A Bedford Borough Council Fraud Investigation has helped identify a £15,000 social housing fraud after a former housing officer was found to be subletting his social housing property.
Emmanuel Damilola Olorunfemi, 31, who now lives in Pinner, appeared before Luton Magistrates’ Court on Tuesday, 7 July, and pleaded guilty to two offences under the Fraud Act 2006 and the Prevention of Social Housing Fraud Act 2013.
During the period under investigation, Olorunfemi was working as a housing officer for a local authority in London, which gave him unique knowledge of social housing rules and insight into the implications of tenancy fraud.
Olorunfemi held the tenancy of a property in Hammonds Drive, Peterborough, under a Rent to Buy Scheme operated by housing association bpha, which allows tenants to rent a property at a below-market rent with the option to buy it in future.
He was required to use the property as his only home and was prohibited from sub-letting it or parting with possession.
But Bedford Borough Council’s Fraud Investigation Service, working as part of its partnership with bpha, found that Olorunfemi had moved out of the property while continuing to hold the tenancy.
In addition, he had sublet it to a family who paid rent of up to £980 a month through a private letting arrangement.
Profiting from subletting
Bank records showed the rental income was paid into Olorunfemi’s personal bank account, while the rent owed to bpha fell into significant arrears.
Investigators calculated that he profited by £14,692 from the subletting, whilst also building up rent arrears of over £6,000.
In mitigation, the court heard that the offending occurred in the aftermath of the death of Olorunfemi’s father.
Following his father’s death, he relocated to live with his mother in order to support her, both emotionally and financially, during this difficult period.
Nonetheless, the magistrates told Olorunfemi that the income was invested in an ISA.
“This was not an offence where the proceeds were used to support a family, and there was a substantial income made from the offence,” they said.
Sentencing
Olorunfemi was sentenced to 18 weeks’ imprisonment, suspended for 18 months, and ordered to carry out 250 hours of unpaid work.
The court also imposed an Unlawful Profit Order requiring him to repay the full £14,692 gained from the offence, along with costs of £2,830 and a victim surcharge of £154, a total of £17,676.
A spokesperson for Bedford Borough Council said: “Social housing is intended for people who are most in need of secure, affordable accommodation.
“By moving out and illegally subletting this property, Olorunfemi denied a family on the waiting list of a secure place they could call home.
“Olorunfemi was a housing officer who had a clear and professional knowledge of the rules he chose to break and the impact it would have.
“We will continue to work closely with our partners, including bpha, to identify and pursue tenancy fraud wherever it occurs.”
