U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OFFICE OF INSPECTOR GENERAL March 23, 2018 MEMORANDUM NO: 2018-CF-1802 Memorandum TO: Craig T. Clemmensen Director, Departmental Enforcement Center, CACB //signed// FROM: Christeen Thomas Director, Joint Civil Fraud Division, GAW SUBJECT: Independent Public Accountant Debarred for Violating Federal Housing Administration Requirements for Multifamily Properties INTRODUCTION The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, assisted the U.S. Attorney’s Office for the District of Minnesota in the investigation of Willow Run and Willow Run II. Willow Run and Willow Run II are two Federal Housing Administration (FHA)-insured multifamily properties located in Willmar, MN. BACKGROUND An independent public accountant performed audits of the Willow Run (FHA no. 092-44100) and Willow Run II (FHA no. 092-35650) multifamily properties for the years 2005, 2006, 2007, and 2008 under the name of The Blackwing Group, LLC. According to the Minnesota Board of Accountancy, neither the independent public accountant nor The Blackwing Group, LLC, had ever been licensed to perform public accounting engagements in the State of Minnesota. The same independent public accountant also performed audits of the Willow Run and Willow Run II properties for the years 2009, 2010, 2011, and 2012 under the name of an unrelated firm and falsely claimed to be working for a licensed certified public accountant firm that had never employed her. Joint Civil Fraud Division 400 State Avenue, Suite 501, Kansas City, KS 66101 Visit the Office of Inspector General website at www.hudoig.gov. RESULTS OF INVESTIGATION In August 2017, HUD’s Departmental Enforcement Center notified the independent public accountant of her proposed debarment from future participation in procurement and nonprocurement transactions, as a participant or principal, with HUD and throughout the Executive Branch of the Federal Government, for an indefinite period from the date of the final determination. In October 2017, HUD affirmed the proposed debarment and notified the independent public accountant that she had been debarred for an indefinite period. RECOMMENDATION We recommend that HUD’s Departmental Enforcement Center 1A. Ensure that HUD completes the debarment process and appropriately notifies the independent public accountant of the debarment decision. HUD implemented the recommendation on October 2, 2017, and the final action will be recorded in HUD’s Audit Resolution and Corrective Action Tracking System. Therefore, the recommendation is closed upon issuance of this memorandum. 2
Final Civil Action - Independent Public Accountant Debarred for Violating Federal Housing Administration Requirements for Multifamily Properties
Published by the Department of Housing and Urban Development, Office of Inspector General on 2018-03-23.
Below is a raw (and likely hideous) rendition of the original report. (PDF)