oversight

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)

                                                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.




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