United States Attorney Richard B. Roper
Northern District of Texas

DARREN REAGAN SENTENCED IN DALLAS HOUSING AUTHORITY
THEFT OF PUBLIC MONEY CASE

DALLAS — Darren Reagan, 48, who was convicted at trial in June on all five counts of an indictment charging him with theft of public money, was sentenced today to 12 months in federal prison, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. At this morning’s sentencing hearing, U.S. District Judge Barbara M.G. Lynn also ordered that Reagan pay $41,232 restitution.

Reagan, who is currently in federal custody, is also a defendant in the Dallas City Hall corruption investigation case, charged with conspiracy to commit extortion, two counts of extortion by public officials, one count of conspiracy to commit money laundering and four counts of tax evasion. That case is scheduled to go to trial in January 2009.

At trial, the jury found that from October 1, 2002, through September 1, 2007, Reagan knowingly stole approximately $45,000 in rental housing assistance payments from the Dallas Housing Authority (DHA) in connection with the rental of certain property to his mother-in-law, Leatha Kirven. Reagan falsely claimed to the DHA that he had no blood, marital, or other familiar relationship to Ms. Kirven, and as such, caused DHA to pay him housing assistant payments to which he was not entitled.

Mrs. Kirven testified in a videotaped deposition taken from her hospital room that she knew that when she signed up for the Section 8 housing assistance with Mr. Reagan, that she knew it was against the rules. She also testified that she told federal agents, when questioned by them two years ago, that she knew it was wrong.

Darren Reagan testified in his own defense that he wasn’t aware of the rules prohibiting him from renting a Section 8 house to a relative and that he didn’t have time to read the fine print on the day he went with his elderly mother-in-law to the DHA so that should could sign up as a Section 8 tenant in a Red Bird area house he and his now-estranged wife owned.

U.S. Attorney Roper praised the investigative efforts of HUD-OIG and the FBI. The case was prosecuted by Assistant U.S. Attorneys Marcus Busch and Sarah Saldaña.

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