These two lowdown fraudsters chose to milk the system by lining their pockets while hardworking taxpayers rolled up their sleeves during the pandemic,” U.S. Attorney Ellis Boyle said following the pleas. “Do what your parents taught you, don’t steal. Cheaters. Never. Win.”
The NC HOPE program was created to help North Carolina renters remain in their homes during the pandemic by preventing evictions and utility disconnections. The program initially used $51.5 million in federal Community Development Block Grant funding provided through the CARES Act.
North Carolina State Bureau of Investigation Director Chip Hawley credited cooperation among federal, state and local law enforcement agencies with helping bring the case forward.
“This case reflects the strength of our partnerships with the USAO-EDNC and HUD-OIG in fighting fraud, waste and abuse that hurts our most vulnerable citizens,” Hawley said.
Chief U.S. District Judge Richard E. Myers II accepted the guilty pleas.
The U.S. Department of Housing and Urban Development Office of Inspector General and the North Carolina State Bureau of Investigation are investigating the case. The U.S. Marshals Service and Kinston Police Department also provided assistance.
Edmondson and Dryer are scheduled to be sentenced later this year. Each faces up to 30 years in federal prison and a fine of up to $1 million.
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