Weekly Real Estate News
Federal prosecutors have charged two Washington, D.C., residents in an alleged multi-year scheme that authorities say used stolen or fabricated identities to obtain apartment leases, avoid rent and resell access to units.
A seven-count superseding indictment announced by the U.S. Attorney’s Office for the District of Columbia charges Maliktra Derenorcourt, 27, and Philippe Oliver Gadie, 34. An indictment contains allegations; both defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Prosecutors allege the scheme operated from at least November 2023 and involved numerous apartment complexes in Washington and surrounding areas. The indictment alleges participants used stolen or fabricated Social Security numbers, so-called credit privacy numbers and fabricated employment letters to obtain leases.
Prosecutors say eviction delays were part of the alleged strategy
According to the government, participants allegedly lived in some units and sold access to others for less than the value of the lease. Prosecutors say nearly all apartments tied to the alleged scheme eventually entered eviction proceedings for nonpayment.
Current losses are estimated in the hundreds of thousands of dollars, although the investigation is continuing. Prosecutors allege the defendants exploited the time required to complete eviction proceedings by submitting batches of new lease applications under different identities.
The indictment also alleges that Bitcoin and Cash App accounts opened with stolen or fabricated identities were used to move money. Authorities say one victim’s identity was used to open a Cash App account that conducted hundreds of transactions.
The case is being investigated by Homeland Security Investigations with assistance from IRS Criminal Investigation. The allegations are notable for housing operators because they combine identity theft, application fraud, payment losses and eviction timelines—risks that traditionally sit in different parts of property management.
No court has determined that the defendants committed the alleged conduct. The criminal case will now proceed through the federal judicial process, where prosecutors bear the burden of proving the charges beyond a reasonable doubt.
