PHILADELPHIA, PA — A former Philadelphia Housing Development Corporation employee was sentenced Tuesday, Nov. 10, to two years of probation, community service and $14,400 in restitution for diverting public housing assistance funds through fraudulent applications submitted while she worked for the city-affiliated organization.
Latonia Reed, 41, of Philadelphia, received the sentence from U.S. District Judge Joel H. Slomsky after pleading guilty in June to one count of wire fraud.
Federal prosecutors determined that Reed used her position as a financial specialist and program analyst at the Philadelphia Housing Development Corporation, or PHDC, to prepare and approve four fraudulent housing assistance applications between July 10, 2024, and February 2025.
The applications resulted in approximately $14,400 in payments to another individual, identified in federal court documents as Person 1.
According to the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Reed fabricated tenant information and supporting documents to obtain the payments.
The fraudulent applications included fictitious tenant names and telephone numbers, along with falsified rental records purporting to document rent payments and outstanding balances.
Reed also forged tenant signatures on agreements, affidavits and notices submitted as part of the applications.
Prosecutors stated that Reed drafted, submitted and approved the four applications herself, using her employment responsibilities to facilitate the scheme.
Reed began working for PHDC in 2021. The organization administers housing assistance and community development programs for Philadelphia residents.
Its programs include rental assistance, first-time homebuyer grants, neighborhood preservation investments and financing for improvements to affordable rental housing.
PHDC also provides home modifications for low-income residents with physical disabilities and supports affordable housing development projects.
The fraudulent payments were made through an organization responsible for distributing housing assistance to residents facing financial and housing-related needs.
Reed was charged by criminal information with one count of wire fraud before entering her guilty plea in June 2026.
The sentence requires her to repay the $14,400 obtained through the scheme, complete community service and serve two years under probation supervision.
The investigation was conducted by the FBI and the Philadelphia Office of the Inspector General.
Assistant U.S. Attorney Nancy E. Potts prosecuted the case.
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