FORMER NYC DEPARTMENT OF CORRECTIONS CHAPLAIN CHARGED IN MANHATTAN FEDERAL COURT WITH $200,000 HOUSING FRAUD

United States Attorney
Southern District of New York
U.S. ATTORNEY’S OFFICE
SEPTEMBER 14, 2011 ELLEN DAVIS,

PREET BHARARA, the United States Attorney for the
Southern District of New York, and ROSE GILL HEARN, the
Commissioner of the New York City Department of Investigation
(“DOI”), announced today the unsealing of a Complaint charging
LEIB GLANZ and MENASHE GLANZ with one count of conspiracy to
commit theft of federal funds and one count of theft of federal
funds in connection with a $200,000 housing fraud scheme. The
defendants voluntarily surrendered to the U.S. Attorney’s Office
this morning.

Manhattan U.S. ATTORNEY PREET BHARARA stated: “As
alleged in the complaint, Leib and Menashe Glanz engaged in a
years-long subterfuge to take criminal advantage of federal
housing subsidies. Especially in these trying economic times, we
cannot tolerate stealing from the public. I commend the
investigative work of the DOI that brought this fraud to light.”
DOI Commissioner ROSE GILL HEARN stated: “Recipients of
scarce Section 8 benefits are required to follow strict
regulations that include accurately reporting their residency and
household composition. The defendants deceived the City’s
housing agencies and stole over $200,000 in public housing funds,
according to the criminal complaint, making this the largest
individual case of tenant fraud investigated by DOI. This kind
of fraud depletes the precious taxpayer dollars available to
individuals in need of housing assistance. DOI and the U.S.
Attorney’s Office for the Southern District of New York worked
together to uncover and stop this pernicious abuse.”
According to the Complaint, which was unsealed earlier
today in Manhattan federal court:

LEIB GLANZ is a former Chaplain with the New York City
Department of Corrections who worked at the Brooklyn Detention
Complex, in Brooklyn, New York, and the Manhattan Detention
Complex, in New York, New York, from October 2000 though June
2009.

From 1996 through September 2011, LEIB GLANZ and his
brother, MENASHE GLANZ, participated in a scheme to fraudulently
obtain Section Eight Program housing benefits. Under the Section
Eight Program, the U.S. Department of Housing and Urban
Development (“HUD”) subsidizes the rent of low-income tenants who
meet certain income and eligibility requirements. In New York
City, this program is administered by the New York City Housing
Authority (“NYCHA”) and the New York City Department of Housing
Preservation and Development (“HPD”).

As part of this scheme, MENASHE GLANZ applied for and
obtained Section Eight housing benefits to live in an apartment
located in Brooklyn, New York (the “Section Eight Apartment”).
After obtaining these benefits, MENASHE GLANZ permitted his
brother LEIB GLANZ to permanently reside at this apartment from
at least 1996 through September 2011, while MENASHE GLANZ lived
at another apartment that was not subsidized by the Section Eight
Program. Additionally, according to documents submitted to NYCHA
and HPD, LEIB GLANZ previously signed contracts with NYCHA on
behalf of the landlord of the Section Eight Apartment, the United
Talmudical Academy, which also purportedly employed MENASHE
GLANZ. In the course of this scheme, LEIB GLANZ and MENASHE
GLANZ defrauded NYCHA and HPD of over $220,000.
* * *
LEIB GLANZ, 53, of Brooklyn, New York, and MENASHE
GLANZ, 49, of Brooklyn, New York, each face a maximum total
sentence of 15 years in prison if convicted.
Mr. BHARARA praised the investigative work of DOI,
especially DOI’s NYCHA Office of Inspector General in this
investigation.
The case is being handled by the Office’s Public
Corruption Unit. Assistant United States Attorney STEVE C. LEE
is in charge of the prosecution.
The charges contained in this Complaint are merely
accusations and the defendant is presumed innocent unless and
until proven guilty.
11-273 ###
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