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Ozawkie man admits to defrauding program out of $1 million

By Greg Bebermeyer

04/03/2023

(KNZA)--An Ozawkie man admits to defrauding the U.S. Department of Agriculture Rural Development Program of about $1 million intended to help elderly and low income residents with rental housing expenses.

According to a release from the U.S. Attorney's Office for the District of Kansas, 55-year-old Perry Johnson pleaded guilty last week to one count of making a false statement on loan or credit applications.

The release says Rural Development works with rental property owners to subsize rent and maintenance repair expenses on behalf of low income and elderly tenants. Rural Development has a policy requiring all properties to submit Identity of Interest (IOI) disclosures concerning any personal relationships with vendors performing work on properties.

According to court documents, between 2014 and 2017, Johnson worked as the regional manager of a company that managed 47 properties in Kansas. He was responsible for each property- budget and approval of contracts. The release says Johnson ignored the IOI policy and created about $1 million in vendor maintenance and repair invoices in the names of relatives and friends from which he financially benefited.

The release says Johnson also created false worksheets claiming his son resided at three different rural housing apartments although his son was never a tenant at any of those properties.

Johnson is scheduled to be sentenced on June 21.

The USDA - Office of Inspector General investigated the case.

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