Defendants Obtained $750,000 from Relief Programs Intended for Residents Displaced by the
Superstorm
A criminal complaint was unsealed today in federal court in Brooklyn charging
Nagwa Elsilimy and Ahmed Arafa with fraud by making false statements to the Federal
Emergency Management Agency (FEMA) and the United States Department of Housing and
Urban Development (HUD) in connection with their obtaining more than $750,000 in disaster
relief from New York City’s Build It Back program (BIB) and FEMA in the aftermath of
Hurricane Sandy. The defendants allegedly misrepresented that a home in Staten Island, which
they had abandoned months before the storm, was their primary residence at the time the
superstorm devastated New York and New Jersey. The defendants unlawfully obtained over
$750,000 in aid intended for people displaced by the storm. Elsilimy was arrested this morning,
and her initial appearance is scheduled for this afternoon before United States Chief Magistrate
Judge Roanne L. Mann.
The charges were announced by Bridget M. Rohde, Acting United States
Attorney for the Eastern District of New York, Christina Scaringi, Special Agent-in-Charge,
United States Department of Housing and Urban Development Office of Inspector General
(HUD OIG), Mark Tasky, Special Agent-in-Charge, Department of Homeland Security Office of
Inspector General (DHS OIG), Washington Field Office, and Mark G. Peters, Commissioner,
New York City Department of Investigation (DOI).
“Taking advantage of funds intended for disaster relief misappropriates taxpayer
dollars, reduces monies available to true victims and erodes public confidence in relief
programs,” stated Acting United States Attorney Rohde. “This Office will continue to work with
our law enforcement partners to root out such alleged illegal behavior.”
“The Defendants’ alleged conduct is disturbing, especially during this time when
the public is reminded of the devastation that historic storms leave with thousands of victims,”
stated HUD OIG Special Agent-in-Charge Scaringi. “The taxpayer has no tolerance for those
who would steal from Federal public aid – the sole goal of which is to help victims rebuild and move forward with their lives. We, along with our federal and state law enforcement and
prosecution partners, will continue to aggressively pursue fraudsters who engage in such
unacceptable behavior to both the public and their neighbor.”
“DHS OIG will continue to target fraudsters who seek to turn the tragedy of a
natural disaster into an opportunity of personal gain at the expense of taxpayers,” stated DHS
OIG Special Agent-in-Charge Tasky. “Today’s arrest is a tangible step of our commitment with
our law enforcement partners who work tirelessly to identify, investigate, and pursue prosecution
of fraudulent activities that undermine federal programs.”
“Hurricane Sandy ravaged shoreside communities and displaced hundreds of
thousands of New Yorkers from homes made uninhabitable by the storm,” stated DOI
Commissioner Peters. “While homeowners applied for aid to rehabilitate and rebuild, these
defendants were capitalizing on the destruction, collecting benefits to which they were not
entitled and exploiting federal funds to restore property they didn’t live in, according to the
charges. DOI has monitored the City’s rebuilding effort since its inception, and will continue to
investigate the programs and those dishonest homeowners who take advantage of finite disaster
relief funds.”
According to the complaint, in the days and months following Hurricane Sandy,
which struck New York and New Jersey on October 29, 2012, the defendants obtained and
attempted to obtain federal funds appropriated for Sandy disaster relief by submitting material
misrepresentations in their applications for disaster relief. Specifically, the defendants falsely
represented that a home they had abandoned before the storm was their primary residence at the
time Sandy hit the Eastern District of New York. The defendants had been residing at a different
address since at least March 2012, and, at the time Sandy struck Staten Island, the defendants’
alleged primary residence was vacant, and had been vacant for at least seven months. Evidence
obtained in the investigation suggests that the defendants fraudulently obtained federal aid
totaling more than $750,000 based upon their misrepresentations in applications to FEMA, HUD
and BIB, the New York City program established with federal funds to aid residents in
rebuilding private homes damaged or destroyed due to Hurricane Sandy.
The charges in the complaint are merely allegations, and the defendants are
presumed innocent unless and until proven guilty. If convicted, the defendants face a statutory
maximum of 30 years’ imprisonment for major disaster relief fraud and five years’ imprisonment
for making false statements to a federal agency,
The Defendants:
NAGWA ELSILIMY
Age: 59
Staten Island, NY
AHMED ARAFA
Age: 59
Staten Island, NY
E.D.N.Y. Docket No. 17-MJ-805
