Federal agents on Wednesday searched the Cleveland home of the founder and CEO of the Millennia Companies, which owns troubled affordable housing properties across Memphis.
“It’s important to remember that an investigation is just that,” wrote Marisa T. Barden, Sinito’s attorney, in a statement to FOX13. “There have been no arrests and no charges filed.”
According to a letter obtained by FOX 8 News in Cleveland, the US Department of Housing and Urban Development (HUD) is accusing Sinito’s company of mismanaging federal dollars.
“Nearly $4.9 million is missing or was improperly taken from 19 HUD-insured or HUD-subsidized properties,” the letter reads. “Violations of these requirements jeopardize the financial health of the properties, jeopardize the housing stability of the tenant families, and increase the risk of a default to HUD. Your misconduct is so serious and compelling as to affect your present responsibility.”
As FOX13 reported in December , HUD sought to bar Millennia from entering into any new federal contracts because of “financial mismanagement.” Then in April, FOX13 reported Millennia planned to exit the affordable housing business by selling most of its properties.