We audited the State of Louisiana's (State) additional compensation grant (grant) component of the Road Home homeowner assistance program, managed by the State's contractor, ICF Emergency Management Services, LLC (ICF), in conjunction with the Office of Inspector General (OIG) Gulf Coast Region's audit plan and examination of relief efforts provided by the federal government in the aftermath of Hurricanes Katrina and Rita. Our…

We audited the Milford, Connecticut, branch office of Countrywide Bank, FSB (Countrywide), which is a supervised national bank approved by the U.S. Department of Housing and Urban Development (HUD) to originate, underwrite, and service Federal Housing Administration (FHA) single-family insured loans. We selected the Milford, Connecticut, branch office largely based on a lender risk analysis, which showed that the loans it originated had a higher…

As part of the Office of Inspector General's strategic plan, we audited the Shreveport Housing Authority's (Authority) Section 8 Housing Choice Voucher program (Section 8 program). Our objective was to determine whether the Authority ensured that it made housing assistance payments in accordance with the U. S. Department of Housing and Urban Development's (HUD) Section 8 program requirements. The Authority's contracted…

We audited the U.S. Department of Housing and Urban Development's (HUD) Katrina Disaster Housing Assistance Program (KDHAP) and Disaster Voucher Program (DVP) administered by various public housing agencies. Our audit objective was to determine whether HUD established controls to ensure that the Housing Authority of New Orleans (HANO) pre-Hurricane Katrina Housing Choice Voucher program participants did not receive duplicate assistance…

We audited Vesta Windham Heights, LLC (Windham Heights), after completing an audit of the owners' related project, Vesta Moosup, LLC (Moosup Gardens). The Moosup Gardens audit (OIG Audit Report Number 2007-BO-1006) disclosed cost exceptions totaling more than $700,000 related to unauthorized distributions and repayments of owner advances while in a non-surplus-cash position and unreasonable payments to identity-of-interest (related)…

We audited Vesta Mohegan, LLC (Mohegan Commons), after completing an audit of the owners' related project, Vesta Moosup, LLC (Moosup Gardens). The Moosup Gardens audit (OIG Audit Report Number 2007-BO-1006) disclosed cost exceptions totaling more than $700,000 related to unauthorized distributions and repayments of owner advances while in a non-surplus-cash position and unreasonable payments to identity-of-interest (related) companies. Our…

We audited the State of Louisiana's (State) additional compensation grant (grant) component of the Road Home homeowner assistance program, managed by the State's contractor, ICF Emergency Management Services, LLC (ICF). We initiated the audit in conjunction with the Office of Inspector General (OIG) Gulf Coast Region's audit plan and examination of relief efforts provided by the federal government in the aftermath of Hurricanes…

The U.S. Department of Housing and Urban Development's Office of Inspector General audited the State of Louisiana's (State) Road Home program (Road Home) housing manager's performance under a contract worth more than $750 million. The State is a Community Development Block Grant (CDBG) disaster recovery grantee under the Department of Defense Appropriations Act of 2006. We initiated the audit in conjunction with the Office of…

We audited the Shreveport Housing Authority's (Authority) Section 8 Housing Choice Voucher (Section 8) program as part of our strategic plan. Our objective was to determine whether the Authority's Section 8 units met housing quality standards and if not, determine the extent, cause, and impact of its noncompliance on its Section 8 program. The Authority did not have adequate management controls to ensure that it complied with U. S.…

We audited the records for Moosup Gardens Apartments (project), a U.S. Department of Housing and Urban Development (HUD)-insured multifamily project in response to a request from HUD. Our audit objective was to determine whether the project's costs were accurately reported to HUD and in accordance with the regulatory agreement and HUD's requirements. We identified questioned costs and opportunities for funds to be put to better use…

Bob Dean Jr. and several companies that he owned and operated have agreed to an $8.2 million consent judgment to resolve allegations that they violated the National Housing Act of 1934 (NHA), by misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured…

NEW ORLEANS - United States Attorney Duane A. Evans announced that LEESSA AUGUSTINE (“AUGUSTINE”), age 46, was indicted on September 20, 2024 for her involvement in multiple fraud schemes while employed as a Sewerage & Water Board of New Orleans (“S&WB”) Senior Special Agent, a position tasked with investigating the alleged misconduct of other Sewerage & Water Board employees.In one alleged scheme, AUGUSTINE, who…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued an audit report examining the City of New Orleans’ (the City) use of HUD’s National Disaster Resilience grant funding.  HUD’s program is designed to help state and local communities recover from past disasters, while also improving their infrastructure to withstand future extreme events through strategic community…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that two New York men were sentenced today by U.S. District Judge Omar A. Williams in Hartford for engaging in a wide-ranging mortgage fraud scheme involving 24 mortgage loans on numerous multifamily housing properties in Hartford totaling nearly $50 million.  JACOB DEUTSCH, 58, of Brooklyn, was sentenced to 62 months of imprisonment and four years of…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL DiMASSA, 32, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 27 months of imprisonment, followed five years of supervised release, for his involvement in schemes that resulted in the theft of more than $1.2 million dollars in COVID relief funds and other funds from the City of West Haven.  Judge…

  More than $10 Million Secured for Victims of Sexual Harassment Through Department’s Sexual Harassment in Housing Initiative The Justice Department announced today that it has secured an agreement to resolve a lawsuit alleging that New London, Connecticut, landlord Richard Bruno violated the Fair Housing Act by sexually harassing female tenants and applicants. The settlement also resolves claims against Domco LLC and Domco II LLC, which…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONNA CARNEY, 67, of Canton, was sentenced today by U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to one month of imprisonment, followed by three years of supervised release, for defrauding a U.S. Department of Housing and Urban Development (“HUD”) program. According to court documents and statements made in court, in approximately 1995, Carney…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN TRASACCO, 50, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 96 months of imprisonment, followed by five years of supervised release, for conspiracy and fraud offenses related to a scheme to steal COVID-19 relief funds from the City of West Haven. According to the evidence presented during a trial in this…