Albany County Court proceedings conclude with guilty pleas and full restitution ordered in state rent-relief fraud case.
(WNY News Now) – Two siblings have pleaded guilty to stealing $90,000 from New York’s Emergency Rental Assistance Program (ERAP), according to an announcement by Thomas P. DiNapoli, Lee C. Kindlon, and Steven G. James.
Shaleen Mahtani, 56, of Paramus, New Jersey, and Denesh Melwani, 58, of Woodstock, New York, each pleaded guilty to grand larceny in the second degree in Albany County Court. Both defendants agreed to pay full restitution totaling $90,000.
The pleas were entered before Judge Andra Ackerman. Melwani is scheduled to be sentenced on April 20, while Mahtani’s sentencing is set for Aug. 20.
Investigation Into ERAP Fraud
According to authorities, the case stems from fraudulent claims submitted to the state’s Emergency Rental Assistance Program, which was created during the COVID-19 pandemic to help low- and moderate-income households avoid eviction.
The siblings purchased a condominium in Brooklyn for $1.6 million in 2018. In February 2021, Melwani transferred ownership of the property to Mahtani. Later that year, in August 2021, they allegedly filed paperwork with the New York State Office of Temporary and Disability Assistance (OTDA), falsely claiming that Melwani was Mahtani’s tenant and owed back rent.
Authorities said the application contained false information and misrepresented their relationship and financial arrangement. As a result of the application, Mahtani received $90,000 in ERAP funds. Investigators determined the money was shared between the two.
The New York State Police received a complaint alleging the pair had improperly obtained the funds. A joint investigation was launched by the Comptroller’s Office and the State Police, leading to the charges and subsequent guilty pleas.
Both defendants now await sentencing in Albany County Court, where final penalties will be imposed in addition to the agreed-upon restitution.
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