Horne LLP, a company based in Ridgeland, Mississippi, has agreed to pay the United States $1,207,600 to settle allegations of receiving improper payments from federal disaster recovery funds. These funds were tied to services provided in West Virginia during 2017 and 2018, following severe flooding in the region.
In June 2016, significant rainfall led to widespread flooding in parts of West Virginia, damaging infrastructure and homes, leaving many homeless, and causing at least 23 fatalities. In response, the U.S. Department of Housing and Urban Development (HUD) allocated Community Development Block Grant – Disaster Recovery (CDBG-DR) funds to help with recovery efforts.
Horne was chosen by the West Virginia Development Office (WVDO) to create the state's Action Plan for these funds. Initially contracted for $900,000, the contract eventually expanded to over $18,000,000 with additional task orders. This expansion, lacking proper competitive bidding processes, led to scrutiny and a review by the West Virginia Department of Administration Purchasing Division. The Justice administration deemed these additional task work orders illegal, barring payment for the services rendered under them.
Horne had submitted a substantial invoice, which included work deemed problematic by investigators, such as fake consultations and property inspections where they weren't required. The United States Attorney Lisa G. Johnston stated, "Thousands of West Virginians remained in need after historic flooding damaged or destroyed their homes, and the Horne firm took advantage of the situation."
Special Agent-in-Charge Shawn Rice from HUD's Office of Inspector General remarked, "The alleged actions of Horne, LLP undermine the mission of HUD’s disaster recovery efforts and takes critical resources away from those who need them the most."
West Virginia Commission on Special Investigations Director, Rick Eplin, also commented, highlighting the inaccurate reflection of conditions by Horne's data. He acknowledged the citizens' resilience and the positive resolution achieved in partnership with the HUD OIG and the U.S. Attorney’s Office.
The settlement includes cooperation between various entities, underscoring the collaborative effort to ensure that disaster recovery aid reaches the intended recipients effectively.
