2 USC Residents Indicted In Alleged House-Flipping Scheme

UPPER ST. CLAIR, PA —A federal grand jury has indicted two township residents in an alleged house-flipping scheme that involved them defrauding the Department of Housing and Urban Development.

Acting U.S. Attorney Stephen R. Kaufman on Thursday announced the indictments against J. Reed Pirain, 45, of Renee Vasilko, 48. They face conspiracy and fraud charges.

According to the indictment, Pirain and Vasilko falsified statements by bidding on and purchasing property as intended homeowners, only to renovate and sell the property for profit. The pair allegedly took advantage of a HUD program that encourages families to bid on, and then live in, foreclosed properties before the sale process opens to real estate investors intent on flipping the residences.

Abusing the program like Pirain and Vasilko allegedly did allowed them to potentially outbid other families who otherwise would purchase the homes and live there; it also allowed them to bid on foreclosed homes before other investors were eligible.

If convicted, Pirain and Vasilko face up to five years in prison and a fine of as much as $250,000.