Suspensions are imposed for a temporary period, pending the completion of an investigation or legal proceeding, such as an indictment. An indictment is a formal action charging an individual with a crime, presented by a grand jury to the court. Suspensions also may be imposed based on adequate evidence to support claims of a serious program violation. Suspensions are temporary, but result in an immediate exclusion from participation in further Government transactions. Suspension is a serious matter and, depending upon the outcome of an investigation or legal proceeding, it may lead to debarment. While the average debarment term is three years, debarments may be imposed for an indefinite period.
Who does HUD sanction?
The following are some occupations of individuals who could be sanctioned:
- Loan Officers
- Builders and Developers
- Real Estate Brokers and Agents
- Management Agents
- Appraisers and Inspectors
- Housing Authority Employees, including Executive Directors
- HUD Grantees and their employees
Basis for a Suspension Referral
Suspensions are imposed for criminal and/or serious HUD program violations, which could include:
- Use of False Documents to Originate FHA-Insured Mortgages
- Diversion of Project Assets
- Embezzlement, Theft, Forgery
- False Statements; False Claims
For a more detailed explanation of suspension actions, see:Title 2, Code of Federal Regulations (CFR), Parts 180 and 2424.
For general information on suspensions, other exclusionary actions taken by the Federal Government and to find a listing of individuals and entities suspended by HUD, please visit the System for Award Management website at: http://sam.gov/