Federal Reports

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of portability in the Housing Choice Voucher Program based on a congressional inquiry from Senator Grassley’s office. Our audit objective was to determine whether HUD had adequate oversight of portability in the Housing Choice Voucher Program; specifically, to determine whether (1) HUD had adequate policies and procedures to identify and evaluate the impacts portability may have on public housing agencies’ Housing Choice Voucher Programs and (2) HUD’s financial information relating to portability set-aside and additional administrative fees was correctly calculated and distributed in accordance with its requirements.HUD’s Office of Public and Indian Housing generally had adequate oversight of portability in the Housing Choice Voucher Program; however, improvements could be made. Although HUD reviews public housing agencies’ programs, it did not specifically identify and evaluate the effects of portability. As a result, HUD could miss the opportunity to assess the impact of portability on public housing agencies’ programs and use the information to make decisions that could (1) assist public housing agencies experiencing difficulties with managing the portability component of the program and (2) result in programmatic or process improvements. In addition, HUD generally calculated portability set-aside funding for increased costs and special administrative fees for portability correctly with a few exceptions. As a result, HUD overpaid $115,335 in set-aside funding and $133,179 in special administrative fees. It also underpaid $35,189 in special administrative fees.We recommend that HUD (1) conduct an assessment of the impact of portability and determine whether technical assistance is necessary for certain public housing agencies, (2) pursue collection or recapture $248,514 for the overpayments and distribute $35,189 for the underpayments of set-aside funds and special administrative fees, and (3) review the calculations and distributions of funds for category 2b portability set-aside and special administrative fees for portability to ensure accuracy.

Babar Iqbal, a doctor from Los Angeles, California, and owner of Riverside Regional Surgery Center, pleaded guilty on June 10, 2020, in Superior Court of California, Riverside to several charges related to health care insurance fraud. As part of the scheme, Iqbal targeted patients whose insurance paid higher reimbursement amounts to providers who were considered out of network and performed services that were medically unnecessary. Iqbal also conspired with marketers to obtain fraudulent insurance policies for individuals who did not have health insurance. The marketers then referred these individuals to Iqbal at the Riverside Regional Surgery Center. In return, the marketers received a commission based on the reimbursement amount the insurance companies paid Iqbal. The Amtrak health insurance plan was fraudulently billed approximately $1,653,210 as a result of the scheme. Iqbal will be sentenced at a future date.

Joseph Kieffer, a marketer from Los Angeles, California, pleaded guilty on July 20, 2020, in U.S. District Court, Central District of California, to conspiracy to pay illegal renumerations related to a health care fraud scheme. Kieffer paid kickbacks to patients and to marketers for patient referrals for medically unnecessary compounded drugs. As part of the scheme, Fusion RX Compounding Pharmacy then billed health care providers for the compounded drugs at rates much higher than average medications. The owner of Fusion Rx Compounding Pharmacy was also charged for his role in the scheme. The Amtrak health insurance plan was fraudulently billed approximately $17,000 as a result of the scheme. Criminal judicial proceedings are pending.