State officials say a pair of siblings stole tens of thousands of dollars from a pandemic-era rent relief program meant to help New Yorkers avoid homelessness.
Denesh Melwani, 58, of Woodstock, and Shaleen Mahtani, 56, of Paramus, New Jersey, were arraigned on a sealed indictment accusing them of stealing $90,000 in Emergency Rental Assistance Program funds, according to the state comptroller’s office.
Prosecutors allege the pair submitted false information to the state Office of Temporary and Disability Assistance to fraudulently obtain the money. The siblings face charges of first-degree offering a false instrument for filing, second-degree grand larceny, and second-degree money laundering.
“Mahtani and Melwani allegedly tried to scam a program out of money meant to help New Yorkers in need of housing assistance during the COVID-19 pandemic,” State Comptroller Thomas P. DiNapoli said.
Authorities said the siblings jointly purchased a Brooklyn condominium for $1.6 million in 2018. Investigators allege that Melwani later transferred the property to Mahtani, then claimed to be her tenant when applying for emergency rent relief.
Prosecutors say the defendants falsely reported that Melwani owed back rent dating from March 2020 through August 2021. Based on those claims, Mahtani allegedly received a $90,000 payment through the program.
Investigators say the siblings then moved the money through multiple financial transactions to conceal its source and used the funds for personal expenses.
Albany County District Attorney Lee C. Kindlon said the case involved defrauding a program designed to help people struggling during the pandemic. State Police Superintendent Steven G. James said the investigation relied on cooperation among multiple agencies.
Both defendants were released under probation supervision with electronic monitoring and are scheduled to return to court on Jan. 26. Authorities stressed that the charges are accusations and that the defendants are presumed innocent unless proven guilty.
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