We reviewed the City of Jacksonville/County of Duval, Florida's (City) Community Development Block Grant program (CDBG). We conducted the review as part of the U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General's annual audit plan. Our objectives were to determine whether the City complied with CDBG regulations and requirements related to (a) use of competition when purchasing goods and services, (b)…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Housing Authority of the City of Michigan City's (Authority) nonprofit development activities. The review of public housing authorities' development activities is set forth in our annual audit plan. We selected the Authority because it was identified as having high-risk indicators of nonprofit development activity. Our objective was to determine…

We audited the Cathedral Foundation of Jacksonville, Inc. (Foundation), concerning its involvement as owner and/or manager of four elderly multifamily housing projects (projects) located in Jacksonville, Florida. We conducted the audit based on a request from the Jacksonville Multifamily Housing Hub, U.S. Department of Housing and Urban Development (HUD), Jacksonville, Florida. Our audit objective was to determine whether the Foundation…

Orlando, FL –A grand jury has returned a federal indictment charging Jason Morales (44, Chagrin Falls, Ohio) with six counts of bank fraud. If convicted, Morales faces a maximum penalty of 30 years in federal prison on each count. U.S. Attorney Gregory W. Kehoe made the announcement.According to the indictment, Morales concocted and executed a mortgage fraud scheme targeting a financial institution. To ensure that otherwise unqualified borrowers…

Jacksonville, Florida – Thomas B. Hoffman (46, Florahome) has been sentenced by U.S. District Judge Jordan E. Pratt to 12 months and 1 day in federal prison for theft of federal funds. The court also ordered Hoffman to forfeit $155,706, the proceeds of the offense, and pay restitution to the United States Department of Housing and Urban Development (HUD). U.S. Attorney Gregory W. Kehoe made the announcement.According to court documents,…

SOUTH BEND –  Kerry T. Hancock, 34 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to embezzlement by a bank employee, announced United States Attorney Adam L. Mildred.Hancock was sentenced to 2 months imprisonment followed by 8 months of supervised release with the first 3 months served on home detention and ordered to pay $115,864.84 in restitution.According to…

Jacksonville, Florida – United States Attorney Gregory W. Kehoe announces that Thomas B. Hoffman (45, Florahome) has pleaded guilty to theft of federal funds. Hoffman faces a maximum penalty of 10 years in federal prison, as well as forfeiture in the amount of $155,706 and restitution to the victim. A sentencing date has not yet been set.According to the plea agreement, Hoffman was an employee of the Palatka Housing Authority (PHA), which…

Tampa, Florida – United States Attorney Gregory W. Kehoe announces that Carlos Calderon (56, Clermont) has pleaded guilty to conspiracy to commit bank fraud. Calderon faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.According to the plea agreement and court proceedings, Calderon and others conspired to create and execute a mortgage fraud scheme targeting financial institutions. To ensure that…

Orlando, FL – United States District Judge Wendy W. Berger has sentenced Maria Del Carmen Montes (48, Kissimmee) to 33 months in federal prison for bank fraud. Montes pleaded guilty on January 4, 2024. According to court documents, Montes, co-conspirator Carlos Ferrer, and others created and executed a mortgage fraud scheme targeting financial institutions. Montes assisted clients with purchasing homes and, after signing the real…

NEW ALBANY—Willie D. Watts, 42, of Clarksville, has been sentenced to eighteen months in federal prison, followed by three years of supervised release, after pleading guilty to theft of federal benefits from the Section 8 Housing Voucher, Supplemental Nutrition Assistance, and Social Security programs.According to court documents, from 2014 to 2021, Ms. Watts received benefits from four different federal programs intended to benefit…

SOUTH BEND – Albert Smith, 47 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after being found guilty of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, two counts of wire fraud, and one count of federal program theft on November 1, 2023, following an eight-day jury trial, announced United States Attorney Clifford D. Johnson.Smith was sentenced…

SOUTH BEND – Tonya Robinson, 61 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after being found guilty of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, one count of wire fraud, and one count of federal program theft on November 1, 2023, following an eight-day jury trial, announced United States Attorney Clifford D. Johnson.Robinson was…

INDIANAPOLIS- The U.S. Attorney’s Office for the Southern District of Indiana, the Justice Department’s Civil Rights Division, and the United States Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) hosted a roundtable today, April 19th, 2024, for community organizations to discuss the problem of sexual harassment in housing.The Justice Department’s Civil Rights Division launched the Sexual Harassment in…

SOUTH BEND –Douglas Donley, 42 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio, after being found guilty of one count of conspiracy to commit bank fraud and wire fraud and one count of bank fraud on November 1, 2023, following an eight-day jury trial, announced United States Attorney Clifford D. Johnson.Donley was sentenced to 27 months in prison, 2 years of supervised release, and…

SOUTH BEND –Douglas Donley, 42 years old, of South Bend, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio, after being found guilty of one count of conspiracy to commit bank fraud and wire fraud and one count of bank fraud on November 1, 2023, following an eight-day jury trial, announced United States Attorney Clifford D. Johnson.Donley was sentenced to 27 months in prison, 2 years of supervised release, and…

Orlando, FL –United States Attorney Roger B. Handberg announces that Maria Del Carmen Montes (46, Kissimmee) has pleaded guilty to three counts of bank fraud. Each bank fraud count carries a maximum penalty of 30 years in federal prison. Montes was indicted, along with coconspirator Carlos Ferrer, on July 20, 2022.According to the plea agreement, Montes, coconspirator Ferrer, and others created and executed a mortgage fraud scheme targeting…

SOUTH BEND – Tonya Robinson, 60 years old, Albert Smith, 47 years old, and Douglas Donley, 42 years old, were each found guilty of various federal felony charges following an eight-day jury trial presided over by United States District Court Senior Judge Jon E. DeGuilio, announced United States Attorney Clifford D. Johnson.The jury found Robinson, Smith, and Donley guilty of conspiracy to commit bank fraud and wire fraud.  Donley was also…