We audited the Public Housing Capital Fund program at the Housing Authority of the City of Woonsocket, RI, based on a request by the U.S. Department of Housing and Urban Development (HUD) and because we have not audited the Authority in more than 10 years.  We also received a complaint regarding a property purchase and later demolition next to one of the Authority’s developments.  The audit objective was to determine whether the…

We audited the City of Providence RI’s HOME Investment Partnerships program based on an OIG risk assessment, which ranked the City as the highest risk HOME grantee in New England.  The objective of the audit was to determine whether the City properly committed and disbursed HOME funds in accordance with Federal and U.S. Department of Housing and Urban Development (HUD) rules and regulations. City officials did not properly administer their…

We audited the Housing Choice Voucher and public housing programs at the West Warwick Housing Authority as a result of concerns from the U.S. Department of Housing and Urban Development (HUD) and a hotline complaint.  The audit objectives were to determine whether (1) procurements were executed in accordance with Federal regulations, (2) West Warwick officials established adequate controls over the Housing Choice Voucher and public housing…

We audited Health Concepts Ltd., a management agent that administers six Federal Housing Administration (FHA)-insured nursing homes.  We conducted this audit based on our review of the Pine Grove Health Center.  The review found that Pine Grove’s owners paid salaries for onsite staff that were covered under the management agreement and charged for services that should have been included in the management fee.  Our objectives for…

We audited the Federal Housing Administration-insured Burrillville Nursing Home, Incorporated, doing business as Pine Grove Health Center, based on a U.S. Department of Housing and Urban Development (HUD), Office of Inspector General risk assessment.  Additionally, HUD identified Pine Grove as a high financial risk and a potentially troubled facility, and Pine Grove’s auditors reported substantial doubt regarding its ability to continue as…

We audited the Community Development Block Grant Disaster Recovery (CDBG-DR) assistance grant provided to the State of Rhode Island by the U.S. Department of Housing and Urban Development (HUD) to assist in disaster recovery and rebuilding efforts resulting from damages caused by Hurricane Sandy.  The audit objective was to determine whether State officials obligated and disbursed the grant funds in a timely manner in accordance with HUD…

We audited the State of Rhode Island’s Neighborhood Stabilization Program (NSP) based on a risk assessment that considered the amount of funding, the U.S. Department of Housing and Urban Development’s (HUD) risk assessment, and HUD findings related to one of the State’s subrecipients.  Our overall audit objective was to determine whether the State properly administered the NSP and ensured that costs incurred were in accordance with HUD…

We completed a review of the Rhode Island Housing’s HOME Investment Partnerships Program based on an Office of Inspector General risk assessment of New England HOME recipients that considered the amount of funding provided and prior audit and monitoring findings.  Our audit objectives were to determine whether Rhode Island Housing officials awarded HOME funds to grantees in a reasonable and supported manner and whether HOME funds were…

We audited Semper Home Loans, Inc. (Semper), a Federal Housing Administration (FHA) lender approved to underwrite and close mortgage loans without prior FHA review or approval. We selected Semper because its early payment default rate was higher than the default rate in the local area in which it does business. Our audit objectives were to determine (1) whether Semper acted in a prudent manner and complied with U.S. Department of Housing and…

We audited the Housing Choice Voucher (Voucher) and public housing programs at the Woonsocket Housing Authority (Authority) as part of our annual audit plan. The overall objective of the audit was to determine whether the Authority efficiently and effectively administered its Voucher and public housing programs in compliance with its annual contributions contracts and U.S. Department of Housing and Urban Development (HUD) regulations. In…

PROVIDENCE – A North Providence woman convicted of defrauding multiple publicly-funded programs was sentenced on Tuesday to eighteen months in federal prison for making false statements when applying for a Federal Housing Administration (FHA)-backed mortgage, a Small Business Association (SBA) loan, and for fraudulently applying for government-funded COVID unemployment benefits, announced United States Attorney Zachary A. Cunha. In March 2022,…

PROVIDENCE – A North Providence woman today admitted in federal court that she provided false information to a mortgage lender when applying for a Federal Housing Administration (FHA)-backed mortgage, and that she fraudulently applied for a COVID Economic Injury Disaster Loan (EIDL) and unemployment insurance benefits under both the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act…

PROVIDENCE – A former bookkeeper/office manager who admitted to embezzling more than $740,000 from a Rhode Island law firm that employed her, fraudulently collecting nearly $20,000 in temporary disability insurance payments, and filing fraudulent documents when applying for a mortgage from a Rhode Island bank, was sentenced today to five years in federal prison. According to court documents, Sarah Gaulin, 39, a former employee of the law firm…

PROVIDENCE – A Johnston-based real estate investment firm, the company’s founder, and a person who held himself out to be a negotiator on behalf of financially distressed homeowners but who was, in reality, associated with the real estate investment firm, have been indicted by a federal grand jury on charges they participated in a series of schemes to defraud homeowners and financial institutions. It is alleged in the indictment that members of…

PROVIDENCE, R.I. – The mastermind of a mortgage fraud scheme that defrauded financially distressed homeowners, investors, and financial institutions of nearly $1.5 million dollars was sentenced today to more than 13 years in federal prison. Hasan Hussain, 57, of Princeton, N.J., masterminded a scheme that defrauded distressed homeowners, investors, and financial institutions of fees, rental income, mortgage payment funds, property ownership and…