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The OIG investigation focused on the Cairo, IL, based Alexander County Housing Authority's (ACHA) improper usage of HUD subsidized Asset Management Project (AMP) funds with prosecutorial consideration being given to 18 USC 666 (Theft, Intentional Misapplication of Funds), 18 USC 1001, (False Statements) and 18 USC 371 (Conspiracy). These funds (also referred to as operating funds and low rent housing project funds) and Capital funds are governed by 24 CFR 9908 and OMB Circular A-133. Specifically, the allegations were:

• The ACHA improperly used AMP funds to pay for retirement buyout packages and post-employment contracts for a select employees;

• ACFIA credit cards were misused during travel and training events;

• The ACHA improperly purchased of a truck from an ACHA employee; and 

• ACHA maintenance personnel were pressured by supervisors to provide money for the gifts for the ACHA ED.

• ACHA Payments to ACHA