‘Robin HUD’ Enters Guilty Plea in Theft

A woman dubbed “Robin HUD” for admitting that she stole millions of dollars from federal housing sales and saying she gave the money to the poor pleaded guilty Monday to federal theft and tax evasion charges.

Marilyn Louise Harrell, 46, a former real estate agent from Waldorf, Md., smiled throughout a hearing in U.S. District Court, where she pleaded guilty to charges that she stole money from the Housing and Urban Development Department and lied on her tax returns and to federal officials.

“I thought I’d get caught a long time ago,” Harrell said after the hearing. “I’m sorry for what I did. I figured I was history and would help as many as I could before I went down.”

Harrell had originally pleaded not guilty. But she said she chose a plea agreement after new tax evasion charges were added, and to avoid calling poor people to testify on her behalf.

Harrell said Monday that she would prove at her April 20 sentencing that she stole only $4.75 million--not the more than $6 million that prosecutors now say she took in what Atty. Gen. Dick Thornburgh has called the largest theft of federal funds by an individual.

Under the agreement, Harrell pleaded guilty to one count each of stealing government property and failing to report income for taxes. In return, prosecutors dropped two other tax counts, two counts of lying to HUD officials and one count of lying on a bank loan application.

Though Harrell faces a maximum 13 years behind bars and $500,000 in fines, Assistant U.S. Atty. Gary Jordan said he will recommend a sentence of three to four years without parole.

Harrell said after the hearing: “I’m not worried about prison. Some of the nicest people I know went to prison.”

Federal prosecutors alleged that Harrell, as a private escrow account agent for HUD, raked off the department’s money from the sale of HUD properties. Less than $1 million has been recovered, and prosecutors said Harrell would not be able to make restitution.

Harrell contended in congressional testimony that nearly all the money went to help the poor. Prosecutors say she was her largest charity, although they acknowledge that she gave some money away.

Harrell said she hopes the public and the court will understand that she never bilked the poor, taking only from mismanaged HUD programs. “The program I diverted funds from was not a program that helped the poor. It was property disposition,” Harrell testified.

Supporters who said they had benefited from Harrell’s largess attended the hearing. One held up a giant card, decorated with balloons, reading: “Marilyn, We’re Remembering You.”

Charlotte Chepaitis, who said she runs a Baltimore homeless shelter, said Harrell helped provide incidentals for the facility, but declined to give details. “Jesus said to do your alms in secret, and that’s just what Sister Marilyn did,” Chepaitis said.

“And like Jesus said, she cried out today for forgiveness. Now there are millions praying for her.”