Denesh Melwani, 58, of Woodstock, was sentenced to five years’ probation for his role in stealing $90,000 in Emergency Rental Assistance Program (ERAP) funds to which he was not entitled, State Comptroller Thomas P. DiNapoli, Albany County District Attorney Lee C. Kindlon and New York State Police Superintendent Steven G. James announced today.
Melwani and his sister, Shaleen Mahtani, 56, of Paramus, N.J., pleaded guilty to grand larceny in the second degree in February. The two paid a total of $90,000 in restitution prior to Melwani’s sentencing. Mahtani is scheduled to be sentenced later this year.
“Denesh Melwani and his sister stole $90,000 from a program created to protect New Yorkers in desperate need of housing assistance during the pandemic,” DiNapoli said. “Today, he is a convicted felon who has had to pay back the money he stole. My office will continue to partner with law enforcement to root out waste, fraud and abuse. I thank D.A. Kindlon and Superintendent James for their continued partnership.”
“As technology advances so do fraudsters, and this case shows that collaboration works in holding defendants accountable when they attempt to use deception to steal taxpayer dollars,” Kindlon said. “Kudos to the Comptroller’s Office, New York State Police and our Financial Crimes Unit in uncovering this attempt to defraud the state.”
“This sentencing significantly demonstrates the effectiveness of the measures taken to safeguard the application process for rental assistance. The State Police will continue to work to impede the use of false information to prevent individuals from fraudulently obtaining funds they are not entitled to. I commend the New York State Comptroller’s Office, our State Police members, and Albany County District Attorney’s Office for their combined effort in this sentencing,” James said.
To perpetrate their scheme, the defendants filed a phony application 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 help medium and low-income households at risk of eviction. 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 and the State Police.
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 received $90,000 in ERAP funds, which was shared by the defendants.
Melwani was sentenced before Hon. Andra Ackernman in Albany County Judicial Center. Mahtani’s sentencing is scheduled for Aug. 20.
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.