Federal agents questioned Providence Housing Authority officials this week while investigating claims of widespread fraud and abuse at the agency.
The Providence Journal reported that U.S. Department of Housing and Urban Development agents questioned the Housing Authority’s executive director, Stephen O’Rourke, and its executive administrative officer, Elizabeth Herosy, on Wednesday.
Herosy filed a whistleblower complaint against O’Rourke and the authority claiming the agency awarded no-bid contracts, hired friends of management, misused federal funds and committed other wrongdoing.
O’Rourke denied the allegations and welcomed an outside review.
Herosy’s allegations have attracted attention in Congress. U.S. Sen. Charles Grassley of Iowa, who has been tracking problems at housing authorities nationwide, is seeking detailed information about HUD’s oversight of the Providence Housing Authority, which gets most of its $44 million budget from federal funding.