ALBANY, NEW YORK – Movement Mortgage, LLC, has agreed to pay the United States $23.75 million to resolve allegations that it violated the False Claims Act  by failing to comply with material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA), United States Attorney…

Written Testimony of Inspector General Rae Oliver Davis, U.S. Department of Housing and Urban Development before the U.S. House of Representatives, Committee on Financial Services, Subcommittee on Housing and Insurance: “HUD Oversight: Testimony of the HUD Inspector General” Hearing Video

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued two audit reports examining the loss mitigation options that loan servicers provided to borrowers with Federal Housing Administration (FHA)-insured loans after their COVID-19 forbearance ended.  The first report broadly examined whether servicers of FHA loans provided proper loss mitigation assistance to homeowners…

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…

WASHINGTON DC— Today, the U.S. Housing and Urban Development (HUD) Office of Inspector General (OIG) issued an audit report about HUD’s Real Estate Assessment Center’s (REAC) process for inspecting the physical conditions of public housing units.  HUD ensures that affordable housing communities are safe and up to code by having HUD contractors periodically inspect properties receiving assistance through HUD’s public housing program, using…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued a management alert that recommends HUD take additional steps to protect contractor employees from retaliation for blowing the whistle on wrongdoing.   As a result of several recent investigations, HUD OIG learned that employees of thousands of contractors who receive funds from HUD may not be protected against…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL DiMASSA, 32, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 27 months of imprisonment, followed five years of supervised release, for his involvement in schemes that resulted in the theft of more than $1.2 million dollars in COVID relief funds and other funds from the City of West Haven.  Judge…

WASHINGTON DC— Today, the U.S. Housing and Urban Development (HUD) Office of Inspector General (OIG) issued an audit report about HUD’s Real Estate Assessment Center’s (REAC) process for inspecting the physical conditions of public housing units. REAC provides HUD staff and program participants with information about HUD’s affordable housing portfolio by assessing different aspects of public and multifamily housing properties, including, among…

Orlando, Florida – United States Attorney Roger B. Handberg announces that Oliver Barrington King (44, Deland) has pleaded guilty to theft of government funds. King faces a maximum penalty of 10 years in federal prison. In addition, King has agreed to forfeit $16,618.91, the amount he obtained as a result of the offense. A sentencing date has not yet been scheduled. According to the plea agreement, King was the property manager for an apartment…

BOSTON – A Maine woman pleaded guilty yesterday to stealing federal housing benefits from at least December 2004 through February 2020.  Rebecca Amelia Cranford, 63, pleaded guilty to one count of theft of government funds. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Aug. 17, 2023. Cranford was arrested and charged in September 2021.   In the early 2000s, Cranford was engaged by the owners of a…

WASHINGTON DC— Today, the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) issued an audit report about HUD’s compliance with the Payment Integrity Information Act of 2019 (PIIA).  Congress enacted the PIIA in March 2020 to safeguard Federal funds by reducing payments made for an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements.   The law…

The Justice Department announced today that it has filed a lawsuit against Timothy Britton, the owner and operator of rental properties in the Falls Creek, Pennsylvania, area and Britton Enterprises LLC, doing business as “Tim’s Apartments,” which operates the rental properties, alleging sexual harassment and retaliation in violation of the Fair Housing Act. The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania…

The Justice Department today announced the launch of the Puerto Rico and U.S. Virgin Islands (USVI) Environmental Crimes Task Force to investigate and prosecute violations of federal law harming the environment, wildlife and human health, and associated fraud, waste and abuse in the region. The creation of the task force comes one year after the Justice Department announced  its Comprehensive Environmental Justice Enforcement Strategy…

  More than $10 Million Secured for Victims of Sexual Harassment Through Department’s Sexual Harassment in Housing Initiative The Justice Department announced today that it has secured an agreement to resolve a lawsuit alleging that New London, Connecticut, landlord Richard Bruno violated the Fair Housing Act by sexually harassing female tenants and applicants. The settlement also resolves claims against Domco LLC and Domco II LLC, which…

BECKLEY, W.Va. – Timothy Gross, 39, of Beckley, pleaded guilty today to wire fraud, admitting to making a fraudulent payment with an employer-issued credit card as part of a scheme to divert more than $65,000 in credit card charges to his personal bank account. According to court documents and statements made in court, Gross was hired by Amerihost LLC in 2020 as a maintenance worker for Beckley Town Homes, a multi-unit apartment building in…

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONNA CARNEY, 67, of Canton, was sentenced today by U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to one month of imprisonment, followed by three years of supervised release, for defrauding a U.S. Department of Housing and Urban Development (“HUD”) program. According to court documents and statements made in court, in approximately 1995, Carney…

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…

Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Omayra Ujaque (52, St. Cloud) guilty of three counts of bank fraud and one count of aggravated identity theft. Ujaque faces a maximum penalty of 30 years’ imprisonment for each bank fraud count and a mandatory 2-year sentence for the aggravated identity theft county. Her sentencing hearing is scheduled for July 5, 2023. Ujaque had been indicted on…

URBANA, Ill. – A Champaign, Illinois, man, Lekevie C. Johnson, formerly of the 2000 block of Clayton Boulevard, was sentenced on April 10, 2023, to 10 months of imprisonment and ordered to pay $59,358.90 restitution following his December 2022 guilty pleas to financial crimes including federal program misapplication, student loan misapplication, and false statement in bankruptcy. Johnson was formerly the pastor of Mount Calvary Missionary…

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…