Former D.C. Housing Authority Employee Pleads Guilty in $15 Million Mortgage Fraud

Richard Cunningham, 55, a former D.C. Housing Authority employee turned real estate developer in Washington, pleaded guilty June 3 in U.S. District Court for the District of Columbia to charges stemming from a mortgage fraud scheme that obtained more than $15 million from private lenders.

The plea, announced by U.S. Attorney Jeanine Ferris Pirro, resolves Cunningham’s liability in the case. Federal prosecutors charged that Cunningham used his prior position at the D.C. Housing Authority to facilitate fraudulent mortgage applications, though the exact mechanics of how his government tenure factored into the scheme were not detailed in the release.

The fraud targeted private mortgage lenders and resulted in more than $15 million in losses. The D.C. Housing Authority itself was not named as a defendant or co-conspirator.

Sentencing has not yet been scheduled. Under standard federal procedure, the guilty plea requires the court to impose a sentence that accounts for the $15 million loss amount, any acceptance of responsibility, and Cunningham’s criminal history. The U.S. Attorney’s Office for the District of Columbia will submit a sentencing memorandum outlining its position on the appropriate term.

This marks the latest federal prosecution involving individuals who moved from D.C. public housing roles into private real estate development. The D.C. Housing Authority administers federal and local programs that provide affordable housing to more than 20,000 low-income residents and vouchers in the District.

Federal investigations into housing-program fraud routinely examine whether former agency employees exploited knowledge of program rules, property inventories, or lender relationships after leaving government service.

The case was brought in the U.S. District Court for the District of Columbia, the venue that handles all federal criminal matters arising in the capital. No additional co-defendants are mentioned in the Department of Justice announcement.