Family members of a woman who allegedly helped fund the purchase of a Great Sacandaga Lake property, among other assets, with pandemic relief dollars have so far agreed to pay the federal government nearly $305,000.
Albany resident Debra Hackstadt, 69, was sentenced to 16 months in prison last year for fraudulently tapping more than 30 government-backed loans during the COVID-19 pandemic and distributing some of the money to family members and . She was ordered to pay $1,696,324 in restitution.
Two lawsuits have since been filed, ordering family members to dole out claims and forfeit assets such as a small slice of property owned by Hackstadt’s son and daughter-in-law in the Great Sacandaga Lake area. Saratoga County property records show that the two own some land on South Shore Road in Edinburg.
So far, $190,000 of the settlement funds requested by the U.S. Northern District of New York has been tendered. An additional $114,816 is still pending from Danielle Hackstadt, who received two of her mother’s loans.
“In addition to criminal prosecutions, we can file False Claims Act lawsuits – with the potential for treble damages – and asset forfeiture actions,” said U.S. District Attorney Carla Freedman in a statement. “When appropriate, we can also seek recovery from people who financially benefited from fraud even if they did not commit fraud themselves.”
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