Ex-HUD employee pleads guilty to fraud scheme

A former U.S. Department of Housing and Urban Development employee has pleaded guilty to stealing $843,000 in government funds in federal court in Washington.

Fifty-three-year-old Brian Thompson of Washington, a former loan guarantee specialist, pleaded guilty to a federal wire fraud charge on Thursday.

While working for HUD's Office of Loan Guarantee for Native American programs, Thompson was responsible for reselling defaulted properties. Prosecutors say between June 2013 and March 2014, Thompson diverted $843,000 from the real estate sales into his personal bank accounts. Thompson also submitted false settlement statements listing fabricated sales prices.

Prosecutors say Thompson could face between 33 and 41 months in jail, a fine of up to $75,000 and an order to pay restitution. Thompson's sentencing is scheduled for Jan. 7.