A Nashville man considered to be the ringleader of a fraudulent emergency rental scheme during the COVID-19 pandemic that included two men from Halifax County, was sentenced to 48 months in prison Wednesday, according to the office of United States Attorney for the Eastern District of North Carolina Michael F. Easley Jr.

Joe Lewis Jefferson, 50, must also serve three years of supervised release following the completion of his sentence.

In August Jefferson pleaded guilty to one count of conspiracy to commit mail fraud and one count of failure to file a tax return.  

As part of the judgment, Jefferson was also ordered to pay $323,824 in criminal restitution to the U.S. Department of Treasury.

According to information presented in court, Jefferson recruited others to falsely pose as landlords for properties located in eastern North Carolina.  

In the names of these nominee landlords, Jefferson prepared and submitted fraudulent North Carolina Housing Opportunities and Prevention of Evictions — NC HOPE — loan applications for emergency rental assistance.  

When the applications were approved, NC HOPE mailed checks to addresses controlled by Jefferson. Jefferson traveled with the nominee landlords to area banks to negotiate the checks and split the proceeds.  

Jefferson and his co-conspirators were responsible for the submission of at least 44 fraudulent applications for rental assistance, resulting in the disbursement of approximately $279,000.

In September Timothy Kelvin Harveyof Roanoke Rapids was sentenced to 18 months in prison for his part in the scheme. He pleaded guilty to one of the eight counts against him — a count of conspiracy to commit mail fraud.

He will have to serve three years of supervised release following the completion of his sentence, pay a $100 special assessment and pay restitution in the amount of $51,185.

Arkino Williams of Enfield awaits a March 10 arraignment in his case, according to federal court records.

Williams is charged with four counts of mail fraud and one count of conspiracy to commit mail fraud.

The NC HOPE Program administered federal COVID-19 relief funds and provided emergency rental assistance to North Carolina renters who faced eviction and homelessness during the pandemic.  

The program allowed renters to submit an online application to apply for rental assistance.  

If approved, the program paid the tenant’s rent, in checks sent directly to the landlord, for up to 15 months of overdue or future rent payments

District Judge James C. Dever III sentenced Jefferson.

The investigation was conducted by IRS-Criminal Investigations and the U.S. Postal Inspection Service.

Assistant U.S. Attorney Toby Lathan prosecuted the case.