The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Milestone Management Services, Inc. (Milestone), of Topeka, Kansas, in response to a request from the HUD's Office of Multifamily Housing in Kansas City, Kansas. HUD was concerned that Milestone had not complied with cash management requirements. Our audit objective was to determine whether Milestone complied with HUD’s cash management…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General audited the HOME Investment Partnerships (HOME) program of the City of Kansas City, Kansas (City). Our objective was to determine whether the City followed HUD requirements when establishing and managing HOME projects. We concluded that the City did not obtain adequate environmental reviews, improperly awarded HOME construction projects, improperly charged…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, reviewed 23 Federal Housing Administration (FHA) loans originated by CTX Mortgage's Overland Park, Kansas, branch office. Our audit objectives were to determine whether CTX Mortgage followed U.S. Department of Housing and Urban Development (HUD) requirements for (1) borrower eligibility and creditworthiness and property eligibility when underwriting…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Leawood, Kansas, branch office of Clarion Mortgage Capital, a Federal Housing Administration (FHA)-approved loan correspondent. Our audit objective was to determine whether Clarion Mortgage Capital followed HUD requirements for implementing a quality control program. We concluded that Clarion Mortgage Capital did not fully comply with HUD's…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General reviewed 23 Federal Housing Administration (FHA) loans underwritten by Peoples Bank of Overland Park , Kansas . Our audit objectives were to determine whether Peoples Bank followed HUD requirements for (1) borrower eligibility and creditworthiness and property eligibility when underwriting loans and (2) implementing a quality control program. We concluded that…

The Justice Department filed a lawsuit today against Ariel Solis Veleta, of Albuquerque, New Mexico, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Solis was employed as a leasing agent and property manager at St. Anthony Plaza Apartments in Albuquerque between 2010 and 2022.The lawsuit, filed in the U.S. District Court for the District of New Mexico, alleges that between 2010 and 2022, Solis requested sex acts…

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Bertrand Nelson, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Southcentral Region, announced today that landlords for properties located in Roswell and Albuquerque paid $30,000 and $12,000, respectively to settle allegations that they violated the anti-fraud False Claims Act by charging…

ALBUQUERQUE, N.M. – U.S. Attorney for the District of New Mexico Fred J. Federici today announced a settlement agreement with the Santa Fe Boys and Girls Club to resolve issues involving two special project grants awarded to the Club. According to the settlement agreement, the U.S. Department of Housing and Urban Development (HUD) awarded two grants to the Club to purchase land for construction of a new facility. HUD granted the Club $268,245…

Club to pay $1.4 million to resolve allegations of False Claims Act violations ALBUQUERQUE, N.M. – U.S. Attorney for the District of New Mexico Fred J. Federici today announced a settlement agreement with the Santa Fe Boys and Girls Club to resolve issues involving two special project grants awarded to the Club. According to the settlement agreement, the U.S. Department of Housing and Urban Development (HUD) awarded two grants to the Club to…