We reviewed alleged violations of U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) requirements.  The alleged violations related to fraudulent expense reimbursements sought and received by a contractor from CDBG funds.  The Department of Justice filed a complaint under the False Claims Act and in February 2013 reached a settlement with the subject.  The subject acknowledged and accepted responsibility for the conduct and agreed to pay more than $1.6 million for the losses and related damages claimed by the United States.  Of the settlement total, nearly $1 million represented the amount attributable to HUD funding and the remainder represented funding provided by another federal agency.  The OIG has determined that the content of this memorandum is not appropriate for public disclosure and has therefore limited its distribution to selected officials.

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