oversight

Final Civil Action: The Former Executive Director of the Housing Authority of the City of Beeville, TX, Et Al, Settled False Claims Allegations in the Housing Choice Voucher Program

Published by the Department of Housing and Urban Development, Office of Inspector General on 2018-08-21.

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




                                                        August 21, 2018
                                                                                                 MEMORANDUM NO:
                                                                                                      2018-FW-1802
Memorandum
TO:              Dane M. Narode,
                 Associate General Counsel, Office of Program Enforcement, CACC

                 //signed//
FROM:            Kilah S. White,
                 Regional Inspector General for Audit, 6AGA

SUBJECT:         Final Civil Action: The Former Executive Director of the Housing Authority of
                 the City of Beeville, TX, Et Al, Settled False Claims Allegations in the Housing
                 Choice Voucher Program


                                      INTRODUCTION
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General
(OIG), assisted HUD’s Office of General Counsel, Office of Program Enforcement, in the civil
review of the former executive director of the Housing Authority of the City of Beeville, TX, her
brother, and her sister.

                                       BACKGROUND
The former executive director worked at the Authority for more than 37 years and resigned as
executive director on February 17, 2015. She managed the Authority’s various HUD-funded
public housing programs. As of August 1, 2014, the Authority administered 226 housing choice
vouchers and received Housing Choice Voucher Program administrative fees and housing
assistance payments. 1

                                    RESULTS OF REVIEW
In violation of the housing assistance payment contract’s conflict-of-interest requirements, the
former executive director executed housing assistance payment contracts on behalf of the
Authority with her brother and sister. The former executive director did not fully disclose the
conflicts-of-interest and had not sought a waiver from HUD’s Office of Public and Indian
Housing until the OIG’s review occurred. As a result, both siblings received housing assistance


1
    See OIG audit memorandum 2014-FW-1804, The Management of the Housing Authority of the City of
    Beeville, Beeville, TX, Did Not Exercise Adequate Oversight and Allowed Ineligible and Unsupported Costs,
    issued August 1, 2014.

                                                   Office of Audit (Region 6)
                                    819 Taylor Street, Suite 13A09, Fort Worth, TX 76102
                                         Phone (817) 978-9309, Fax (817) 978-9316
                              Visit the Office of Inspector General website at www.hudoig.gov.
payments as landlords, and the Authority paid them $31,555 for ineligible housing assistance
payments.

On June 21, 2018, the Office of Program Enforcement executed a settlement agreement showing
that HUD had filed a complaint against the former executive director and her siblings under the
Program Fraud Civil Remedies Act of 1986, 2 for causing false claims to be made in HUD’s
Housing Choice Voucher Program. The respondents agreed to pay HUD $40,000 to settle the
false claim allegations. The agreement required an initial payment of $13,320, 53 monthly
payments of $500, and a final payment of $180. The settlement was not an admission of liability
or fault on the part of any parties.

                               RECOMMENDATION
We recommend that HUD’s Office of General Counsel, Office of Program Enforcement,

1A.         Acknowledge that the $40,000 in the settlement agreement represents an amount due
            HUD.

             As of July 18, 2018, the respondents had paid the initial payment of $13,320 and one
             monthly payment of $500. At issuance of this memorandum, HUD OIG will enter a
             management decision into HUD’s Audit Resolution and Corrective Action Tracking
             System, along with any supporting payment information received to date. In
             accordance with HUD Handbook 2000.06, REV-4, the final action target date will be
             set at December 31, 2022. (30 days after the final payment is due).




2
    31 U.S.C. (United State Code) 3801-3812 as implemented by 24 CFR (Code of Federal Regulations) Part 28



                                                      2