New York State Comptroller DiNapoli and District Attorney Kindlon: Siblings Indicted for Stealing State Rent-Relief Funds

A pair of siblings have been arraigned on a sealed indictment for allegedly stealing $90,000 in Emergency Rental Assistance Program (ERAP) funds to which they were not entitled, New York Comptroller Thomas P. DiNapoli, Albany County District Attorney Lee C. Kindlon and New York State Police Superintendent Steven G. James announced today.

As part of the scheme, the defendants completed and filed an application containing false information with the Office of Temporary and Disability Assistance (OTDA) to fraudulently obtain funding through the ERAP.

Denesh Melwani, 58, of Woodstock, and Shaleen Mahtani, 56, of Paramus, N.J., were arraigned in front of the Honorable Andra Ackerman in Albany County Court on an indictment charging them with Offering a False Instrument for Filing in the First Degree, Grand Larceny in the Second Degree, and Money Laundering in the Second Degree.

"Mahtani and Melwani allegedly tried to scam a program out of money meant to help New Yorkers in need of housing assistance during the COVID-19 pandemic," DiNapoli said. "My thanks to D.A. Kindlon and the New York State Police for their partnership in holding Mahtani and Melwani accountable for their actions."

"These defendants lied and defrauded a program that was in place to help citizens who were struggling financially during the COVID-19 crisis," Kindlon said. "I'm proud of the work of my Financial Crimes Unit, the Comptroller's Office and the New York State Police to uncover this misuse of taxpayer money, which ultimately belongs to the public."

"These arrests are a direct result of the integrative efforts of several law enforcement partners involved in this investigation," James said. "The individuals involved in this case preyed on the public's philanthropy, allegedly and dishonestly obtaining funds meant to provide financial stability to New Yorkers in fear of losing their homes. I thank the Comptroller's Office and Albany County District Attorney's Office for their shared commitment in securing the integrity of all who apply for rental assistance in New York State."

The ERAP program was created during the COVID-19 pandemic to provide economic relief to medium and low-income households at risk of homelessness due to the pandemic. Landlords or tenants could apply to OTDA for funds to cover unpaid back rent and future rent payments. If the tenant met the criteria, the payments would be made directly to the landlord.

The New York State Police received a complaint that Mahtani and Melwani received ERAP Funds that they were not entitled to. Based on the complaint, a joint investigation was launched by DiNapoli's office and the State Police.

The investigation found that Mahtani and Melwani jointly purchased a condo in Brooklyn for $1.6 million in 2018. In February 2021, Melwani transferred the property to Mahtani through a quitclaim deed. In August 2021, the co-defendants submitted documents to OTDA claiming that Melwani was Mahtani's tenant for the condo and further claimed that Melwani owed Mahtani back rent from March of 2020 through August of 2021. Based on these submissions, Mahtani was issued an ERAP payment for $90,000. The pair proceeded to conceal the source of the funds by moving the money between financial institutions through various types of financial transactions. They then used the funds for personal use.

Mahtani and Melwani were released under the supervision of probation with electronic monitoring and are due back in court on Jan. 26.

The charges filed in this case are merely accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.

Since taking office in 2007, DiNapoli has committed to fighting public corruption and encourages the public to help fight fraud and abuse. New Yorkers can report allegations of fraud involving taxpayer money by calling the toll-free Fraud Hotline at 1-888-672-4555, by emailing a complaint to [email protected]or by mailing a complaint to: Office of the State Comptroller, Division of Investigations, 8th Floor, 110 State St., Albany, NY 12236.