Probe of Ex-HUD Official Sought

A congressional report released Monday recommends that the Justice Department investigate a former federal housing official alleged to have violated ethics laws by using government contacts to benefit her private business.

The report, endorsed by the House Government Operations Committee, concludes that June Koch, a former Department of Housing and Urban Development official, appears to have broken the law by using her HUD contacts to promote a consulting firm she founded to advise U.S. companies doing business with the Soviet Union.

Koch became HUD assistant secretary for policy development in 1984. Her duties included arranging HUD participation in a number of trade issues involving the Soviet Union.

Meanwhile, prosecutors expect a grand jury to return an indictment today against a woman dubbed “Robin HUD” who admitted taking more than $5 million from the government, sources said Monday.

HUD sources and the Justice Department said prosecutors had presented evidence to the panel in Baltimore allegedly showing that Marilyn Louise Harrell, who told Congress she took $5.5 million from HUD, had misused government funds on several occasions. Harrell said she spent part of the $5.5 million to help the needy.