Johnstown Resident Pleads Guilty to Theft from a Program Receiving Federal Funds

This release was published following the 43-day government shutdown during which the plea occurred.

JOHNSTOWN, Pa. - A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of stealing funds from a program or entity receiving federal funding, First Assistant United States Attorney Troy Rivetti announced.

Brett Smith, 41, pleaded guilty to one count before United States District Judge Stephanie L. Haines on October 1, 2025.

In connection with the guilty plea, the Court was advised that Smith, the former manager of a Johnstown apartment complex that houses the elderly, deposited rental payments and coins from the complex's laundry machine into his own bank account. The complex receives federal funding from the United States Department of Housing and Urban Development (HUD) in the form of Section 8 Housing Assistance Payments.

Judge Haines scheduled sentencing for February 3, 2026. The law provides for a maximum total sentence of up to 10 years in prison, a fine of $250,000 or an alternative amount, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.

The HUD Office of Inspector General and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Smith.