A former Hempstead Village official is facing federal charges for her alleged involvement in a kickback scheme.

Officials say Stacey Stackhouse, the former head of the Hempstead Village Housing Authority, took advantage of her position and allegedly conspired to steal more than $500,000 from the Housing and Urban Development program.

Stackhouse was the head of the housing authority in 2011 and was in charge of more than 500 affordable housing units at the time.

Prosecutors says a roof on one of the buildings at the village-owned Clinton Court apartment complex needed to be replaced. They say Stackhouse never put the job up for bid, as required by law. Instead, officials say Stackhouse gave the job to an "underqualified" construction company run by co-defendants Michael Lambros and James Alimonos, who claimed the job would cost roughly $275,000 to complete.

According to court documents, Alimonos' company never did any of the work. Instead, they say he hired another company to do it for far less money than he already received from the housing authority. Prosecutors say Alimonos pocketed the difference and then distributed the money to other people, including Stackhouse and Lambros.

Demetrious Kaouris, of Plainview, was also arrested in connection to the scheme.

Prosecutors say Stackhouse and Alimonos pulled the same scam for two additional village housing authority projects between 2011 and 2013.



Each suspect could face up to 20 years in prison if convicted.