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The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area.  We found that a realtor purchased a property in January 2010 using a limited liability company he controlled while also acting as the seller’s agent.  

On October 23, 2015, HUD served a complaint on the realtor, alleging that he made a false certification on the closing worksheet and seeking a penalty and an assessment under the Program Fraud Civil Remedies Act. 

HUD and the realtor entered into a settlement as both parties mutually desired to avoid further expense and litigation and to reach a satisfactory resolution of this matter.  The settlement agreement did not constitute an admission of liability or fault on the part of any party and was voluntary and entered into by the realtor after due consideration of the terms of the agreement.  The realtor agreed to pay HUD $10,000.