Final Civil Action: BSR Trust, LLC, Settled Allegations of Making False Claims Related to Section 8 Housing Assistance Payments
On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986 case regarding Summit Bradford Apartments located in Tulsa, OK, following its review. The Government alleged that the owner submitted 40 false claims under the Act. The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement with BSR...
Mayo 21, 2018
Final Civil Action: First American Mortgage Trust Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Massachusetts in the civil investigation of First American Mortgage Trust. First American has its principal place of business in Brighton, MA, and does business as NXTLoan.Com Corp., a Delaware corporation. First American is the parent company of NXTL. On October 18, 2016, First...
Septiembre 18, 2017
Sons of Divine Providence Did Not Ensure That the Don Orione Home, East Boston, MA, Operated in Accordance With Its Regulatory Agreement
Sons of Divine Providence did not properly oversee the HUD-insured nursing home to ensure that it operated in accordance with its regulatory agreement. By not informing HUD of the lawsuits, the changes in management agents, and the loans, Sons of Divine Providence did not provide HUD the necessary data to understand the risk to the HUD insurance fund. However, when Sons of Divine Providence sold the nursing home and paid off the HUD-...
Octubre 13, 2016
American Midwest Mortgage Corporation Settled Allegations of Failing To Comply With Federal Housing Administration Underwriting Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of Program Enforcement in the civil investigation of American Midwest Mortgage Corporation. American’s principal place of business is located in Cleveland, OH. American became an FHA-approved direct endorsement lender on August 28, 1983. The direct endorsement lender program authorizes private-sector mortgage lenders...
Septiembre 23, 2016
The Alphabet Group, LLC, Marks Group, LLC, and Imagineers, Inc., Settled Allegations Related to Section 8 Rent Certifications
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Connecticut in the civil investigation of The Alphabet Group, LLC, Marks Group, LLC, and Imagineers, Inc. Alphabet and Marks are owners of residential housing in Hartford, CT, and Imagineers administers the Section 8 program for the City of Hartford Housing Authority. On May 17, 2012,...
Septiembre 19, 2016
Iron Mountain Settled Allegations of Making False Disclosures and False Statements Regarding Discounts and Prices Relevant to Contracts It Had With HUD
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted the U.S. Attorney’s Office for the Eastern District of California in the civil investigation of Iron Mountain, Incorporated, and Iron Mountain Information Management, LLC (Iron Mountain). Iron Mountain is headquartered in Boston, MA. The investigation began due to a qui tam filing in the U.S. District Court for the Eastern...
Septiembre 29, 2015
We conducted a limited review of the Cambridge Housing Authority’s Moving to Work Housing Choice Voucher Program’s use of exception payment standards. This program allows public housing authorities to use exception payment standards to set rental payments in excess of the payment standard established for an authority’s rents . The review was initiated as a result of a concern raised by a member of Congress about whether public...
Septiembre 16, 2015
The Housing Authority of the City of Stamford, CT Took Appropriate Action to Resolve a Complaint While Complying With Procurement Regulations
We audited the Housing Authority of the City of Stamford, doing business as Charter Oak Communities. We received an anonymous complaint against the Authority related to an alleged improper procurement. The complainant alleged that Authority officials awarded a contract to an employee’s spouse without following procurement and conflict-of-interest requirements. In addition, a previous audit (Audit report number 2012-BO-1002 issued...
Septiembre 26, 2014
Final Civil Action – President of FHA-Approved Lender Settled Allegations of Causing a False Statement To Be Made to HUD Regarding an FHA-Insured Loan (Memorandum not available to the public)
We investigated allegations that the president of a Federal Housing Administration (FHA)-approved lender violated loan origination requirements under the U.S. Department of Housing and Urban Development (HUD), FHA insurance program. The allegations were that although the loan application showed the lender’s president as the loan officer who originated the loan, it was actually originated by an employee of the lender, who was also the...
Agosto 21, 2014
Final Action – Real Estate Broker Violated U.S. Department of Housing and Urban Development Real Estate-Owned Program Requirements
We investigated allegations that Thomas Bechtel, a real estate broker, violated U.S. Department of Housing and Urban Development (HUD) real estate-owned owner occupancy program requirements. The Cincinnati HUD office referred the complaint to HUD OIG. Our investigation revealed that a bidder, using Thomas Bechtel as his real estate broker, made a false statement when the bidder purchased a HUD-owned single-family home. The bidder...
Febrero 23, 2014