A Glenburn woman has received a prison sentence for stealing HUD payments from elderly tenants.

The Case Was Tried in Portland Where Ballinger Had Worked

Kelly Ballinger, 57, was charged in U.S. District Court in Portland with embezzling from an organization receiving federal funds and conspiring to alter money orders.

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She's Accused of Altering Money Orders and Embezzling Federal Funds

Between December 2017 and June 2021, Ballinger was a property manager for a Portland apartment complex with residences funded by the Department of Housing and Urban Development, also known as HUD. The United States Attorney's Office District of Maine says Ballinger stole rent payments from HUD Housing Choice Voucher Program tenants who were elderly or disabled. She would direct them to pay their rent with a blank postal money order and then place her name or that of fellow employee Kathleen Conway, 70, on the payee line. She would then add information like 'groceries' on the memo line to suggest the payments were reimbursements. Court documents state that, in some cases, Ballinger would deflate the tenants' income to as low as $0 so that HUD would pay a larger share of the rent to disguise shortfalls.

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Kathleen Conway pleaded guilty to embezzlement on August 2, 2023, and is awaiting sentencing.

She Could Face More Than 10 Years in Prison

Ballinger faces up to ten years in prison as well as a maximum fine of $250,000 on the embezzlement charge, and up to five years in prison and a maximum fine of $250,000 on the charge of altering a postal money order, followed by up to three years of supervised release. She may also be ordered to pay restitution to HUD.

Her sentencing will be held at a later date.

We'll update this story as more details become available.

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