MCCRACKEN COUNTY, Ky. — A tenant of Lone Oak Manor said she became suspicious after attempting to access utility assistance and encountered inconsistent information and denials. Now, a former Mercy Housing employee is confirmed to be under investigation for fraud.
The investigation stems from allegations that utility assistance funds intended for residents of the subsidized housing complex were improperly withheld for years. McCracken County Sheriff Ryan Norman previously confirmed that the case would be referred to a federal agency due to the amount of money and number of people potentially affected.
Courtney Hameed, a tenant of Lone Oak Manor, said she believes utility checks have been improperly withheld from her family since she moved to the subsidized housing complex in 2019, and she hopes that some form of compensation will be offered to tenants.
Hameed explained that she had…
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.