Citrona Homes’ founder defrauded investors with staged photos and false renovation claims
A Florida man who orchestrated a $5 million fraud scheme involving distressed rental properties in western Pennsylvania was sentenced to six and a half years in federal prison.
Paul Andrew Gulbronson, 59, received a 78-month sentence and three years of supervised release after a federal jury found him guilty of wire fraud conspiracy. The sentencing was handed down by United States District Judge Stephanie Haines. It followed a lengthy investigation into Citrona Homes, a company Gulbronson ran with his wife, Kelly Bonilla, who remains a fugitive in Panama.
Staged renovations and false promises
Between 2017 and 2019, Citrona Homes targeted investors, mostly from out of state, through telemarketing and online pitches, promising “fully renovated” properties in Johnstown, Pennsylvania, with guaranteed Section 8 tenants.
“Over the course of several years, Paul Gulbronson misled investors regarding the condition and status of their Citrona Homes properties in order to swindle millions of dollars from those victims, and then—upon learning that he was under investigation for these crimes—fled the United States, leaving dozens of dilapidated properties in his wake,” said acting United States attorney Troy Rivetti.
Citrona purchased more than 100 homes for about $2 million and resold them for roughly $6 million, according to HUD settlement records. However, investigators found that few properties were habitable, and some were vacant lots.
“Instead of fulfilling his promises, he used their money to further the fraud scheme and pay for personal expenses, including restaurants, airline tickets, home furnishings, and lease payments for his residences in Florida,” said Lesley Allison, Inspector in Charge of the Pittsburgh Division of the United States Postal Inspection Service.
Photos on Citrona’s website were staged, and investors were told properties would be renovated or already tenant-occupied—claims that proved false. “Paul Gulbronson willfully engaged in a $5 million fraud scheme to induce individuals to make investments on properties under false pretenses, including false statements that payments would be made with federal taxpayer dollars,” said Shawn Rice, Special Agent in Charge with HUD’s Office of Inspector General.
Fraud concerns extend beyong Pennsylvania
Gulbronson’s conviction follows a pattern of similar cases in the mortgage sector, where fraudulent operators exploit gaps in oversight and investor eagerness for high-yield rental properties. A lawsuit filed on September 2 has drawn attention to major players in the mortgage industry, alleging fraud and regulatory violations in a VA-backed home loan. In her complaint, Army veteran Nikki Harper claimed she was pushed into buying a home with hidden problems, such as a broken HVAC system and structural issues, and given questionable paperwork, including an amendment signed electronically without her knowledge or approval.
Matt Seguin, senior principal of fraud solutions at Cotality, said that multifamily and investment property fraud led the mortgage fraud increases, while occupancy fraud held steady in Q2.
These cases highlights ongoing concerns about investor due diligence and the risks associated with remote property purchases, especially those involving government-subsidized housing.
