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The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) performed a review of The Retreat at Church Ranch bank records based on our audit conducted of the project.  Our review disclosed that the owner allegedly made payments for personal expenses from the project’s bank account.  We requested that HUD pursue proceedings against the owner.

On July 22, 2015, HUD notified the owner of his proposed debarment from future participation in procurement and nonprocurement transactions, as a participant or principal, with HUD and throughout the Executive Branch of the Federal Government, for an indefinite period.  The owner denies HUD’s allegations.  However, to avoid the uncertainty of litigation and to arrive at a settlement that was satisfactory to both parties, the parties negotiated in good faith and reached a settlement in which the owner shall be debarred from participating in any procurement and nonprocurement transactions with the Executive Branch of the Federal Government for a period of five years.