Federal Reports

Ever since Congress created the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) under the Emergency Economic Stabilization Act (EESA), SIGTARP has delivered for American taxpayers. As a law enforcement office, SIGTARP has a proven record of identifying and investigating fraud and other crime. SIGTARP investigations have resulted in the recovery of over $11.3 billion, criminal prosecutions by the Department of Justice and others of 474 defendants—325 of them sentenced to prison, including 75 bankers. Our investigations have also resulted in enforcement actions against 25 corporations/entities, including enforcement actions against many of the largest U.S. financial institutions. As an independent watchdog, SIGTARP has consistently identified fraud, waste, abuse, ineffectiveness, inefficiency, and risk in EESA programs, and brought transparency to EESA.

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Native American Programs’ (ONAP) coronavirus disease of 2019 (COVID-19) recovery programs.  We performed this audit to provide HUD with insight and a nationwide perspective on the challenges that grantees experienced with those programs.  Our audit objectives were to identify 1) the information, guidance, and training HUD provided to the grantees for the ONAP COVID-19 recovery programs and 2) the challenges that grantees faced in implementing and using program-provided funding.HUD provided information, guidance, and training to assist grantees in navigating the ONAP COVID-19 recovery programs soon after the funding was appropriated through the Coronavirus Aid, Relief, and Economic Security Act and American Rescue Plan Act in 2020 and 2021 to prevent, prepare for, and respond to COVID-19.  Most grantees reported that they were satisfied with the resources and assistance HUD provided.  Despite HUD’s efforts, ONAP COVID-19 recovery program grantees reported facing challenges in using funds that were primarily outside of HUD’s control, including a lack of supplies (and increased cost of supplies), contractors, and capacity.  These challenges occurred in part due to many factors, such as the worldwide supply chain problems; the influx of Federal funding; and existing systemic problems, including the lack of affordable housing.  As a result, approximately $531.5 million of the $1.03 billion that Congress authorized for the ONAP COVID-19 recovery programs remained available to be drawn by grantees (approximately 52 percent) approximately 2 years after the funding was appropriated. We recommend that the Deputy Assistant Secretary for ONAP consider grantee feedback on the challenges they faced as part of ONAP’s planning for technical assistance and training of ONAP COVID-19 recovery program grantees.

We determined the Department did not ensure grant funds and State hunting and fishing license revenue were used for allowable fish and wildlife activities and did not comply with applicable laws.

We determined whether the Rural Utilities Service (RUS) awarded ReConnect Program funding to eligible projects and accurately used the evaluation criteria to score and rank applications.

David Pugliese, a resident of Palm Beach County, Florida, pleaded guilty on July 28, 2023, in U.S. District Court, Southern District of Florida, to Conspiracy to Commit Health Care Fraud. Pugliese was the manager and registered agent of Capital Advantage Diagnostics, LLC, which was purportedly in the business of performing a variety of laboratory tests for various health care providers.Our investigation found that Pugliese and others submitted false and fraudulent claims to Medicare and Amtrak’s insurance providers for claims that were not medically necessary or for laboratory tests that were never performed. Pugliese solicited beneficiary information and specimens for testing through the use of individual laboratory representatives and paid bribes to these representatives for specimens they provided. As a result of the scheme, Amtrak’s insurance providers were fraudulently billed approximately $315,474. Pugliese will be sentenced at a future date.