We completed an audit of the Housing Authority of the City of Asbury Park, Asbury Park, New Jersey. The objectives of the audit were to determine whether (1) capital funds were properly expended and obligated in accordance with HUD requirements, (2) salaries and related benefits allocated to different programs were reasonable and supported, and (3) controls over maintenance and repairs were adequate. The Authority did not adequately administer…

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…

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…

NEWARK, N.J. – A Newark business owner today admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.Irwin Sablosky, 64, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.“As he…

TRENTON, N.J. – A Burlington County, New Jersey, man and a Mercer County, New Jersey, man made their initial court appearances today on charges of participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections and meal deliveries to needy Trenton residents, U.S. Attorney Philip R.…

Program Focused on Combatting Sexual Harassment in Housing and Eliminating Environmental Hazards in HUD-Assisted HousingNEWARK, N.J. – U.S. Attorney for the District of New Jersey Philip R. Sellinger and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a summit today focused on promoting the health, safety, and civil rights of tenants living in HUD-assisted housing. The program focused on combatting…

NEWARK, N.J. – A former city of Newark official who served as deputy mayor and director of the Newark Department Economic and Housing Development (DEHD) and served as executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) today admitted conspiring with two Newark business owners to obtain corrupt payments intended to influence and reward him for assisting the business owners with…

An Amarillo city employee pleaded guilty today to embezzling more than $465,000 in funds meant to provide shelter for homeless people, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.Amy Dixon, 44, the City of Amarillo’s former Homeless Management Information Specialist, pleaded guilty Monday to a criminal information charging conspiracy to embezzle from a federally funded program.In her role, Ms. Dixon was responsible…

HOUSTON – A 45-year-old Houston area resident has pleaded guilty to fraudulently applying for and receiving a newly rebuilt house worth $314,000, announced U.S. Attorney Alamdar S. Hamdani.Christopher Montealegre admitted to one count of theft of government funds after he knowingly applied for relief intended for victims the hurricane impacted through a program the U.S. Department of Housing and Urban Development (HUD) administered. Montealegre…

WACO, Texas – An Austin woman was arrested this week on criminal charges related to her alleged embezzlement of federal funds for personal use while serving as the executive director of the Killeen Housing Authority (KHA).According to court documents, DeAdra Johnson, 52, allegedly stole thousands of dollars designated for KHA programs and used them for personal use. A federal indictment alleges that Johnson used the stolen funds to pay for…

NEWARK, N.J. – An Essex County man was sentenced today to time already served – 20 months – for conspiring to commit mortgage fraud, U.S. Attorney Philip R. Sellinger announced. Cabral Simpson, 47, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiring to commit wire fraud. U.S. District Judge Julien X. Neals imposed the sentence today in Newark…

LAREDO, Texas – A 38-year-old man was sentenced for his role in a complex mortgage fraud scheme, announced U.S. Attorney Alamdar S. Hamdani.Edmundo De La Torre pleaded guilty April 19 to orchestrating a mortgage fraud scheme in which he altered hundreds of documents to get otherwise unqualified buyers’ approval for government-backed mortgages.U.S. District Judge Marina Marmalejo has now ordered De La Torre to serve 36 months in federal prison to…

CAMDEN, N.J. – An Atlantic City woman today admitted engaging in a fraudulent scheme through which she defrauded elderly victims of over $100,000, U.S. Attorney Philip R. Sellinger announced today.Victoria Crosby, 46, of Atlantic City, New Jersey, pleaded guilty on Nov. 16, 2023, before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with wire fraud.According to documents filed in the case and…

NEWARK, N.J. – An Essex County man today admitted that he conspired with others to commit mortgage fraud, U.S. Attorney Philip R. Sellinger announced.  Cabral Simpson, 46, of Orange, New Jersey, pleaded guilty by before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiring to commit wire fraud. According to documents filed in the case and statements made in court: Simpson, a real estate investor,…

McALLEN, Texas - A 51-year-old Rio Grande City resident and employee of the U.S. Department of Agriculture (USDA) has been charged with bribery of public officials and witnesses, announced U.S. Attorney Alamdar S. Hamdani.  Roberto Rodriguez, 51, turned himself in to authorities today. He is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker at 9 a.m. Also taken into custody and appearing today are Jose…

NEWARK, N.J. – A Hudson County, New Jersey, woman pleaded guilty today to stealing over $1.5 million from over 100 victims made up mainly of non-profits, private schools, and religious institutions throughout New Jersey, U.S. Attorney Philip R. Sellinger announced. Yezenia Castillo, 46, of Hoboken, New Jersey, pleaded guilty before U.S District Judge Susan D. Wigenton, to an information charging her with one count each of wire fraud and tax…

HOUSTON – A 61-year-old man has been sent to federal prison following his conviction of money laundering as well as conspiracy to commit and committing wire fraud, announced U.S. Attorney Alamdar S. Hamdani. A federal jury deliberated for approximately half a day following an eight-day trial before returning a guilty verdict Sept. 20, 2022, on all counts against Clarence Roland III. Today, U.S. District Judge Lee H. Rosenthal ordered Roland to…