Politics

Feds Probe Move By Ex-Snyder Official Scott Woosley

October 20, 2014, 6:13 AM

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Scott Woosley (Photo: Woodtv)

A potential scandal is brewing.

Paul Egan of the Detroit Free Press writes that the Office of Inspector General of HUD is investigating a complaint filed by the  Michigan Democrats that alleges a potential conflict of interest or misuse of federal funds by former Michigan State Housing Development Authority executive director Scott Woosley, an official confirmed Friday.

You might recall that Woosley resigned in August after the Free Press reported he had spent tens of thousands of dollars on travel and expensive dining.

But this time the issue is over a business he owns and HUD funds.

The Freep reports that the allegations are that Woolsey, while heading MSHDA, was administering a government grant to his private real estate investment company, Labor Management Fund Advisors of Troy.

The Freep reports that records show Labor Management got more than $1 million from a $98-million HUD grant that the Michigan State Housing Development Authority received in 2008 for its Neighborhood Stabilization Program.

Michigan Democratic Party Chairman Lon Johnson alleges in the complaint with HUD that the  administration of Gov. Rick Snyder "either permitted or turned a blind eye to a major conflict of interest involving the head of his housing agency."

Mark Schauer, Snyder's Democratic opponent, issued a statement Monday morning:

"This federal investigation underscores the pattern of mismanagement we've seen in the Snyder administration. Ultimately, the decision to put Scott Woosley in charge of managing a federal grant that he stood to profit from rests with Rick Snyder himself."


Read more:  Detroit Free Press


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