A man from the District of Columbia pleaded guilty Wednesday to conspiring to commit bank fraud as part of a plan to gain about $1.4 million from the Baltimore Housing Authority, prosecutors said.
Keith Eugene Daughtry, 50, allowed his identity to be used so that co-conspirators could set up a fake company that hid funds siphoned from a housing authority bank account, according to a statement from the Maryland's U.S. Attorney's Office. Daughtry also used some of the stolen funds.
Prosecutors allege that during 2010, a Baltimore landlord and convicted bank robber named DaRen Kareem "D" Gadsden put stolen funds, which he overdrew from the housing authority, into a bank account opened under Daughtry's name.
Because Gadsden was authorized to rent to low-income tenants, he had access to housing authority accounts so that he could withdraw the amount owned to him in monthly rent, an authority spokesperson told The Sun last month. Gadsden used that privilege to draw more money than he was owed, then transferred that money into the account in Daughtry's name, prosecutors said.
The two men and other co-conspirators then withdrew the funds for their personal use, according to the government.
Daughtry faces a maximum of 30 years in prison and a fine of $1 million or more. He is scheduled to be sentenced in May.
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