Helena Real Estate Agent and Property Manager Sentenced for Failing to Provide Lead-Based Paint Disclosures

A Helena real estate agent and property manager has been sentenced for failing to provide lead-based paint disclosures as mandated for veterans residing in housing at Fort Harrison in Helena. This negligence led to the exposure of veterans and their families to significant levels of lead. On the previous day, she was sentenced to three years of felony probation and fined $150,000, as reported by U.S. Attorney Kurt Alme in a press release. Melanie Ann Carlin, aged 54, of Clancy, entered a guilty plea in November 2024 for one felony count of knowing endangerment. Additionally, Mold Wranglers, Inc., a company based in Kalispell that specializes in hazardous material mitigation, received a sentence of two years of probation, a $50,000 fine, and an order to pay $348,000 in restitution to the U.S. Department of Veterans Affairs. This restitution is related to the company's submission of false payment claims to a federal agency, falsely asserting that lead paint abatement had been conducted at Freedom’s Path Fort Harrison when, in fact, it had not. The company also pleaded guilty to one count of conspiracy under the False Claims Act in November 2024. Chief U.S. District Judge Brian Morris presided. “We take seriously the obligation to ensure the safety of our veterans and their families and will continue to work with our agency partners to hold accountable individuals like Melanie Carlin and businesses like Mold Wranglers who cut corners and jeopardize their safety in order to turn a profit. I want to thank AUSA Ryan Weldon for his work on this case, as well as the investigators from HUD, the VA, and the EPA,” U.S. Attorney Alme said in the press release. “Melanie Carlin engaged in dangerous behavior by failing to provide lead-based paint disclosures for housing units which resulted in low-income veteran families and their children unknowingly being exposed to significant levels of lead,” said Special Agent in Charge Machelle Jindra with the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG). “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that threaten the integrity of HUD programs and our most vulnerable community members.” “The VA OIG is dedicated to ensuring that veterans and their families receive VA services in a safe environment,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This sentencing reinforces that those who do not uphold safety and integrity standards will be held accountable.” “The defendant placed our military veterans and their children in danger by callously disregarding reporting and disclosure requirements for lead-based paint in rental properties. Lead poisoning can have catastrophic effects on young children and pregnant women,” said Acting Special Agent in Charge Catherine Holston for EPA’s Criminal Investigative Division. “Today’s sentence sends a message that the agency will hold accountable anyone who places our military veterans and their children in harm’s way by violating our environmental laws.” The government alleged in court documents that between September 2019 and September 2021, Carlin failed to provide required lead-based paint disclosures, resulting in imminent risks of death and serious bodily injury and exposing low-income veteran families and their children at Freedom’s Path Fort Harrison to significant lead levels. Carlin is the owner of 406 Properties, Inc., a property management service located in Helena, and possesses over 26 years of professional experience in the real estate sector. In 2018, she agreed to manage rental units classified as Freedom's Path Fort Harrison, which provided affordable housing for military veterans. In May 2019, Carlin received and forwarded an email from the Montana Department of Commerce requesting information regarding any completed lead-based paint remediation measures for the homes, given that the buildings were constructed prior to 1978. These structures were built circa 1895 and 1905. Despite this communication, Carlin signed two Request for Tenancy Approval Forms for the Fort Harrison rentals in June 2019, incorrectly indicating that “lead-based paint disclosures do not apply because this property was built on or after January 1, 1978.” Carlin was aware that these representations were false and did not provide lead-based paint disclosures to veterans seeking housing at Freedom's Path Fort Harrison. In September 2019, Carlin attended a meeting to address the issue of peeling lead-based paint at Freedom’s Path Fort Harrison. The agenda for the meeting specifically referenced “lead-based paint peeling in the units – doors will not close, paint peels when attempting to close the door,” and included complaints from veterans regarding “chipped paint” in the units. At this time, Carlin was cognizant that the buildings had been constructed prior to 1978 and that deteriorating lead-based paint was present within the structures. Despite Carlin’s knowledge and extensive real estate experience, she continued to sign forms indicating that the units were free of lead-based paint, or they were built after 1978, none of which was true. In addition, Carlin continued to fail to provide lead-based paint disclosures to the veterans and their families residing in the units. The government further alleged that in December 2020, Carlin failed to provide a lead-based paint disclosure to a veteran of Freedom’s Path Fort Harrison. In September 2021, an 18-month-old child in the veteran’s home was found eating paint chips inside the unit. Subsequent medical testing confirmed the child had elevated blood lead levels exceeding levels considered to be “very high” and required treatment for lead poisoning. Lead poisoning can have catastrophic effects on children and their development, and Congress requires a warning about the effects of lead poisoning be given when individuals lease homes built prior to 1978. When interviewed by federal agents, Carlin agreed she was familiar with the requirement to provide lead disclosures and confirmed that no lead disclosures were provided to veterans living in units at Freedom’s Path Fort Harrison. A review of the rental units confirmed lead was present in almost every unit, including the building where the 18-month-old child was present. A subsequent property management company corrected the omission by making lead disclosures to the veterans. The U.S. Attorney’s Office is prosecuting the case. The Environmental Protection Agency’s Criminal Investigation Division, the U.S. Veterans Affairs Office of Inspector General, and U.S. Department of Housing and Urban Development Office of Inspector General conducted the investigation.