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In violation of the housing assistance payment contract’s conflict-of-interest requirements, the former executive director of the Housing Authority of the City of Beeville, TX, executed housing assistance payment contracts on behalf of the Authority with her brother and sister.  The former executive director did not fully disclose the conflicts-of-interest and had not sought a waiver from HUD’s Office of Public and Indian Housing until the OIG’s review occurred.  As a result, both siblings received housing assistance payments as landlords, and the Authority paid them $31,555 for ineligible housing assistance payments.

On June 21, 2018, the Office of Program Enforcement executed a settlement agreement showing that HUD had filed a complaint against the former executive director and her siblings under the Program Fraud Civil Remedies Act of 1986, for causing false claims to be made in HUD’s Housing Choice Voucher Program.  The respondents agreed to pay HUD $40,000 to settle the false claim allegations.  The agreement required an initial payment of $13,320, 53 monthly payments of $500, and a final payment of $180.  The settlement was not an admission of liability or fault on the part of any parties.

Recommendation Status Date Issued Summary
2018-FW-1802-001-A Cerrado Agosto 21, 2018 We recommend that HUD’s Office of General Counsel, Office of Program Enforcement, acknowledge that the $40,000 in the settlement agreement represents an amount due HUD.