https://cbs6albany.com/news/local/siblings-accused-of-stealing-90000-in-state-rent-relief-funds-emergency-rental-assistance-program-thomas-p-dinapoli-lee-c-kindlon-steven-g-james-denesh-melwani-shaleen-mahtani

Two siblings have been indicted in Albany County for reportedly stealing $90,000 in state Emergency Rental Assistance Program (ERAP) funds, according to Thomas P. DiNapoli, Lee C. Kindlon, and Steven G. James.

58-year-old Denesh Melwani of Woodstock, and 56-year-old Shaleen Mahtani of Paramus, New Jersey, were arraigned on a sealed indictment in Albany County Court before Judge Andra Ackerman. The indictment charges the pair with Offering a False Instrument for Filing in the First Degree, Grand Larceny in the Second Degree, and Money Laundering in the Second Degree.

Authorities say the siblings reportedly submitted an application containing false information to the New York State Office of Temporary and Disability Assistance (OTDA) to fraudulently obtain funds through ERAP.

DiNapoli said in a statement,

Mahtani and Melwani allegedly tried to scam a program out of money meant to help New Yorkers in need of housing assistance during the COVID-19 pandemic. My thanks to D.A. Kindlon and the New York State Police for their partnership in holding Mahtani and Melwani accountable for their actions.

District Attorney Kindlon said the defendants are accused of exploiting a program designed to support residents during a time of financial hardship, stating,

These defendants lied and defrauded a program that was in place to help citizens who were struggling financially during the COVID-19 crisis. I’m proud of the work of my Financial Crimes Unit, the Comptroller’s Office and the New York State Police to uncover this misuse of taxpayer money, which ultimately belongs to the public.

According to investigators, the siblings jointly purchased a condominium in Brooklyn for $1.6 million in 2018. In February 2021, Melwani transferred ownership of the property to Mahtani through a quitclaim deed.

Prosecutors say that in August 2021, the pair submitted documents to OTDA falsely claiming that Melwani was Mahtani’s tenant and that Melwani owed back rent from March 2020 through August 2021. Based on those submissions, Mahtani reportedly received $90,000 in ERAP funds.

Authorities say the defendants then attempted to conceal the source of the funds by moving the money between financial institutions through various transactions before using it for personal expenses.

State Police Superintendent James credited cooperation between agencies for uncovering the reported scheme, stating,

These arrests are a direct result of the integrative efforts of several law enforcement partners involved in this investigation. The individuals involved in this case preyed on the public’s philanthropy, allegedly and dishonestly obtaining funds meant to provide financial stability to New Yorkers in fear of losing their homes. I thank the Comptroller’s Office and Albany County District Attorney’s Office for their shared commitment in securing the integrity of all who apply for rental assistance in New York State.

The ERAP program was created during the COVID-19 pandemic to provide rental assistance to low- and moderate-income households at risk of homelessness, with payments issued directly to landlords if eligibility requirements were met.

Melwani and Mahtani were released under probation supervision with electronic monitoring and are scheduled to return to court on January 26.