Try digitalPLUS for 10 days for only $0.99
Breaking news

Developer sold software to Housing Authority, then used it to steal

A Joppa man was sentenced Tuesday to nine months in prison for stealing funds from the Housing Authority of Baltimore and other public housing agencies across the country through software that his company developed and maintained for the agencies' use, prosecutors said.

Jack G. Stout, 65, "illegally transferred funds from public housing authorities in Baltimore and in other states" using a computer program called Public Housing Authority Software that his company, Modern Software Technology Inc., developed and maintained, according to a statement Tuesday from Maryland's U.S. Attorney's Office.

Housing offices — more than 50 nationwide — used the software to "organize payroll, personnel and tenant accounting information," the statement said, and Stout was able to log in to each agency's system to "provide custom programming, software training, system support and consulting services."

Beginning in February 2010, Stout began replacing the bank information of agency customers with the bank information of him and a friend, the statement said. He then made the fraudulent transfers in the customers' names but diverted the funds for his own use.

Stout stole at least $30,000 in the scheme, the U.S. Attorney's Office said.

Once released from prison, Stout will serve two years of supervised release, including six months of home detention.

Copyright © 2016, The Baltimore Sun