AG: Mom, son scams HUD out of thousands

SMITHVILLE, Texas (KXAN) - A mother and son duo, who tried to defraud the public housing program, have been indicted on theft and organized criminal activity charges.

The Texas Attorney General's Office said Brenda Schroeder, 62, of Smithville, actually served as the executive director of the Smithville Housing Program from 2006 to May 2012.

According to authorities, during her employment, Schroeder illegally disbursed federal housing payments to her son, Wendall Bennett, 43, falsely claiming he was a landlord and therefore eligible to receive federal subsidies as a low-income housing provider.

Schroeder's son, who lives almost 300 miles away from Smithville, wasn't the only person involved.

The investigation also showed Schroeder illegally falsified documents, forged signatures and violated Section 8 housing regulations in order to get subsidized housing for at least two dozen of her relatives, the AG's office said.

Because so many of Schroeder's and Bennett's relatives were involved, authorities said the duo would rotate their family members in and out of the system so that federal disbursements would vary from month-to-month.

The U.S. Department of Housing and Urban Development's Office of Inspector General referred the case to the Texas Attorney General's Office in April 2012.

Schroeder is charged with aggregated first-degree felony theft by a public servant -- more than $250,000 -- submitting fraudulent credit applications and engaging in organized criminal activity.

Bennett is charged with felony theft and engaging in organized criminal activity charges.