We audited the Community Development Corporation of Brownsville, Inc. (Corporation), at the request of the U. S. Department of Housing and Urban Development's (HUD) San Antonio Director of Community Planning and Development. Our objective was to determine whether the Corporation correctly charged administrative costs to its various federal funding sources. We expanded our objective to also determine whether the Corporation used housing…

As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the portability features of the Dallas Housing Authority's (Authority) Housing Choice Voucher program. Our objective was to determine whether the Authority administered portability in accordance with HUD requirements. The Authority mismanaged its portable vouchers and failed…

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…

CLEVELAND – A Portage County man has been sentenced to federal prison for obtaining government assistance by making false and misleading statements regarding his state of health.Michael W. Honaker, 55, of Windham, Ohio, was sentenced to 31 months in prison by U.S. District Judge David A. Ruiz, after he pleaded guilty in December 2024 to wire fraud and theft of government property. He was also ordered to serve three years of supervised release…

The Justice Department announced today that the owners and operators of rental properties in and around Athens County, Ohio have agreed to pay $480,000 to settle a lawsuit alleging that their former rental manager, Joseph Earl Lucas, sexually harassed female tenants and prospective tenants of rental properties for almost twenty years, in violation of the Fair Housing Act.“No one should have to endure sexual harassment to keep a roof over his or…

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…

CLEVELAND – Basheer Jones, 40, of Cleveland, Ohio, has been sentenced to 28 months in prison by U.S. District Judge J. Philip Calabrese, after pleading guilty to conspiring to commit wire fraud and honest services fraud by using his role as a public official for personal financial gain by seeking to defraud multiple community stakeholders out of more than $200,000. He was also ordered to serve three years of supervised release after…

PLANO, Texas – Three Texas women have been charged with federal violations related to a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.Nicole Espinosa, also known as Short Sale Queen, 35, of Plano; Stephanie Smith, also known as Stephanie Parks, 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, were indicted by a federal grand jury on November 20, 2024, and charged with federal…

CLEVELAND – Basheer Jones, 40, of Cleveland, Ohio, has been charged in a two-count information with conspiring to commit wire fraud and honest services fraud for using his role as a public official for personal financial gain by seeking to defraud multiple community stakeholders out of more than $200,000. He previously served as an elected Cleveland city council member representing Ward 7.According to court documents, from about December 2018…