ORANGE COUNTY DISTRICT ATTORNEY PRESS RELEASE

Case # 15CF2249

Date: October 2, 2015

SIX FAMILY MEMBERS TO BE ARRAIGNED FOR DEFRAUDING OVER $100,000 IN GOVERNMENT SUBSIDIES BY FALSIFYING INFORMATION TO RECEIVE HOUSING ASSISTANCE

SANTA ANA, Calif. – Six family members are scheduled to be arraigned today for defrauding over $100,000 in government subsidies by falsifying information to receive housing assistance. The defendants are each being held on $175,000 bail and must prove the money is from a legal and legitimate source before posting bond. The defendants are scheduled to be arraigned today, Oct. 2, 2015, at 10:00 a.m. in Department CJ-1, Central Jail, Santa Ana.

Charges

Thang Chinh Ly, 66, and Thu Ha Le, 53, both of Westminster, are each charged with one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and sentencing enhancement allegations for over $100,000 loss, aggravated white collar crime over $100,000, property damage or loss over $65,000. Thang Ly is additionally charged with seven felony counts of perjury by declaration and Le is additionally charged with six felony counts of perjury by declaration. If convicted, Thang Ly faces a maximum sentence of 13 years and four months in state prison and Le faces a maximum sentence of 12 years and eight months in state prison.

John Giang Ly, 26, Westminster, is charged with one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, three felony counts of perjury by declaration, and sentencing enhancement allegations for over $100,000 loss, aggravated white collar crime over $100,000, property damage or loss over $65,000. If convicted, he faces a maximum sentence of 10 years and eight months in state prison.

Linda Linh Gia Ly, 22, Westminster, is charged with, one felony count of grand theft by public housing fraud, two felony counts of perjury by declaration, and sentencing enhancement allegations for over $100,000 loss, property damage or loss over $65,000. If convicted, she faces a maximum sentence of nine years and four months in state prison.

Dong Hong Phan, 74, Fountain Valley, is charged with one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and sentencing enhancement allegations for over $100,000 loss, aggravated white collar crime over $100,000, property damage or loss over $65,000. If convicted, he faces a maximum sentence of eight years and eight months in state prison.

Anh Tuyet Ly, 64, Fountain Valley, is charged with one felony count of aid by misrepresentation, one felony count of grand theft by public housing fraud, and sentencing enhancement allegations for over $100,000 loss, aggravated white collar crime over $100,000, property damage or loss over $65,000. If convicted, she faces a maximum sentence of eight years and eight months in state prison.

Housing Subsidies Under HUD Section 8

The Santa Ana Housing Authority and Orange County Housing Authority (OCHA) are two of four agencies that administer housing subsidies in Orange County under Housing and Urban Development (HUD) Section 8 to aid low-income adults by providing rental housing assistance. To qualify for the subsidies, tenants must meet the income limit, renew their application annually, and are required to report any changes to their financial status or living situation within 15 days. Failure to report these changes can result in the termination of the tenant’s present housing subsidy, and the tenant may be charged with a Section 8 overpayment.

Circumstances of the Case

In April 2003, Thang Ly is accused of receiving Santa Ana HUD Section 8 rental assistance for himself and his family. The contract rent for their home was approximately $1,850 per month, and he was required to pay $99 per month while the remaining $1,751 was subsidized. Thang Ly and his wife, Le, and their son John Ly, and daughter Linda Ly are accused of living in the home.

From 2003 to 2013, the defendants are accused of receiving housing assistance from OCHA totaling over $176,000. They are accused of failing to report over $83,000 in overseas wire transfers to China to OCHA.

Thang Ly, Le, John Ly, and Linda Ly received rent vouchers from 2003 to 2013 for a residence that was owned by Anh Ly and her husband Phan, who purchased the property in cash. The defendants are accused of previously receiving notice about the rule against renting to relatives at the time of contracting with HUD to receive government housing assistance.

On March 22, 2007, John Ly turned 18 years old and is accused of failing to report to OCHA about his relationship to the homeowners and failing to report his income from selling illegal counterfeit merchandise. Thang Ly, Le, John Ly, and Linda Ly are accused of failing to report the earned income of John Ly to his assigned case worker for OCHA. They are accused of failing to report to OCHA that their residence was owned by Thang Ly’s sister, Anh Ly and her husband Phan.

On Sept. 22, 2011, Linda Ly turned 18 years old and is accused of failing to report her income, her family’s income, her relationship to the homeowners, and John Ly’s illegal sales of counterfeit merchandise to OCHA.

On Nov. 29, 2011, OCHA submitted the case to the Orange County District Attorney’s Office (OCDA) for investigation. The defendants were arrested yesterday, Oct. 1, 2015. The OCDA Bureau of Investigation investigated this case.

Deputy District Attorney Renee Jones of the Special Prosecutions Unit is prosecuting this case.

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