"The victims were extremely sad and scared:" Scam targets renters seeking low-income housing

“The victims were extremely sad and scared:” Scam targets renters seeking low-income housing

"The victims were extremely sad and scared:" Scam targets renters seeking low-income housing

NEW YORK — Authorities want to warn consumers who are seeking federal housing assistance to be wary of fraudulent offers and websites. These scams are taking fees and personal information from unsuspecting victims.

Fraudulent newspaper advertisement targeting renters seeking low-income housing.

One advertisement claimed to help renters save hundreds of dollars with Section 8 Housing if they made less than $30,000.

"They had to send a $10 check or money order for the initial application.  They were notified they were approved, and they needed to send $299 dollars for the second phase," explained U.S. Postal Inspector Christopher Cizin.

Section 8 Housing is a federally funded assistance program to almost 5 million low income households in the U.S. Postal inspectors say scam ads were placed in penny saver magazines geared at those seeking Section 8 Housing. The ads got a lot of attention. More than 250 victims lost thousand of dollars in the scam.

"The victims were extremely sad and scared because the money that they paid to the scam was money that they could have right now to pay for their current rent," Cizin said.

Postal inspectors caught up with James Bozzuto after an employee he hired thought something was wrong.

"They worked at this company for approximately one week. They saw a lot of money coming in and nobody was receiving what they were doing. They felt like it was a scam," said Cizin.

"It is unfortunate that we do have folks who do this type of scams, sometimes they prey on the very elderly, the very poor folks that don’t know any better or don’t have this information and that is a shame," said Mirza Orriols, a Regional Administrator for the U.S. Department of Housing and Urban Development (HUD).

HUD officials want consumers to know there is no upfront fee to apply for Section 8 vouchers. In order to make sure you are talking to the right people, call your local government officials directly.

James Bozzuto is serving a prison sentence for mail fraud charges.

"I urge everyone to be diligent about a lot of the phone calls or any mail, anyone approaching you. I guess the best advice that I would give – if it sounds too good to be true – it probably is not true," Orriols advised.

James Bozzuto pleaded guilty to mail fraud charges in this case and was sentenced to 33 months in prison.