Department of Housing and Urban Development executive sentenced to prison for taking pay while going out

KANSAS CITY (BNO NEWS) — A Department of Housing and Urban Development (HUD) executive, earning $141,000 a year, was sentenced to twelve months in prison for taking pay while spending time at casinos and tennis courts, prosecutors said Monday.

Herman S. Ransom, 53, from Olathe, Kansas, collected $46,925 in pay for hours of work, while he was actually going to casinos and/or playing tennis. Federal investigators performed surveillance of Ransom during 32 separate days, and after compiling and analyzing records from the Overland Park Racquet Club and casinos in Kansas City, it was determined that he was paid the aforementioned amount of money between 2001 and 2007.

Ransom, serving as Hub Director of HUD’s office in Kansas City, was responsible for supervising approximately 89 employees in six different cities. He also oversaw the Office of Multifamily Housing for Kansas, Missouri, Iowa, Nebraska and Oklahoma.

As a GS-15 level supervisor, Ransom’s working hours were set at 8 a.m. to 4:30 p.m., reporting that he worked 40 hours a week when in fact he knew he had taken personal time off during work hours. The false reports were sent electronically from Kansas City, to the National Finance Center in New Orleans, Louisiana for processing and payment.

Ransom pleaded guilty on 10 counts of wire fraud and 10 counts of theft of public funds. Following his twelve months and one day prison term, Ransom will serve two years of supervised release. He was also ordered to pay a $2,000 special assessment fee and $46,925 in restitution to HUD.

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