Fraud Scheme Exposed: 2 From Texas and New York Stole COVID Federal Housing Funds from NC HOPE Program

WILMINGTON, N.C. - Daquan Copeland, 35, of Houston, TX and Esless White Sr., 51, of Jamaica, NY, pleaded guilty in federal court to Conspiracy to Commit Mail Fraud by engaging in a scheme with others to defraud the federal government of more than $187,000. Each faces up to 30 years in federal prison and a fine of up to one million dollars when they are sentenced later this year.

"These two leeches bled dollars from federal programs designed to help those in need. Now they sit and wait for the gavel of justice to hammer down their sentence," said U.S. Attorney, Ellis Boyle. "Anyone who defrauds any of our taxpayer programs will be held accountable. Know this, we are watching, we will catch you, we will prosecute you. Crime Doesn't Pay! Cheaters. Never. Win."

Copeland and White applied for emergency rental assistance through the North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) program. As part of their scheme, they and others submitted fake tenant leases for several properties in Lenoir County to support their applications. Between November 2020 and December 2021, Copeland, White, and others submitted 23 fraudulent applications and stole more than $187,000 in government housing funds for their personal use.

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial support to millions of Americans affected by the economic fallout of the COVID-19 pandemic. As part of this relief, the CARES Act authorized $5 billion for Community Development Block Grant (CDBG) programs, giving states and local governments flexible federal funding to prevent, prepare for, and respond to the pandemic. The U.S. Department of Housing and Urban Development (HUD) manages the CDBG program, which supports economic and community development and provides long-term recovery funding to states and localities after disasters and emergencies.

"Daquan Copeland and Esless White participated in a conspiracy that diverted more than $180,000 in limited taxpayer funds for their own enrichment, depriving a pandemic relief program of resources intended to help people struggling to remain in their homes," said Special Agent in Charge Jerome Winkle with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). "This was not a victimless crime. Every dollar stolen was a dollar unavailable to help someone pay rent during an unprecedented national crisis. HUD OIG remains committed to working alongside our prosecutorial and law enforcement partners to aggressively pursue those who exploit HUD programs for personal gain."

"This case reflects the strength of our partnerships with the USAO-EDNC and HUD-OIG in fighting fraud, waste and abuse that hurts our most vulnerable citizens," said NCSBI Director, Chip Hawley. "Thanks also to USMS and the Kinston Police Department for their help. We will continue to aggressively target those who steal from hardworking taxpayers."

The State of North Carolina's Office of Recovery and Resiliency, a division of the North Carolina Department of Public Safety under then - Governor Roy Cooper, gave away federal funds made available in the CARES Act to supposedly North Carolina renters to ostensibly let them stay in their homes during COVID-19 by preventing evictions and the loss of utility services. The NC HOPE program utilized an initial $51.5 million allocation of CDBG funds from the CARES Act to provide housing and utility assistance. The State of North Carolina also received CRF funds from the CARES Act, of which $66 million was allocated to pay administrative costs associated with the NC HOPE program.

Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. The United States Department of Housing and Urban Development - OIG, and the SBI are investigating the case.

A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North CarolinaLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. or on PACERLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. by searching for Case No. 4:26-CR-14-M.