The Department of Housing and Urban Development (HUD) is investigating whether Colorado providers helped nearly 3,000 people swindle taxpayer money from Uncle Sam, The Post has learned.
The investigation comes after an internal HUD audit found that benefits were granted to 221 dead people, while another 87 were otherwise ineligible.
The department also said that another 2,519 beneficiaries will need to undergo additional verification.
“From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action,” a HUD spokesperson told The Post.
The apparent fraud took place in most of the Rocky Mountain State’s 59 public housing agencies (PHAs) and was particularly pronounced in the Denver Housing Authority, a source said.
HUD officials are set to demand PHAs perform additional verification of beneficiaries and remove both deceased tenants and ineligible beneficiaries from their rolls.
