Former Orange County deputy pleads guilty in HUD fraud scheme

BEAUMONT - A former Orange County Sheriff's deputy entered a guilty plea to federal money laundering charges Tuesday.

Chad Hogan, 47, of Orange, a former detective with the department, entered the plea before U.S.  Magistrate Judge Keith Giblin in connection with a Housing an Urban Development fraud scheme.

Under the plea agreement, which still must be approved by U.S. Magistrate Judge Marcia Crohn, Hogan will serve 12 months and one day in federal prison and pay $187,706 in restitution.

Hogan cashed 4,302 checks for Beverly Place Apartments manager Shalana Murphy between March 2009 and August 2015 according to a release from the U.S. Attorney's Office.

The checks were all written on accounts from the Beverly Place, Cedarwood and Villa Main Apartments, all in Port Arthur and Groves the release said.

Hogan deposited the checks into an account he controlled and then gave a portion of the total to Murphy in cash and kept a portion for himself according to the release.

Murphy and other on-site managers a the complexes schemed to sign tenants up for HUD utility assistance benefits without the tenant's knowledge and then keep the checks for themselves the release said.

The checks were made payable to the tenants of the three complexes under HUD's utility assistance program., which provides qualifying persons a monthly check to offset utility costs.

Hogan was not directly involved in the scheme to defraud HUD but was aware the checks he was cashing were the result of illegal activity the release said.

Hogan's portion of the scheme totaled $187,706 which the United States is seeking in restitution according to the release.

Under federal statutes Hogan could face up to 20 years in federal prison.

The case was investigated by HUD's Office of Inspector General and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.

(© 2016 KBMT)


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