T
he City of Chicago is taking legal action against Ilyas Lakada, a local landlord and licensed attorney who allegedly submitted fraudulent applications for Covid-19 emergency rental assistance funds. According to the lawsuit filed by Mayor Brandon Johnson, Lakada and his co-defendants used forged documents and fake rent amounts to obtain over $200,000 in aid from the city's Emergency Rental Assistance Program (ERAP). The program was established in 2020 and 2021 to help low-income tenants and landlords cover rent and utilities during the economic strife caused by the pandemic.

    Lakada and his co-defendants allegedly formed a property management company called HAM Management to submit fraudulent applications to the city. The lawsuit claims that Lakada used forged documents and fake rent amounts to obtain over $200,000 in aid from the city's ERAP. The city's Corporation Counsel Mary B. Richardson-Lowry has asked a Cook County Circuit Court judge to order the defendants to pay back the funds along with penalties, legal fees, and triple damages.

    The ERAP provided eligible Chicagoans with up to 18 months of missed rent and utility payments, as well as up to three months of future rent and utilities. The city's investigation found that HAM Management was not affiliated with any of the properties included in Lakada's applications. As a city employee, Lakada made just under $109,000 in 2020, which was higher than the salary of 84% of employees in his department.

    The lawsuit against Lakada and his co-defendants highlights the need for strict penalties to deter fraudulent activities and maintain trust in vital resources for vulnerable communities. The city's efforts to combat fraudulent activities aim to ensure that essential housing resources are used to provide relief in times of crisis rather than being misused at the expense of those in need.