Chicago Construction News staff writer
Ryan Ross, a former Chicago Housing Authority property director was charged in federal court with steering more than $4.8 million in public housing construction contracts in exchange for more than $421,000 in kickbacks, according to an indictment returned Tuesday.
Charges came less than two years after he was fired for breaking agency procedures, including one that cost CHA more than $19,000 in “unnecessary expenses” for construction work.
The indictment alleges Ryan Ross, 50, of Bolingbrook, Ill., used his position in the CHA’s Property and Asset Management Department in 2023 and 2024 to steer contracts to Bell’s Better Buildings Inc., a Chicago firm that did business as Twenty Eleven Construction Inc., and an affiliated company controlled by Vanessa Rhodes, 47, of Chicago.
In exchange, Ross allegedly received cash and other benefits from Rhodes while using his authority to fraudulently award construction, renovation and related work, according to the indictment. Prosecutors said the scheme involved falsified proposals, scopes of work and invoices submitted to the CHA to conceal the arrangement.
Ross and Rhodes also allegedly caused Rhodes’ husband to falsely present himself as an employee of the affiliated company who would perform work on CHA properties, according to the indictment.
Federal prosecutors said Ross used some of the alleged kickback money to buy a vehicle and pay for home repairs and renovations.
The indictment charges Ross and Rhodes with eight counts of honest services fraud. Each count carries a maximum penalty of 20 years in federal prison. Arraignments have not been scheduled.
The indictment was announced by U.S. Attorney Andrew S. Boutros of the Northern District of Illinois; Machelle Jindra, special agent in charge of the U.S. Department of Housing and Urban Development Office of Inspector General; and Kathryn Richards, inspector general of the Chicago Housing Authority.
Assistant U.S. Attorneys Prashant Kolluri and Hanna Helwig are prosecuting the case.
“Corruption in the awarding of public housing contracts undermines trust, distorts competition, and diverts already scarce resources,” Boutros said in a statement, adding that public funds must be protected to ensure residents receive needed housing assistance.
HUD OIG Special Agent in Charge Machelle Jindra said the alleged scheme “corrupted the fair and competitive contracting process” and CHA Inspector General Kathryn Richards said the defendants “hijacked a program meant to repair and preserve Chicago’s already scarce public housing,” and praised investigators for exposing the alleged fraud.
