A former employee of the District of Columbia Housing Authority who later became a real estate developer has pleaded guilty to federal charges — stemming from a yearslong scheme to secure millions of dollars in financing from private mortgage lenders.
The announcement was made by the office of Jeanine Pirro, the U.S. Attorney for the District of Columbia.
Richard Cunningham, 55, of the District of Columbia, pleaded guilty Wednesday in U.S. District Court to making false statements to a mortgage lending business. He faces a maximum sentence of 30 years in prison and a fine of up to $1 million — with sentencing scheduled for Dec. 4.
“Richard Cunningham didn’t just defraud lenders, he fabricated federal voucher documents, forged signatures and invented a veterans housing program that never existed, all to line his own pockets,” Pirro stated. “Exploiting the name and sacrifice of American veterans to commit fraud is particularly offensive, and my office will pursue those abuses with the full weight of federal law.”
Scheme specifics
According to the announcement, Cunningham carried out the scheme between August 2020 and May 2024 while seeking financing for multifamily properties he owned or controlled in Washington, D.C.
Federal prosecutors said Cunningham submitted false statements and fraudulent documents to private lenders in an effort to obtain loans totaling nearly $15 million.
In one phase of the scheme, Cunningham is said to have applied for six renovation loans through a Virginia-based private mortgage company. The lender required borrowers to demonstrate sufficient equity in their properties to qualify for financing.
Prosecutors said Cunningham knew he lacked the required equity and submitted falsified mortgage statements that understated the balances owed on primary loans tied to the properties.
Altered records reportedly made it appear he held substantially more equity than he actually did. Based on these documents, the lender approved and funded six loans totaling approximately $7.4 million, Pirro’s office added.
Fabricated veterans housing program cited
Authorities said Cunningham later sought additional renovation financing from an Oregon-based private mortgage company for two other properties.
To support these applications, prosecutors said Cunningham created fraudulent lease documents that purported to be associated with a federal housing assistance program for veterans administered by the U.S. Department of Housing and Urban Development (HUD).
Investigators determined that no such program existed.
According to court filings, Cunningham altered legitimate Housing Assistance Payments documents used in HUD’s Housing Choice Voucher program by changing references from “HAP” to “VAP.”
Prosecutors said he then added forged information and signatures to create the appearance that veterans were already residing at the properties under a federal voucher program.
Authorities also said Cunningham submitted fabricated rent rolls, which falsely indicated that all tenants received housing vouchers through the U.S. Department of Veterans Affairs (VA).
One of the two loan applications was approved, resulting in funding of approximately $4.7 million. The second application was denied, federal officials said.
In total, Cunningham sought about $14.9 million in financing and received roughly $12.1 million based on false representations, according to prosecutors.
The FBI‘s Washington Field Office and the HUD Office of Inspector General (OIG) investigated the case. Prosecution is being handled by HUD OIG Special Assistant U.S. Attorney Samantha Miller for the U.S. Attorney’s Office for the District of Columbia.
This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.