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Date Issued

General Counsel

  •  
    Status
      Open
      Closed
    2017-PH-1006-001-A
    $3,465,509
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Provide documentation to show that payroll costs totaling $2,019,496 and any payroll costs incurred outside our audit period, including fiscal year 2017, were reasonable and necessary expenses for the operation of the project or repay the project from nonproject funds for any amount that it cannot support.

  •  
    Status
      Open
      Closed
    2017-PH-1006-001-B
    $56,021
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Provide documentation to show that other direct costs totaling $56,021 and any direct costs incurred outside our audit period, including fiscal year 2017, were reasonable and necessary expenses for the operation of the project or repay the project from nonproject funds for any amount that it cannot support.

  •  
    Status
      Open
      Closed
    2017-PH-1006-001-C
    Closed on May 19, 2023

    Develop and implement controls to ensure that the project complies with the regulatory agreement and applicable HUD requirements.

  •  
    Status
      Open
      Closed
    2017-PH-1006-002-D
    Closed on August 19, 2019

    Pursue civil money penalties and administrative sanctions, as appropriate, against the owner and its parent company and their principals for their part in the violations cited in this report.

General Counsel

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-E
    Closed on June 01, 2018

    Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies, civil money penalties, or both against SecurityNational, its principals, or both for incorrectly certifying to the eligibility for FHA mortgage insurance or that due diligence was exercised during the origination of FHA loans.

General Counsel

  •  
    Status
      Open
      Closed
    2017-LA-1801-001-E
    Closed on June 01, 2018

    Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies, civil money penalties, or both against Venta, its principals, or both for incorrectly certifying to the eligibility for FHA mortgage insurance or that due diligence was exercised during the origination of FHA loans.

General Counsel

  •  
    Status
      Open
      Closed
    2017-CF-1805-001-A
    $250,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on September 18, 2017

    Acknowledge that $250,000 of the $1,025,000 in the attached settlement represents an amount due HUD, less the U.S. Department of Justice’s (DOJ) civil debt collection fees.

General Counsel

  •  
    Status
      Open
      Closed
    2017-AT-1801-001-A
    $2,930,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on October 11, 2018

    Acknowledge that $2.93 million in the attached settlement agreement represents an amount due HUD, less DOJ’s civil debt collection fees. (Footnote 2 - DOJ’s 1994 Appropriation Act (Public Law 103-121) authorized DOJ to retain up to 3 percent of all amounts collected as the result of its civil debt collection litigation activities.)

General Counsel

  •  
    Status
      Open
      Closed
    2017-CF-1804-001-A
    $41,000,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on August 21, 2017

    Acknowledge that $41 million of the $89,274,944 in the attached settlement represents an amount due HUD, less DOJ’s civil debt collection fees.

General Counsel

  •  
    Status
      Open
      Closed
    2017-FW-1008-001-F
    Closed on September 05, 2019

    Take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment, against the commissioners.

General Counsel

  •  
    Status
      Open
      Closed
    2017-PH-1802-001-A
    $10,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on July 12, 2024

    Acknowledge that the attached settlement agreement for $10,000 represents an amount due HUD.

General Counsel

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-A
    $15,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on May 29, 2019

    Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies against Cypress Meadows, LLC; Skyline Crest Enterprises, LLC; the project’s owner; or all three for inappropriately disbursing funds in violation of the project’s regulatory agreement, operating lease agreement, and HUD requirements.

  •  
    Status
      Open
      Closed
    2017-LA-1004-001-B
    Closed on September 19, 2018

    Pursue appropriate civil money penalties and administrative actions, up to and including debarment, against Cypress Meadows LLC; Skyline Crest Enterprises LLC; the project’s owner; or all three for violating the project’s regulatory agreement, operating lease agreement, and HUD requirements.

General Counsel

  •  
    Status
      Open
      Closed
    2017-PH-1003-002-D
    Closed on December 18, 2018

    Review the issues identified in this audit report and if appropriate, pursue administrative sanctions against the board of directors for the violations cited in this report.

General Counsel

  •  
    Status
      Open
      Closed
    2017-FW-1006-001-K
    Closed on August 27, 2019

    We recommend that the Director, Departmental Enforcement Center take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment against the executive director.

  •  
    Status
      Open
      Closed
    2017-FW-1006-001-L
    Closed on August 21, 2017

    We recommend that the Director, Departmental Enforcement Center seek civil money penalties, as appropriate, against the executive director.

  •  
    Status
      Open
      Closed
    2017-FW-1006-001-M
    $10,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on July 02, 2020

    We recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency and, if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.

General Counsel

  •  
    Status
      Open
      Closed
    2017-CH-1801-001-A
    $3,452,499
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on October 11, 2019

    Acknowledge that the judgment awarded $10,373,998 against the former president and founder of MDR Mortgage to the U.S. Government, of which HUD’s loss totaled $3,452,499.

General Counsel

  •  
    Status
      Open
      Closed
    2017-CF-1803-001-A
    $45,000,000
    Questioned Costs

    Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

    Closed on March 23, 2023

    Acknowledge that $45 million in the attached settlement agreement represents an amount due HUD, less the Department of Justice’s civil debt collection fees.

General Counsel

  •  
    Status
      Open
      Closed
    2017-NY-1008-001-Q
    Closed on December 13, 2018

    We recommend that the Director of HUD’s Departmental Enforcement Center pursue administrative sanctions against any current or former Authority officials found to have spent public housing program funds for personal or unallowable use.