The Feds' Low Hanging Fruit

Ouch! Don't you hate getting pinched?

Folks, it has been a very interesting week in our city, and if sources are correct it ended with a bang.

Or should I say a pinch?

GA will err on the side of caution and wait for further details. But if the 'word on the street' is true, this is a bombshell development which could impact beyond the borders of Hoboken into Union City, West New York, North  Bergen....  who knows.    If true, it bodes sleepless nights for some, relief for others.

Returning to what we know...

Eyewitnesses reported Federal agents at the HHA this week and an HHA maintenance worker reported the visitors were accessing "boiler rooms".

What does this tell GA?  Speculation...

It sounds like the Feds (finally) came to our garden of corruption and made a beeline for the low-hanging fruit.  Real low and ripe-for-picking. 

One federal agency (for example, the F.B.I. or O.I.G.) can easily access records, documents, correspondence, from another federal agency (FEMA) without courts, subpoenas, or any legal wrangling whatsoever.

Thus the F.B.I. or O.I.G. could obtain the application of a local Housing Authority for FEMA grant money to repair or retrofit facilities against future storms (such as $ to raise building generators). They could obtain all records relating to whether the grant was awarded, how much money, and which agent of the Housing Authority actually signed for it and took the money.   If a check was issued to that Housing Authority, the Feds could track the deposit.  Finally, the Feds would ascertain the existing conditions at the facilities to complete their investigation into whether the work was performed- or not.

In order to discourage (rampant) abuse of federal grant money, GA believes the Feds might choose to make an example of a HUD official  involved in such behavior.

Whoever or wherever that may be. (I dunno, do you?)

Said hypothetical official may rat out others for a lighter penalty.  And if that official allegedly had tapes of elected or appointed officials, developers, discussing a proposed federal housing project worth millions... wow, the Feds would eat that up.   

Yum, yummy!

Getting back to Hoboken, there is a matter of a  FEMA grant allegedly given to the HHA in 2011 after Hurricane Irene. The grant was allegedly allocated to raise building generators for future storms (cough, cough, Sandy, cough, cough...)

Those generators weren't raised.

What happened to the (alleged) FEMA grant money?

Is that why the Feds were poking around HHA boiler rooms?  GA has no idea.  Do you?

(FEMA) Release date: November 29, 2011 
NEPTUNE, N.J. – Federal disaster assistance for Hurricane Irene damage in New Jersey reached nearly $256 million through Nov. 28, the Federal Emergency Management Agency (FEMA) announced: 

• 47,950 registrations approved for assistance since the disaster declaration Aug. 31
• Nearly $147.7 million approved under the Housing Assistance program for housing-related repairs

So which federal agency came to the HHA?

The FBI?

Public corruption is a breach of trust by federal, state, or local officials—often with the help of private sector accomplices. It’s also the FBI’s top criminal investigative priority.

The Department of Housing and Urban Development OIG?

HUD's Office of Inspector General (OIG) Office of Investigation is the law enforcement component of the Department. Our special agents have experience in conducting investigations in all programs of the Department to include tenant and public housing authority (PHA) fraud, waste, and abuse. Unlike other law enforcement agencies, OIG is a part of the Department and has a vested interest in maintaining the integrity of Departmental program.

 The Department of Homeland Security OIG?

DHS Program Fraud / Financial Crimes involving blackmail, contract fraud, grant fraud, immigration fraud and program theft;

Stay tuned.

He had a dream.