A 49-year-old Davenport landlord faces a felony charge after the Iowa Finance Authority says she falsified information and illegally received more than $12,000 in COVID-19-related rental assistance funds.
Carrie Ann Kephart faces a charge of first-degree fraud, court records say.
The Iowa Finance Authority (IFA) administers a program that helps income-eligible renters who are at risk of eviction because of involuntary loss of income as a result of COVID-19. The tenant and landlord each are responsible to complete their own separate applications/verifications and provide support in documentation through a web-based portal, an arrest affidavit says.
The tenant and landlord each digitally sign and date a certification to verify all information provided is true and correct and acknowledges it is a criminal offense to make a false statement in writing to get the money. Applications are reviewed to determine whether the program’s qualifications are met and, if approved, funds are deposited directly into the landlord’s bank account to assist with the tenant’s rent, the affidavit says.
On Aug. 31, 2020
The IFA received and eviction and foreclosure prevention program (EFPP) application for “L.P.” LP’s application indicated that on March 28, 2020, one or more of his household members had experienced a documented, involuntary loss of income because of COVID-19. L.P.’s application attested that the 1500 block of Fulton Court, Davenport, is his household’s primary residence and because of the loss of income the household could not pay their monthly rent of $800 for August, September, October and November 2020. On Sept. 2, 2020, payment of $3,200 was issued to Kephart, the landlord, the affidavit says.
A subsequent investigation during the months EFPP was requested/paid revealed L.P. was not living on Fulton Court because he was incarcerated in Texas. Furthermore, Kephart and a co-defendant evicted L. P. from this residence on June 30, 2020 through the Scott County District Court, the affidavit says.
On Sept. 7, 2020
The IFA received an EFPP application for “S. M.” The application indicated that on April 6, 2020, one or more of his household members had experienced a documented, involuntary loss of income because of COVID-19, and the household could not pay the $800 rent for June, July, August and September 2020. On Sept. 7, 2020, payment of $3,200 was issued to Kephart, the landlord, the affidavit says.
An investigation revealed S. M.’s Social Security number and date of birth on the application are invalid. He was born in 2008 and lives with his parents, Kephart and the co-defendant. “Furthermore, the residence was only owned by (the co-defendant) until 7/31/2020, as it was acquired via a Tax Sale Deed by FFG Partners LLC 179,” the affidavit says.
On Oct. 5, 2020
The IFA received an application for “F. C.” indicating on April 7, 2020, one or more of his household members on the 2200 block of Farnam Street, Davenport, were unable to pay $825 in rent for August, September, October and November 2020 because of a documented, involuntary loss of income because of COVID-19. On Oct. 5, 2020, $3,200 was issued to Kephart, the landlord. F.C. no longer lived at that address and (the co-defendant) no longer owned the property. The co-defendant owned the property until July 31, 2020, as it was acquired via a Tax Sale Deed by FFG Partners LLC 179, the affidavit says.
On Oct. 19, 2020
The IFA received an EFPP application for “B. D.,” whose application indicated that on April 4, 2020, one or more of his household members had experienced a documented, involuntary loss of income because of COVID-19. The application attests that B. D. lived on the 2600 block of Long Hollow Road, Dorchester, Iowa, and that one or more members of the household could not pay the monthly rent of $950 for August, September, and October 2020. On Oct. 28, 2020, $2,850 was issued to Kephart, the landlord. The property actually is owned by Kephart’s father, “who knew nothing about this application,” the affidavit says. Additionally, B. D. never lived at the residence “and this is a fictitious application,” the affidavit says.
“As a result of the falsified information, provided on the aforementioned applications, Carrie Kephart deceived the Iowa Finance Authority who in turn unwittingly paid out $12,450 in COVID-19related assistance funds,” the affidavit says.
Kephart was released on her own recognizance to appear at a preliminary hearing July 28 in Scott County Court.
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