Embezzlement of HUD Funds Reported Probed
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NEW YORK — Contractors working for the Department of Housing and Urban Development embezzled millions of dollars the government should have received from homes sold after foreclosure, a newspaper reported.
The New York Times reported in today’s editions that private escrow agents took the money with little fear of recrimination from the Ronald Reagan Administration.
HUD Inspector General Paul A. Adams has been ordered by HUD Secretary Jack Kemp to conduct investigations in Denver, Houston, New Orleans, Los Angeles and Washington, the newspaper said.
“There are several investigations and/or prosecutions around the country in which the loss to HUD or the funds allegedly appropriated to HUD exceed $1 million each,” said Gary P. Jordan, an assistant U.S. attorney in Baltimore who is handling a Maryland case.
The investigation, the newspaper reported, is separate from a congressional inquiry into allegations that influence-peddling at the department allowed more than a dozen former Reagan Administration officials to benefit from housing programs meant for the poor.
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