The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, reviewed Blue Mountain Hospital (Hospital) based on a request from the Office of Healthcare Programs. The objective of our review was to determine whether the Hospital had adequate written procedures for collecting, dispersing, and accounting for project funds. The Hospital did not have adequate written procedures for collecting, disbursing, and accounting…

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…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, We reviewed the Housing Authority of the County of Salt Lake’s (Authority) Public Housing Capital Fund Stimulus (formula) Recovery Act Funded grant (grant) based on a risk assessment we completed and the results of a monitoring review performed by the Denver Office of Public Housing. The objective was to determine whether the Authority properly obligated…

The U. S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Ogden, UT’s (City) HOME Investment Partnerships Program (HOME) to determine whether the City effectively established HOME projects, ensured that HOME funds were used for eligible HOME expenses, and properly monitored the HOME projects. The City appropriately established HOME projects, used HOME funds for eligible HOME expenses, and…

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited SecurityNational Mortgage Company (SecurityNational), a Federal Housing Administration (FHA)-approved direct endorsement lender, to determine whether it properly underwrote insured loans and whether its quality control function met requirements. SecurityNational did not follow HUD regulations when underwriting 18 FHA-insured loans. One of the…

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…