By Chicago Times Magazine –
September 13, 2024
The City of Chicago has filed a lawsuit against a former City employee, a property management company, and several individuals for allegedly defrauding the City’s Emergency Rental Assistance Program (ERAP).
ERAP, launched in 2021, provided financial assistance to low-income Chicago households struggling to pay rent and utilities during the COVID-19 pandemic. It is alleged that the defendants submitted fraudulent applications to the program, obtaining over $200,000 in funds.
The City is seeking to recover the fraudulently obtained funds, as well as penalties, legal fees, and damages. The defendants are accused of forging documents, falsifying rent amounts, and making false claims about property ownership.
The lawsuit comes after a joint investigation by the Department of Housing and Department of Law. The investigation revealed a scheme involving Ilyas Lakada, a former City employee, and HAM Management, LLC. Lakada allegedly submitted fraudulent applications while employed by the City, and HAM Management is alleged to have submitted false applications on behalf of non-existent properties.
