The feds are finally investigating child welfare fraud in Wayne County, Michigan??
Detroit— Two contractors under scrutiny by federal officials for their work on a controversial Wayne County project are also building an office complex for Turkia Mullin's brother.
The U.S. Department of Housing and Urban Development has ordered the county to end contracts with Parlovecchio Building and the Hennessey Group on a $7 million recreation center because of conflicts of interest.
Anthony Parlovecchio was Mullin's economic development director until this spring, while the Hennessey Group has another county contract to manage federal money.
The two contractors also are working on a $680,000 office building on Schoenherr near 13 Mile in Warren for Dr. Sam Awada, Mullin's brother, according to planning documents obtained by The Detroit News.
The revelation is the latest in a series of associations between current or former county officials and contractors that Wayne County Commission Chairman Gary Woronchak and others find questionable.
"This is turning into a cesspool," said Woronchak, D-Dearborn. "It's hard for me to express how disgusted I am getting with all this, the cozy relationships."
Woronchak added: "What this boils down to is a violation of trust. This changes the landscape of how the county commission is going to deal with this administration."
The commission already is investigating a $200,000 severance paid to Mullin after she resigned to become CEO of Detroit Metropolitan Airport in September and plans to meet today on the issue. The FBI also is investigating the payment, and Mullin was fired Monday from the airport post.
Parlovecchio and Hennessey officials didn't return phone calls for comment. Nor did Awada or Mullin.
According to planning documents, Hennessey is providing civil engineering work and Parlovecchio is listed as the contractor on Awada's 12,100-square-foot medical office building. The city issued permits for the project June 20.
There's no suggestion the involvement of county contractors for a building owned by a relative of the county's former economic development director is improper. But it doesn't look good, said John Chamberlin, a University of Michigan professor of public policy and ethics expert.
"The smell is going to come off about every relationship these people have at this point," Chamberlin said. "It seems a little too cute, too cozy."
Federal officials released a HUD report on Parlovecchio and the Hennessey Group on Wednesday, the same day The Detroit News reported that county commissioners and others are questioning a no-bid contract that could net Parlovecchio $1.65 million for monitoring construction of the county's $220-million jail.
The report focuses on Parlovecchio and Hennessey's work on the nonprofit Helping Youth Prosper and Excel Athletics, or HYPE, for an 110,000-square-foot center under construction in Dearborn Heights. County commissioners are upset about the project because they say eight acres of parkland were sold to the nonprofit for $1 without their knowledge.
Child welfare fraud is not limited services to children. As seen here, it includes the category of land. I will wager this non-profit project, upon completion, had formatted and adopted a revenue-maximization scheme to bilk Medicaid dollars under the guise of "the best interests of the kids".
Child welfare fraud is not limited services to children. As seen here, it includes the category of land. I will wager this non-profit project, upon completion, had formatted and adopted a revenue-maximization scheme to bilk Medicaid dollars under the guise of "the best interests of the kids".
County officials have until Friday to respond to the HUD report. They agree with HUD on Parlovecchio and say his contract with HYPE will end. But the issue with Hennessey is a "clerical mistake" that will be resolved, said Brooke Blackwell, a spokeswoman for Wayne County Executive Robert Ficano.
The findings are "the government equivalent to insider trading," Chamberlin said.
"It just looks bad," Chamberlin said. "It's the reason people don't trust government."
Parlovecchio has said he was set to be paid as much as $270,000 for the HYPE facility. While working for Mullin with the county, he helped the nonprofit find the site.
Not insider trading. Child Welfare fraud. Oh, just read this.
Wayne County Operational Audit Report 2004
The contract violates federal rules that forbid government employees to be hired on federally funded projects within a year of their departure, HUD wrote Deputy County Executive Azzam Elder on Sept. 30.
"His former position provided him with access to insider information," the report reads. "This granted Mr. Parlovecchio undue enrichment."
Parlovecchio now plans to continue on the project as a volunteer, Blackwell said.
Wayne County lacks a so-called "revolving door" policy barring former employees from returning for contracts, but county Commissioner Ilona Varga, D-Lincoln Park, plans to introduce new ordinances that would make it more difficult.
Ask Jewel Ware why there is no "revolving door" policy.
Ask Jewel Ware why there is no "revolving door" policy.
Wayne County Juvenile Assessment Center Audit 2004
The HUD report also found a conflict of interest in the Hennessey Group's engineering contract on the recreation center. The report also claims the Southgate-based firm has a role monitoring Neighborhood Stabilization Program funds for the county — the same type of grants used for the HYPE center.
That is wrong, Blackwell said. The county pays Hennessey $1.1 million to monitor other federal programs, she said.
"In our response to HUD we acknowledge that a clerical mistake was made on the HYPE payment process with Hennessy," Blackwell wrote in an email. "We have agreed to take additional steps to ensure that such mistakes are not taken in the future. [bullshit].
I expect Berg and McQuade to finally make their USAs sing for their supper, now.
I expect Berg and McQuade to finally make their USAs sing for their supper, now.
1 comment:
I was the superintendent that worked on the medical building for Dr Awada and Parlovecchio building. They still owe me for 7 weeks of pay.
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