HUD Rocked By New Scandals

Still reeling from a series of employee and operational scandals under former Secretary Shaun Donovan and current Secretary Julian Castro, the department is involved in two new corruption scandals its officials say they will do nothing to correct. In fact, in one of the capers, the HUD official accused of fraud has been promoted; and in the other, two senior Obama administration appointees will retain their salaries even though the Government Accountability Office, the congressional watchdog over the Executive Branch, says federal law requires them to surrender their pay. In 2012, the House Committee on Oversight & Government Reform began an investigation into allegations then Assistant Attorney General Tom Perez, head of the Civil Rights Division, secretly arranged to quash an investigation in Minnesota if the city dropped its landlord-related lawsuit questioning the government application of the “disparate impact” theory in racial discrimination matters. Disparate ImpactHUD and the Justice Depart [...]

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