This report presents the results of Urbach Kahn and Werlin LLP's audit of the Federal Housing Administration's (FHA) financial statements for the years ended September 30, 2007 and 2006. In Urbach Kahn and Werlin's opinion, FHA's principal financial statements are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. The report identifies three significant…

This report presents the results of Carmichael, Brasher, Tuvell and Company's audit of the Government National Mortgage Association's (Ginnie Mae) financial statements for the years ended September 30, 2007 and 2006. In Carmichael, Brasher, Tuvell and Company's opinion, the financial statements present fairly, in all material respects, the financial position of Ginnie Mae as of September 30, 2007 and September 30, 2006 and the results of its…

We audited the District of Columbia Housing Authority's (Authority) administration of its leased housing under its Moving to Work Demonstration (Moving to Work) program based on our analysis of various risk factors relating to the housing authorities under the jurisdiction of the U.S. Department of Housing and Urban Development's (HUD) Baltimore field office. This is the second of three audit reports to be issued on the Authority's program. The…

We completed a limited review of social security number validation procedures used by lenders to qualify single family loans for FHA mortgage insurance. Prior to 2005, the use of invalid or false social security numbers (SSNs) by borrowers and co-borrowers to obtain FHA insured mortgages was an issue. Effective June 2005, FHA required the lenders to validate borrowers social security numbers by matching their names and dates of birth through…

We completed a limited review concerning Sprint FONCARDS or calling cards. We conducted the review to ensure adequate controls were present. The objectives of our review were to determine the controls in place to identify waste, fraud or abuse regarding the FTS 2001 Sprint FONCARD. We determined that verification memorandums were not being sent to individuals to verify that calls were official and were made by the individual as required in…

We completed a limited review concerning college students living in Section 8 subsidized housing. We conducted the review in response to media and congressional attention and subsequent issuance of new regulations and policy guidance by HUD that restricted the eligibility of the students. The media had reported that taxpayer subsidized housing was being occupied by students to offset the high price of college. It also reported concerns by the…

We audited American Property Financial (American), a nonsupervised loan correspondent approved to originate Federal Housing Administration mortgage loans under the U.S. Department of Housing and Urban Development's (HUD) Single Family Direct Endorsement Program. American originated 83 Federal Housing Administration loans between February 1, 2002, and January 31, 2004. As of February 23, 2004, 14 of the 83 loans were in default status. Synergy…

WASHINGTON – Richard Cunningham, 55, a former D.C. Housing Authority employee turned real estate developer residing in the District of Columbia, pleaded guilty today in U.S. District Court in connection with a scheme to defraud private mortgage lenders of more than $15 million, announced U.S. Attorney Jeanine Ferris Pirro. “Richard Cunningham didn’t just defraud lenders, he fabricated federal voucher…

DOJ’s new National Fraud Enforcement Division established to prosecute those who steal or fraudulently misuse taxpayer dollarsHOUSTON – A 56-year-old local resident has pleaded guilty to wire fraud, fraud in connection with a major disaster, threatening to kill a witness and assaulting/impeding a law enforcement officer, announced Acting U.S. Attorney John G.E. Marck.From 2019 through 2024, Sharai Poteet engaged in a scheme to fraudulently…

A former Dallas Housing Authority (DHA) maintenance supervisor who stole from DHA was sentenced to 2 years in federal prison, announced United States Attorney for the Northern District of Texas Ryan Raybould.  Joel Ipina, 50, pled guilty in November 2025 to theft concerning programs receiving government funds.  He was sentenced on May 21, 2026, by United States District Judge Jane J. Boyle, who also ordered him to pay $473,641 in…

WACO, Texas – An Austin woman was sentenced in a federal court in Waco today to 37 months in prison for embezzling federal funds for personal use while serving as the executive director of the Killeen Housing Authority (KHA).According to court documents, Deadra Johnson, 53, fraudulently obtained KHA funds and used them to pay for her personal expenses, including rent, utilities, auto maintenance, internet service, airline tickets, and furniture…

Editor's Note:This matter occurred on date indicated, but not published at that time due to government shutdown. Press release posted and made available following the return to normal operations.  HOUSTON – A 20-count indictment has been unsealed following the arrest of a 56-year-old Porter resident for fraudulently applying for and receiving a newly built house worth $435,000, announced U.S. Attorney Nicholas Ganjei.Sharai Poteet also…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a report examining how HUD tracks elevated blood lead levels in children under six reported by multifamily properties receiving Section 8 project-based rental assistance.  The report found that the Office of Multifamily Housing (Multifamily) lacks policies, processes, and a tracking system to effectively…

WASHINGTON, DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued its annual audit report assessing HUD’s efforts to estimate, test, and reduce improper payments under the Payment Integrity Information Act of 2019. The audit found that for the eighth consecutive year, HUD was unable to estimate improper payments for its two largest rental assistance programs. Together, the…