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HUD Watchdog Group Caught Hiding Fraud Reports On Widespread Corruption

HUD Watchdog Group Caught Hiding Fraud Reports On Widespread Corruption
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Exclusive: Watchdog Kept 14 Fraud Reports Secret | The Daily Caller

A government watchdog withheld at least 14 reports that revealed department-wide problems that allow fraud and waste at a cabinet-level agency, The Daily Caller News Foundation's (TheDCNF) Investigative Group has learned.

The reports concern issues plaguing the Department of Housing and Urban Development (HUD), including felons illegally living in federally-funded homes, tax fraud and millions of dollars sitting in unused bank accounts for years. The department's 2017 budget is $48.9 billion and it has 8,375 employees.

At least three of those reports were also kept from HUD, meaning top department officials may not even be aware of the problems and suggested remedies. One unreleased 2011 report revealed that 1,300 fugitives – including rapists and murderers – were illegally living in HUD-funded homes, and local authorities managing the properties refused to evict them, TheDCNF previously reported.

The 2011 report "should not have been released" to TheDCNF, according to IG spokesman Darryl Madden, who added that data on which it was based wasn't valid. Yet the IG didn't revisit the issue until Sen. Chuck Grassley requested an update in 2016. The IG was again unable to determine how many fugitives live in HUD-funded housing.




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