Federal auditors report inadequate accounting at social service charity

(Source: Mental Health Systems, the San Diego charity that last year was the subject of allegations of misconduct and lavish spending on luxury hotels and limousines, failed to properly account for more than $140,000 in federal housing funds, a new audit states.

“MHS did not allocate its payroll costs to Continuum of Care and Supportive Housing Program grants in accordance with program requirements,” U.S. Housing and Urban Development auditors said. “As a result, HUD had no assurance that $142,181 spent on salaries and benefits was appropriately charged to the grants.”

Charity officials said all of the spending on federal housing programs was appropriate but they improved their bookkeeping practices nonetheless.

“MHS has already developed, and in February 2017, implemented a revised policy for employee time allocation to its HUD grant programs,” chief executive James Callaghan wrote to auditors last month...

Man Sentenced to 14 Years in Squatting Case

  (Source: A man previously described as the ring leader of a criminal enterprise that illegally took possession of several homes in the Chicago area has been sentenced to 14 years in prison, according to the Cook County state's attorney's office.

David Farr was sentenced Monday by Cook County Circuit Court Judge Alfredo Maldonado. He had been convicted last Sept. 30 of felonies, including theft of over $1 million and financial institution fraud.

Felonies against Farr and three other men had been announced by authorities almost two years ago, who said they illegally took possession of 14 vacant homes around the city and lived in them or rented them out to others...