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The indictment charges Ross, 50, of Bolingbrook, Illinois, and Rhodes, 47, of Chicago, with <\/span><\/span><\/span><\/span><\/span><\/span>eight counts of honest services fraud<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, each punishable by up to 20 years in federal prison, according to a June 9 press release from the attorney general\u2019s office for the Northern District of Illinois. Arraignments in federal court in Chicago have not yet been scheduled.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The CHA, the third-largest public housing agency in the nation, develops and operates housing throughout the city for low-income families, the elderly and people with disabilities, primarily via federal funds from HUD. However, it has experienced turmoil in recent years.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The agency was without a top leader for a year and a half until Keith Pettigrew, former head of Washington, D.C.\u2019s housing authority, was <\/span><\/span><\/span><\/span><\/span><\/span>named CEO in April despite objections<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> from Chicago Mayor Brandon Johnson, WTTW reported. Residents also filed a lawsuit accusing the CHA of violating the state Open Meetings Act when it voted in March to appoint Pettigrew.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n As part of his role at the agency, Ross oversaw CHA property managers and worked with them to make units ready for new residents, selected vendor-companies for this unit-turn work and approved invoices.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Ross and Rhodes concealed their scheme \u2014 including Ross\u2019s financial interest in the unit-turn work he awarded to Twenty Eleven Construction and the affiliated company \u2014 by submitting false documents to the CHA, including proposals, scopes of work and invoices, the indictment claims. Ross and Rhodes also allegedly caused Rhodes\u2019s husband to falsely represent himself to CHA property managers as an employee of the affiliated company who would complete the work on CHA units.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Less than two years ago, <\/span><\/span><\/span><\/span><\/span><\/span>Ross was fired for violating CHA\u2019s procedures<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, including one that cost the agency more than $19,000 in unnecessary expenses for construction work, the Chicago Sun-Times reported.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Andrew Boutros, U.S. attorney for the Northern District of Illinois; Machelle Jindra, special agent in charge of HUD\u2019s Office of Inspector General; and Kathryn Richards, inspector general of the CHA, announced the indictment.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Corruption in the awarding of public housing contracts undermines trust, distorts competition and diverts scarce resources, Boutros said in the release.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cHolding individuals accountable when they exploit their positions for personal gain is essential to protecting the integrity of our public institutions, ensuring that taxpayer funds are properly safeguarded, and making sure that everyday people in need of public housing assistance get the support they are entitled to under the programs,\u201d Boutros said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Click <\/span><\/em><\/span><\/span><\/span><\/span>here<\/span><\/span><\/span><\/em><\/span><\/span><\/span><\/span><\/a> to sign up to receive multifamily and apartment news like this article in your inbox every weekday.<\/span><\/em><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n