Joe Lewis Jefferson, 49, of Nashville, faces up to 31 years in federal prison after pleading guilty Monday for his role in a sham landlord scheme that defrauded struggling North Carolina residents during the COVID-19 pandemic.

His wife, Danyael Davis Jefferson, pleaded guilty to conspiracy to commit mail fraud on March 27, the U.S. Attorney’s Office for the Eastern District of North Carolina said.

According to information presented in court, Jefferson recruited employees to pose as landlords of properties in eastern North Carolina. They prepared rental assistance applications on their behalf and submitted those documents to the North Carolina Housing Opportunities and Prevention of Evictions program, known as NC HOPE, an online initiative designed to provide assistance for up to 15 months to people facing eviction and homelessness during the pandemic.

Once approved, NC HOPE sent the proceeds to addresses managed by Jefferson. Prosecutors say he then shared the funds with his nominees – a ruse that yielded a total of 44 applications and about $279,000.

U.S. Justice of the Peace Robert T. Numbers II accepted Jefferson’s confession. U.S. District Judge James C. Dever II will announce his sentence at a hearing scheduled for later this year.

The IRS Criminal Investigation Division and the U.S. Postal Inspection Service investigated Jefferson’s alleged abuse of the Eviction Prevention Program. Assistant U.S. Attorney Toby Lathan is overseeing his prosecution.