As part of the U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General's (OIG) strategic plan, we audited the Municipality of Caguas (authority) Section 8 Housing Choice Voucher program. Our audit objectives were to determine whether Section 8 units met housing quality standards in accordance with HUD requirements and whether the authority properly determined housing assistance subsidies. Of the 10 units…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Schuyler Housing Authority (Authority) to determine whether the Authority improperly spent public housing assets when developing and operating an assisted living program. We found that the Authority inappropriately used more than $78,000 in public housing funds to pay expenses of a non-HUD assisted living program. In addition, the Authority…

HUD OIG reviewed the development activities of the Douglas County Housing Authority (Authority), Omaha, Nebraska, to determine whether the Authority encumbered or spent U.S. Department of Housing and Urban Development (HUD) assets for nonfederal development activities without HUD approval. The Authority inappropriately encumbered nearly $1.67 million in federal assets when it entered into loan documents containing setoff provisions against the…

We audited the Municipality of Canovanas' (Municipality) Community Development Block Grant (Block Grant) program. We selected the Municipality for review as part of our strategic plan. The objective of the audit was to determine whether the Municipality complied with U.S. Department of Housing and Urban Development (HUD) regulations, procedures, and instructions related to the administration of the Block Grant program. The Municipality…

As part of the U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General's (OIG) strategic plan, we audited the Municipality of Ponce (authority) Section 8 Housing Choice Voucher program. Our audit objectives were to determine whether Section 8 units met housing quality standards in accordance with HUD requirements and whether the authority properly paid program landlords and properly determined housing…

FBI continues with the investigation and is searching for possible victims.SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment charging Ángel Alexis Vázquez Sánchez, 25, of Jayuya, PR, for child exploitation.According to court documents, from December 2021 throughout May 2023, Ángel Alexis Vázquez Sánchez sexually exploited four different minor females, between the ages of 12 and 16, with the intent…

SAN JUAN, Puerto Rico –Martin D. Cruz-Vázquez, President of FiveStar Pest Control Inc. (FiveStar), and Luis O. Agosto-Meléndez, President of CoolBreeze Air Conditioning, Inc. (CoolBreeze) pleaded guilty to the theft of federal program funds provided by the United States Department of Housing and Urban Development (HUD) for the administration of Public Housing Projects (PHPs) in Puerto Rico.According to court documents, Martin D. Cruz-Vázquez…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued an audit report that found the Puerto Rico Department of Housing’s (PRDOH) needs to enhance its fraud risk management practices to better protect over $20 billion in grant funding provided through HUD’s disaster recovery programs in response to Hurricanes Irma and Maria. HUD OIG’s audit found that PRDOH’s fraud risk…

SAN JUAN, Puerto Rico –Today, United States District Court Judge Camille Vélez Rivé sentenced Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corporation (AMAC). The defendants pleaded guilty in April to one count of Theft of Federal Program Funds in relation to the misappropriation of operational funds provided by the United States Department of Housing and Urban Development (HUD) for the…

SAN JUAN, Puerto Rico – On June 8, 2023, a federal grand jury in the District of Puerto Rico returned an indictment charging 40 violent gang members from the municipality of San Juan with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. This investigation was led by the FBI…

SAN JUAN, Puerto Rico –Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corporation (AMAC) pleaded guilty today to one count of Theft of Federal Program Funds in relation to the misappropriation of operational funds provided by the United States Department of Housing and Urban Development (HUD) for the administration of public housing projects (PHPs) in Puerto Rico. According to court…

SAN JUAN, Puerto Rico – Defendant Victor Cruz-Quintero pleaded guilty before United States Magistrate Judge Marcos E. López to one count of misappropriation of government funds from the United States Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. On or about October 28, 2014, defendant Victor Cruz-Quintero used his position as the…

United States Attorney Joe Kelly announced that James R. Barger, Jr., 49, was sentenced today in federal court in Omaha for harboring illegal aliens for commercial advantage and private financial gain. United States District Judge Robert F. Rossiter, Jr., expressing concerns about COVID-19 in the jails, sentenced Barger to two years’ supervised release and required Barger to perform 80 hours of community service per year. Barger will also pay a…