The federal criminal case against Gary Herzog has been deferred for 12 months, allowing him to “demonstrate good conduct” to avoid further prosecution, reads an agreement approved in federal court Wednesday.

The agreement was approved by Judge David Cercone in U.S. District Court in Erie.

Herzog, 75, of Smethport, had been charged with theft from the U.S. Department of Housing and Urban Development in the amount of $7,380.

According to court records, Herzog, 75, represented himself to be property owner for a tenant in the Housing Choice Voucher program. He allegedly failed to inform the McKean County Redevelopment and Housing Authority that he transferred ownership of the property where the tenant was living back in 2007.

Herzog, through attorney Philip Friedman, agreed to participate in a pre-trial diversion program, which entails supervision for no less than 12 months. During that time, he is not to violate any local, state or federal law, and agreed to make restitution to the McKean County Housing Authority of $250 per month until August of 2020, when the final payment will be $130, the agreement read.

Should he complete the program, no further criminal prosecution will be undertaken, according to the agreement.

Assistant U.S. Attorney Christian A. Trabold was prosecuting the case on behalf of the government.

HUD’s office of inspector general conducted the investigation leading to the indictment in this case.