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Evergreen Reporter

Wednesday, November 6, 2024

Helena agent pleads guilty to omitting vital lead disclosures for veteran housing

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Merrick B. Garland, Attorney General | https://www.justice.gov/

Merrick B. Garland, Attorney General | https://www.justice.gov/

A real estate agent in Helena has admitted to failing to provide mandatory lead-based paint disclosures, exposing veterans and their families to hazardous lead levels. Melanie Ann Carlin, 54, of Clancy, pleaded guilty to a felony charge of knowing endangerment. The U.S. Attorney's Office reported that this offense could result in up to 15 years in prison, a $250,000 fine, and at least three years of supervised release.

Chief U.S. District Judge Brian M. Morris presided over the arraignment and will determine Carlin's sentence after reviewing the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for March 4, 2025. Carlin remains free pending further proceedings.

Court documents reveal that between September 2019 and September 2021, Carlin did not provide required lead-based paint disclosures at Freedom’s Path Fort Harrison, putting individuals at risk of serious harm due to significant lead exposure. This affected low-income veteran families residing in these rental units.

Carlin owns 406 Properties, Inc., a property management service in Helena with over 26 years of experience in real estate. In 2018, she began managing properties at Freedom’s Path Fort Harrison intended as affordable housing for military veterans. Despite being informed by the Montana Department of Commerce about potential lead issues due to the buildings' age—constructed around 1895 and 1905—Carlin inaccurately stated on official forms that lead-based paint disclosures were unnecessary because the properties were supposedly built after January 1, 1978.

In June 2019, despite attending meetings where peeling lead-based paint was discussed, Carlin continued signing forms falsely indicating no presence of lead or claiming post-1978 construction dates for the units.

Further allegations indicate that in December 2020, Carlin failed again to provide a necessary disclosure to a veteran resident at Freedom’s Path Fort Harrison. By September 2021, an incident involving an infant ingesting paint chips resulted in confirmed high blood lead levels requiring medical intervention.

When questioned by federal agents, Carlin acknowledged her awareness of disclosure requirements but admitted none were given at Freedom’s Path Fort Harrison rentals. A subsequent property management company later rectified this omission by issuing proper disclosures.

The case is prosecuted by the U.S. Attorney’s Office following investigations conducted by multiple agencies including the Environmental Protection Agency’s Criminal Investigation Division and others from Veterans Affairs and Housing and Urban Development departments.

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