Executive Summary
Laws and Precedent
JACKSONVILLE, FL – A former employee of the Palatka Housing Authority (PHA), Thomas B. Hoffman, 45, of Florahome, pleaded guilty on Friday, September 19, 2025, to theft of federal funds totaling $155,706. Hoffman faces a maximum sentence of 10 years in federal prison, along with forfeiture of the stolen amount and restitution to the victim. A sentencing date has not yet been scheduled.
Details of the Scheme
According to the plea agreement, Hoffman, who was responsible for information technology and accounts payable at the PHA, orchestrated a scheme to defraud the agency. The PHA receives federal funding from the U.S. Department of Housing and Urban Development (HUD) to manage public housing programs in Palatka and surrounding areas.
An audit conducted in 2025 uncovered an unapproved vendor named “Data Max” that had received approximately 48 fraudulent payments from the PHA’s general account. These payments, totaling $155,706, were issued between July 2023 and February 2025.
Investigation and Confession
A federal investigation subsequently revealed that Hoffman owned and controlled Data Max and its associated corporate bank account. Investigators determined that Hoffman had caused these fraudulent payments to be issued and then used the funds for his personal benefit.
Evidence gathered during the investigation included bank surveillance footage, which showed Hoffman cashing PHA checks made out to Data Max on multiple occasions. As part of his plea agreement, Hoffman consented to forfeit the $155,706, which represents the proceeds of the theft, and to pay restitution to the PHA.
Official Statements
Acting Special Agent in Charge Bozena Schrank with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), condemned Hoffman’s actions. “Thomas Hoffman took advantage of the position of trust he held to oversee federal funds intended to provide housing for our most vulnerable community members by stealing over $155,000 and converting it to his own personal use,” Schrank stated.
Schrank added that by creating a fictitious vendor, Hoffman also eliminated opportunities for legitimate companies to compete for contracts and provide services to the Palatka Housing Authority. She affirmed HUD OIG’s commitment to collaborating with law enforcement partners to hold individuals accountable who defraud HUD programs and low-income housing communities.
Case Prosecution
The case was investigated by the HUD – Office of the Inspector General. Assistant United States Attorney David B. Mesrobian is prosecuting the case for the government.
