Congressman John Shimkus is requesting an investigation into business dealings of the Vermilion County Housing Authority. Shimkus wrote to Department of Housing and Urban Development Acting Inspector General Helen Albert this week requesting an investigation into whether any federal laws or regulations were violated. The local Congressman says during a recent meeting with HUD officials, his staff, a local bank and the vermilion County board chairman, several potential violations were brought to his attention.
Board members of the Vermilion County Housing Authority recently resigned over the pending financial matter. The problem began with former executive director Tony Hasbargen, took out a loan in the amount of 1.6 million dollars through a local bank without permission from the local housing authority board or HUD. Several financial discrepancies were found as a result of an audit, and Hasbargen was fired at that time. The federal agency will not allow the housing authority to use federal funds to repay its loan
Longview Bank is seeking its money, and several suits have been filed.