An Upper Gwynedd man who once served more than three decades in prison for a juvenile homicide conviction, and later held a seat on Montgomery County’s Prison Board of Inspectors, is returning to jail after admitting to his role in a COVID rental assistance fraud scheme that netted nearly $95,000.
Vernon Steed, 57, of the 1400 block of Oxford Circle, was sentenced this month to 11½ to 23 months in Montgomery County jail after pleading guilty to felony counts of dealing in proceeds of unlawful activities, conspiracy, theft by deception, and attempted theft, according to court records.
Judge Thomas M. DelRicci also ordered Steed to serve six years of probation following his parole, meaning he will remain under county supervision for about eight years, according to The Mercury.
Steed, who entered his plea in February, must share restitution of $94,875 with his wife, Mary Ann Steed.
The fraud scheme
County detectives alleged Steed and his wife submitted seven fraudulent applications for emergency rental assistance between April and September 2021, using the identities of others — including his wife’s deceased sister — and forged documents to claim tenants were behind on rent. Five of those applications were approved and paid out, while two others were flagged for fraud, triggering the criminal investigation.
Investigators said Steed even paid individuals for their personal information, sometimes $800 in cash or gift cards, and used it to complete applications. Victims later told detectives they were unaware of the submissions.
Funds were disbursed through Your Way Home, the county’s relief agency, and were supposed to help struggling tenants and landlords during the pandemic. Prosecutors said the scheme diverted money from residents in legitimate need.
Assistant District Attorney Gwendolyn Marie Kull argued for a lengthy state prison term, telling the court that Steed showed no remorse and exploited vulnerable community members, including those recovering from addiction, to pull off the scheme.
“By stealing this money, there was less money for Montgomery County to be able to give to those to whom the money was meant to go,” Kull told The Mercury.
Defense attorney Edward Foster countered that Steed’s wife was more culpable and urged the court to impose probation. More than a dozen friends and relatives supported Steed in court.
Mary Ann Steed’s case
In April 2024, Mary Ann Steed, 51, pleaded guilty to her role in the conspiracy and was sentenced to seven to 23 months of supervision, including 60 days in jail, followed by house arrest and probation. She also was ordered to help repay the stolen funds.
Earlier that year, she briefly sought to withdraw her guilty plea, claiming she felt pressured to agree to the facts outlined by prosecutors. Montgomery County Judge Gail Weilheimer ultimately denied that request, and Mary Ann later proceeded with her sentence.
During her hearing, she admitted some of the stolen money went to pay personal credit card debt.
A long criminal history
Steed’s criminal record stretches back decades. In 1988, at age 17, he was convicted of first-degree murder in Philadelphia after an innocent bystander was killed in a shooting. He was sentenced to life in prison without parole, according to The Mercury.
In 2012, the U.S. Supreme Court ruled mandatory life sentences for juveniles unconstitutional, paving the way for Steed’s re-sentencing. He was released on parole in 2018 after serving 32 years.
Steed later worked in ministry and advocacy, mentoring at recovery houses and serving as a forensic advocate with Hopeworx Inc. In 2022, Democratic county commissioners Valerie Arkoosh and Kenneth Lawrence Jr. appointed him to the Montgomery County Prison Board of Inspectors, a volunteer oversight body. Republican Commissioner Joe Gale opposed the appointment.
Steed resigned from the board in April 2023, just three days before theft charges were filed.
Back to prison
Because Steed was still on parole for the homicide conviction, his guilty plea also triggered a parole violation. He previously was ordered to serve another 12 months in prison tied to that case.
Kull said the fraud conviction reflects a betrayal of the second chance Steed was given.
“Vernon had a second chance at freedom and living a law-abiding life, and instead of taking every opportunity to help other people, he exploited people and he exploited funds that were meant to help people who were really, truly in need,” she told the court, according to The Mercury.
Steed will serve his new sentence at Montgomery County Correctional Facility and remain under probation supervision through the early 2030s.
All suspects and defendants are innocent until proven guilty. This story was compiled using public court records.
