The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the HUD Office of Program Enforcement in conducting a civil fraud review of alleged false claims submitted to HUD regarding City employee labor costs charged to the City’s Neighborhood Stabilization Program (NSP) grant. The false claims allegations stemmed from an OIG audit report outlining details of ineligible employee labor costs. On February 21, 2013, HUD entered into settlement agreements with the subjects, each agreeing to pay $3,750, bringing the total settlement to $7,500. The City agreed to pay $7,500 as settlement on behalf of the subjects. The settlement was the result of a desire to seek a satisfactory resolution without the expense and uncertainty of further litigation and does not constitute admissions of liability, fault, or wrongdoing.
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