Worcester man indicted on rental aid fraud

Prosecutors say COVID-era assistance program was exploited using stolen identities

WORCESTER—A Worcester man has been indicted in federal court on charges that he used stolen identities — including that of a deceased person — to fraudulently collect more than $137,000 in emergency rental assistance during the COVID-19 pandemic.

According to a federal announcement, Felix Mercedes-Castillo, 35, a Dominican national lawfully residing in Worcester, is charged with five counts of theft of government money and three counts of aggravated identity theft. He is currently serving a state prison sentence for unrelated offenses and is expected to appear in federal court in Worcester at a later date.

The charges stem from applications submitted to the Emergency Rental Assistance Program, a federally funded initiative created by Congress in 2021 to help low-income households pay rent after pandemic-related financial hardship.

Prosecutors allege that between October 2021 and August 2022, Mercedes-Castillo submitted fraudulent applications using other people’s personal information, including Social Security cards, falsely claiming the individuals were landlords and tenants in Massachusetts in need of assistance. Court records state that none of the individuals listed qualified for the aid, and one person identified as a landlord had been dead for more than a year at the time the application was submitted.

As a result of the alleged false claims, emergency rental assistance checks were issued and mailed, and Mercedes-Castillo is accused of collecting and keeping the funds.

The case was announced by federal prosecutors and investigated by the FBI and Homeland Security Investigations, with prosecution being handled by the U.S. Attorney’s Office in Worcester.