ALBUQUERQUE, N.M.—The former executive director of the Gallup Housing Authority has been indicted for alleged fraud.

New Mexico prosecutors said Wednesday that a federal grand jury has indicted 37-year-old Danny Garcia for allegedly engaging in a scheme to defraud the U.S. Department of Housing and Urban Development out of more than $100,000.

They say 61-year-old Michael Virruso also was indicted in the 12-count indictment filed late Tuesday.

The indictment charges Garcia and Virruso with one count of conspiracy and eight counts of making false claims against the federal government.

It also charges Garcia with three counts of theft from programs receiving federal funds.

Authorities say Garcia and Virruso allegedly engaged in a scheme to steal HUD funds earmarked for the Gallup Housing Authority from June 2010 through October 2012.


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