This is some FYI for those out there whom are at their wits end on the HUD 3.0 Fiasco. While on the one hand HUD OIG is supposedly going to conduct an investigation, not a single Contractor whom has submitted Claims to us has been contacted! This, in and of itself, speaks volumes of the Business As Usual policy surrounding the Industry today. Partisan hacks are calling the shots at these tables folks. Make no mistake that you cannot deprive liberty and personal property (in this case payment for services rendered) and justify it with terms such as political expediency to ensure the markets become stable.
Qui tam pro domino rege quam pro sic ipso in hoc parte sequitur — Learn this term! Google it and research the half a million Google hits for lawyers whom will take your case in a heartbeat!
By-in-large, the False Claims Act is what you want to research. Now, I am not a lawyer and I am not giving legal advice. I simply did the research that any defense team for your opponents is going to do and reversed the roles. Understand, this thing is going to come hard and its going to come fast. HUD wants nothing to do with the sordid mess and the Nationals whom held the Contract want it to go away. In essence, the only viable protection I see is filing Qui Tam and seeking protection under the Whistleblower provisions.
I honestly believe, at the end of the day, the Executives simply dropped the ball. I do not find any tell tale signs of nefarious activity. What folks do NOT understand, though, is that someone has to face the music. These same folks know they were duped; they are going to have to pay twice for the jobs. Now, that lies at their feet NOT at the feet of the Contractors. No Contractor asked anyone to hire felons whom were on felony probation and had done time for financial crimes. A redundant internal protocol would have caught this. Where the liability begins to attach, though, is that the Payments rendered by the US Government may come into question under the False Claims Act. Granted, there is a Bond to mop up the mess; the real pucker factor comes into play if HUD OIG elects to pull ALL FILES associated with the 6a and G-d forbid Nationally. Man, I would love to be a fly on the wall seeing those! I guarantee that this is nowhere near the tip of the iceburg.
Anyone can be duped. Hell, we were duped by PPMS South. The Nationals we dealt with stepped to the plate and I take my hat off to them! There is traction gaining amongst news outlets to begin to investigate the inner sanctums of the Industry. Matt Tiabbi over at Rolling Stone has been writing about the Mortgage Crisis for years now. It would strike me as prudent to meet at the Association (infer here Country Club, Industry Club or where ever Execs meet) and sit down the unruly kids and tell them that this is a no winner. It would also strike me as prudent to counsel recalcitrant peers that retaliation is a dangerous activity.