A pair of siblings has pleaded guilty to stealing $90,000 in Emergency Rental Assistance Program (ERAP) funds to which they were not entitled, New York Comptroller Thomas P. DiNapoli, Albany County District Attorney Lee C. Kindlon and New York State Police Superintendent Steven G. James announced today.
Shaleen Mahtani and her brother, Denesh Melwani, pleaded guilty to grand larceny in the second degree and will pay full restitution of $90,000.
Melwani, 58, of Woodstock, and Mahtani, 56, of Paramus, N.J., entered their pleas before Honorable Andra Ackerman in Albany County Court. Mahtani’s sentencing is set for Aug. 20 and Melwani’s sentencing is scheduled for April 20.
“Shaleen Mahtani and Denesh Melwani tried to defraud a program meant to help New Yorkers in dire need of housing assistance during the COVID-19 pandemic,” DiNapoli said. “My thanks to D.A. Kindlon and Superintendent James for their assistance in ensuring they were brought to justice.”
“The defendants in this case tried to use the COVID-19 crisis as a ruse to steal money from taxpayers but the paper trail never lies,” Kindlon said. “I applaud the work of the Comptroller’s Office, New York State Police and my office’s Financial Crimes Unit in uncovering this attempt to defraud the state.”
“Both individuals falsely took advantage of a program meant to safeguard and subsidize housing for those who honestly need it. Because of their dishonest acts, vulnerable New Yorker’s had funds stolen from them because of others greed and lack of conscience. I applaud the work of our members and partners at the Comptroller’s Office for holding these two accountable and bringing a measure of justice for the victims,” James said.
As part of the scheme, the defendants completed and filed an application containing false information with the Office of Temporary and Disability Assistance (OTDA) to fraudulently obtain funding through the ERAP.
The ERAP program was created during the COVID-19 pandemic to provide economic relief to medium and low-income households at risk of homelessness due to the pandemic. Landlords or tenants could apply to OTDA for funds to cover unpaid back rent and future rent payments. If the tenant met the criteria, the payments would be made directly to the landlord.
The New York State Police received a complaint that Mahtani and Melwani received ERAP funds that they were not entitled to. Based on the complaint, a joint investigation was launched by DiNapoli’s office, NYSP and the Albany County District Attorney’s Office.
Mahtani and Melwani bought a condo in Brooklyn for $1.6 million in 2018. In February 2021, Melwani transferred the property to Mahtani, but in August 2021, they filed papers with OTDA falsely claiming that Melwani was Mahtani’s tenant in the condo and that he owed his sister back rent for a period of time in which the two jointly owned the property. As a result, Mahtani was issued $90,000 in ERAP funds, which was shared by the defendants.
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 emailing a complaint to [email protected] or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.