A former property director for the Chicago Housing Authority and the president of a local construction company have been indicted on federal fraud charges.
They are accused of a scheme involving bribes in exchange for construction and renovation work at CHA properties.
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Ryan Ross, a former director in CHA’s property and asset management department, is accused in the indictment of receiving over $421K in kickbacks from Vanessa Rhodes, the president of Bell’s Better Buildings, a Chicago company that did business as Twenty Eleven Construction.
In return, Ross allegedly used his position to fraudulently funnel over $4.8M in construction, renovation and other work to the company and another related to Rhodes, the U.S. Attorney’s Office for the Northern District of Illinois said Tuesday in its release on the indictment.
The pair allegedly concealed the fraud by submitting false documents to the CHA, including proposals, scopes of work and invoices. Ross spent some of the improper funds to buy a vehicle for himself and pay for repairs and renovations on his home, according to the indictment.
The indictment charges Ross and Rhodes with eight counts of honest services fraud, each of which is punishable by up to 20 years in federal prison. The indictment isn't evidence of guilt.
Neither Ross nor Rhodes could immediately be reached for comment.
"Corruption in the awarding of public housing contracts undermines trust, distorts competition, and diverts already scarce resources," U.S. Attorney Andrew Boutros said in a statement.
Kathryn Richards, inspector general of the CHA, said in a statement the organization has worked with federal law enforcement since the beginning of the investigation to hold the pair accountable for "their egregious corruption."
"They hijacked a program meant to repair and preserve Chicago’s already scarce public housing, diverting public funds to enrich themselves," she said.
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