HUD Aware of Bad Checks Months Ago
The Department of Housing and Urban Development was aware five months ago that Maryland escrow agent Marilyn L. Harrell had written $2.9 million in bad checks to the agency, according to an internal agency memorandum.
The Philadelphia regional office of HUD uncovered the irregularity as part of a special investigation of its Washington field office, which it found to be rife with serious management deficiencies in its property sales division.
The investigation also disclosed that $12 million in sales proceeds in the Washington area was lost or could not be accounted for. The figure is $2 million more than initially reported.
A memo from then-regional administrator Kenneth J. Finlayson to HUD headquarters, dated Feb. 6, contends that the Washington office “failed to deal with” Harrell and her bad checks dating from July through September, 1988, and as a result continued to refer work to the Maryland agent through Dec. 7. In the memo, the regional administrator said the office should have been monitoring Harrell and other agents.
Harrell is one of 12 escrow agents under investigation by HUD for possibly skimming as much as $20 million in sales proceeds.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
