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HUD Ex-Official Faulted in Lobbying Investigation

by devteam February 26th, 2014 | Share

The House Financial Services Committee (FSC)rnhas released advanced information regarding an investigation conducted by thernOffice of Inspector General (OIG) of the Department of Housing and UrbanrnDevelopment (HUD).  The FSC report wasrnbased on a draft report due from OIG some time this week, was obtained by The Washington Times.  The investigation had been prompted by arnrequest from Rep. Patrick T. McHenry (R-NC) chairman of the investigativernsubcommittee of the FSC.  </p

According to the release the OIG has concluded that former HUD deputy secretaryrnMaurice Jones who is now the commerce secretary in the Commonwealth ofrnVirginia, improperly lobbied Congress last year while still at HUD.  Jones allegedly sent an email to more thanrn1,000 people including 46 who were also employed at HUD, asking them to contactrnsenators to, in the words of the FSC memo ‘”defend against efforts by somernRepublicans’ to prevent a housing bill to come up for a vote.”  The email also reportedly asked recipients to tellrnsenators to vote “no” on another amendment.</p

The OIG has, again according to FSC, concluded that Jones and four others atrnHUD appear to have violated anti-lobbying laws, which restrict the use of fundsrnfor publicity or propaganda directed at pending legislation before Congress.rnThe probe also concluded that Mr. Jones violated internal HUD policy onrnlobbying by federal employees.</p

Among other HUD employees singled out by OIG was Elliot Mincberg, actingrngeneral deputy assistant secretary. He was reportedly found to have tried to interferernwith the investigation by “interrupting and inserting himself into an ongoingrnwitness interview” and by threatening agents that he would ensure they wererncharged as a result of “inappropriate actions,” which he did not clarify. </p

Mr. Mincberg told investigators that HUD had to protect the list of emailrnrecipients who received Mr. Jones’ message, and asked the inspector general’srnoffice for assurances that the information wouldn’t be turned over torncongressional Republicans. </p

The OIG report is said to quote Jones that he didn’t know about HUD’s policyrnprohibiting lobbying on pending legislation; “[Deputy Secretary] stated that itrnwas articulated to him that ‘I could do things that others could not.'”  </p

The Justice Department declined to open a criminal investigation into Mr.rnJones, but the OIG has referred their findings to the office of specialrncounsel, which enforces federal laws that prohibit an official from coercingrnemployees’ political activities. The Government Accountability Office also isrnconducting a review and McHenry’s subcommittee will hold a hearing on therninternal investigation Wednesday. </p

“We take the issues raised in the report very seriously,” HUD spokesmanrnJereon Brown told the WashingtonrnTimes.   “We will continue to cooperate with ongoingrninvestigations and will have no further comment while this matter and thernreport remains under review and cannot comment on personnel matters.” In arnletter last year to Mr. McHenry, HUD Secretary Shaun L.S. Donovan said therndepartment had reviewed its guidance and ethics training.</p

Jones was named to newly elected Virginia Governor Terry McAuliffe’s Cabinet inrnJanuary

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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