Two key suspects accused of stealing COVID-19 relief funds in Lancaster County have admitted to their crimes. The Lancaster County District Attorney’s Office and the State Inspector General charged them with illegally taking money from a rental assistance program meant to help people struggling during the pandemic.

Former Employee Sentenced to Jail Time

Brandice Reyes-Alvarez, 43, from Leola, pleaded guilty to multiple charges, including theft, conspiracy, and forgery. She was sentenced to six to 23 months in jail, followed by two years of probation and eight months of house arrest. Additionally, she must pay $9,070.37 in restitution.

Reyes-Alvarez, a former worker at the Lancaster County Housing and Redevelopment Authorities (LCHRA), worked with 15 others to file fake rental assistance applications. The LCHRA handled applications for the Emergency Rental Assistance Program (ERAP), which was designed to help tenants with pandemic-related financial struggles by paying landlords or, in some cases, tenants directly.

Scheme Involved Fake Landlords and Kickbacks

Assistant District Attorney Mark Fetterman explained that Reyes-Alvarez was the main person behind the fraudulent scheme. “She betrayed taxpayers by abusing a program meant to help people in need during a national emergency,” he said. Reyes-Alvarez admitted to receiving illegal “kickbacks” in exchange for helping others get money through fraudulent applications.

The judge, Dennis Reinaker, told Reyes-Alvarez that she profited from wrongdoing, even though she claimed she was trying to help people in financial trouble during the pandemic.

Co-Conspirator Also Receives Punishment

Adelina White, 37, from Lancaster, pleaded guilty to similar charges immediately after Reyes-Alvarez. White was sentenced to four years of probation, including one year of house arrest. She helped Reyes-Alvarez by pretending to be a landlord and creating fake emails to support fraudulent claims. Together, they were part of a group of 16 people accused of submitting false applications.

Fraudulent Applications Discovered by Investigators

The ERAP program in Lancaster County started in March 2021 to assist tenants and landlords by covering rent and utility bills during the pandemic. Funds came from the U.S. Department of Treasury and the Pennsylvania Department of Human Services.

The scheme was uncovered in June 2022 when LCHRA flagged suspicious applications. Investigators found fake documents, such as leases and rent statements, along with false landlord contact details. Some applications even used the name of a landlord who had died in 2018. Reyes-Alvarez and her co-conspirators redirected funds to themselves by posing as landlords or providing false verification details.

Total Losses and Program Changes

From June 2021 to August 2022, the scheme caused a loss of $281,004. After discovering the fraud, LCHRA improved its procedures to prevent future cases and stopped accepting electronic applications.

The ERAP program continues to help those at risk of eviction, but stricter measures are now in place. Ten of the 16 people involved have pleaded guilty, while cases for the remaining six are ongoing. They are presumed innocent until proven guilty.