The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Grace Hill Neighborhood Health Centers (Grace Hill). Our audit objective was to determine whether Grace Hill properly charged payroll and support expenses to the grants. We concluded that Grace Hill charged unsupported salary and benefit costs to the grants because it did not require grant staff to properly track their time. Additionally, Grace Hill…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Midwest Mortgage Capital (Midwest). Our audit objectives were to determine whether Midwest followed HUD requirements for underwriting loans and performing its quality control program for single-family production. We concluded that Midwest did not properly underwrite 7 of the 29 defaulted loans reviewed. These loans had material underwriting…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the St. Louis Housing Authority in St. Louis, Missouri. Our objective was to determine whether the Authority took complete physical inventories and maintained adequate property records. We concluded that the Authority did not perform complete physical inventories in fiscal years 2006, 2007, or 2008 or reconcile the results of the inventories…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited CitiMortgage, Incorporated (CitiMortgage). Our audit objectives were to determine whether CitiMortgage followed U.S. Department of Housing and Urban Development (HUD) requirements for underwriting loans and performing its quality control program for single-family production. We concluded that CitiMortgage did not properly underwrite 20 of the 60…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General reviewed the City of St. Louis' use of HOME Investment Partnerships Program (HOME) funds. Our audit objective was to determine whether the City used HOME funds for reasonable and necessary development costs. We concluded that The City used HOME funds for costs that were not reasonable and necessary to produce housing for low-income families. Additionally…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Heartland Funding Corporation (Heartland Funding) because of its high 30-day delinquency rate. More than 23 percent of the loans that it originated from January 2006 through December 2007 had been at least 30 days delinquent (past due). Our audit objectives were to determine whether Heartland Funding followed HUD requirements for (1) borrower…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, reviewed James B. Nutter and Company's (J.B. Nutter) quality control program. Our objective was to determine whether J.B. Nutter followed HUD's quality control requirements for home equity conversion mortgages insured by the Federal Housing Administration (FHA). We concluded that for six months in 2007 and 2008, J.B. Nutter did not meet HUD's…

KANSAS CITY, Mo. – A Kansas City, Mo., man who defrauded a local financial institution of $652,784.34 in funds was sentenced in federal court today for bank fraud and money laundering.Maximillian D. Howell, 44, was sentenced by U.S. District Judge Brian C. Wimes to a total of 21 months in federal prison without parole.  The court also ordered Howell to pay restitution of $231,841.84 to the financial institution.  In addition, the court…

James B. Nutter & Company, a former mortgage lender located in Kansas City, Missouri, has agreed to pay $2.4 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 by knowingly underwriting Home Equity Conversion Mortgages (HECM) insured by the Department of Housing and Urban Development (HUD)’s Federal Housing Administration (FHA) that did not meet…

Sold Stolen Rental Equipment, Real Estate He Didn’t Own KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for two fraud schemes in which he sold unwitting victims rental equipment and real estate that did not belong to him. Jeremy Ace Woods, 46, was sentenced by U.S. District Judge Howard F. Sachs to 17 years in federal prison without parole. The court also ordered Woods to pay $798,021 in restitution to 48…

ST. PAUL, Minn. – Two Nigerian nationals have been sentenced to prison, probation, and owe over $500,000 in restitution for stealing hundreds of thousands of dollars from victims in romance fraud schemes, announced United States Attorney Andrew M. Luger. According to court documents, beginning in 2016 through 2019, Charles Emeka Obije, 41, used fictitious identities to contact victims throughout the United States, including Minnesota, via email…

MINNEAPOLIS – An Albert Lea woman has been sentenced to a year and one day in prison, three years of supervised release, and is required to pay $213,217 in restitution for stealing public housing rent payments, announced U.S. Attorney Andrew M. Luger. According to court documents, between January 2010 and July 18, 2018, Marcie Marie Thumann, 45, worked as a bookkeeper for the Albert Lea Housing and Redevelopment Authority (HRA), a government…

MINNEAPOLIS – The Justice Department today announced that it has obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) by subjecting 23 women to severe and repeated sexual harassment and retaliation at residential properties defendants own or manage in and around Minneapolis. Under the consent decree, the defendants must pay a total of $736,000 in…