SAN FRANCISCO—On Wednesday, July 26, Gregory Finkelson, 63, of San Francisco has been indicted for charges conspiracy, theft of government property, and money laundering in connection to a scheme where he received Section 8 housing payments for years while concealing his actual income from government officials. If convicted, the defendant could face up to 20 years in prison and a fine that is twice the value of the laundered funds.
Starting in 2006 and into 2020, Finkelson allegedly stole about $341,455 in Section 8 rental assistance. Not only did he conceal his true earnings but concealed the fact that he was a homeowner, a business owner and where he lived. According to the indictment, if Finkelson were honest about his employment and homeownership he would have never qualified for Section 8.
To qualify for Section 8, families must have an income no higher than 80 percent of the area’s medium income. A tenant cannot have an ownership interest in the rental unit. The Section 8 program is designed to assist low-income residents.
The defendant reported to housing authorities that in 2015 to 2017, he earned just $12,000 per year while working for American Corporate Services. Finkelson was actually the sole owner of ACS which is a company that earned $2.8 million in gross income between 2013 and 2018.
ACS is a business that deals with immigration law that consults with investors trying to immigrate to the U.S. under the EB-5 visa program. The program gives legal residency statutes to immigrants seeking to establish businesses in the U.S. with at least 10 jobs being created.
According to investigators, the defendant subdivided the single-family home where he lived into three units. He lived in one unit, operated his business out of the second, and rented out the third.
A Russian co-conspirator was involved in Finkelson’s scheme. The co-conspirator allegedly helped Finkelson, who is also originally from Russia, hide information that would reveal that he was the owner of the building he lived in.
From January 2018 to February 2020, SFHA deposited Section 8 funds into Finkelson’s Wells Fargo Bank account which he used towards a vacation timeshare in Maui, Hawaii. On June 27, Finkelson posted on Facebook an ad for a one-bedroom apartment for rent in the same location.
The post describes it as an oceanfront property on a private road with a full kitchen and full bathroom. Finkelson advertises that the apartment is only $2,000 per 14 nights and that those interested should contact him.
Section 8 funds are usually direct deposited into the account of a landlord, and families who receive these benefits make up the difference in their rent.
This investigation was a joint effort between the FBI, the Department of Housing and Urban Development, and the Internal Revenue Service.
Finkelson’s initial appearance in San Francisco federal court has not been scheduled.
