C. Documenting Fraud — HUD Handbook 4350.3 REV-1

HUD Occupancy Handbook Chapter 8: Termination

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Section 4: Discrepancies, Errors, and Fraud

4350.3 REV-1

In order to establish fraud, the tenant file must contain documentation showing the following:

The tenant was made aware of program requirements and prohibitions (i.e., all appropriate signatures are on the intake documents); and
The tenant intentionally misstated or withheld some material information. The strongest proof of fraud is an admission by the tenant. Fraudulent intent can also be demonstrated by documenting that:
- a. The act was done repeatedly (i.e., not a one-time or accidental occurrence), or there was prior determination of fraudulent intent or conviction (e.g., signing false HUD-50059s);
- b. False names or social security numbers were used;
- c. The tenant falsified, forged, or altered documents;
- d. The tenant omitted material facts that were known to the tenant (e.g., employment of self or other household members); or
- e. The tenant made admission to another person of the illegal action or omission (e.g., boasting that he/she cheated, or telling an employer or neighbor that an “absent” spouse has moved in with the tenant).