Sixteen Chicago Housing Authority employees were fired and one has quit after an internal investigation found they committed federal program fraud when they submitted falsified Paycheck Protection Program applications to receive COVID-19 relief funds they were not entitled to, the agency confirmed.
“As a mission-driven organization that serves families, seniors and people experiencing housing insecurity, everyone who works at CHA must operate from a place of integrity,” CHA CEO Tracey Scott said in an emailed statement. “When one of us violates that trust, whether on the job or outside the job, it affects us all. While this is a difficult and disappointing moment for CHA, we will use it as an opportunity to hold ourselves to a higher standard and recommit to our values of integrity, consistency and accountability.”
The investigation by the housing authority’s inspector general was looking into all active CHA employees who were identified as having gotten the PPP loan but hadn’t previously received authorization to hold a second job, or hadn’t disclosed outside business income on their annual financial interest statements.
The inspector general found the employees submitted falsified applications to the Small Business Administration, according to a CHA spokeswoman. As a result, 16 CHA employees were fired on July 15 and the 17th resigned before the agency could act.
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