Horne LLP, based in Ridgeland, Mississippi, has consented to a financial settlement with federal authorities, agreeing to pay $1,207,600. This resolution addresses civil complaints regarding improper payments the firm received from federal disaster recovery grants during its operations in West Virginia in 2017 and 2018.
The catalyst for the situation was the severe rainfall and resulting catastrophic floods on June 23, 2016, in parts of Southern West Virginia. This led to significant destruction of homes, businesses, and infrastructure. The subsequent presidential disaster declaration brought federal funds through the U.S. Department of Housing and Urban Development (HUD) to aid recovery efforts, focusing on housing rehabilitation and replacement for those in need.
Horne was brought on by the West Virginia Development Office (WVDO) to create the state's Action Plan for managing the disaster recovery grant funds. Initially, the contract agreed with the state provided $900,000 in compensation. However, additional task orders without competitive bidding inflated the project’s cost to over $18,000,000. This situation eventually handed the firm control over the rebranded "Rise West Virginia Housing Restoration Program" (RISE).
Upon contract review in late 2017, the West Virginia administration deemed the additional work orders illegal, leading to the non-payment for services linked to those orders. Horne then put forward an invoice totaling $6,739,575 to reflect the purported value of their previous services, which was paid from federal CDBG-DR funds. Investigations later revealed billing issues, including fabricated consultations and property inspections that were unnecessary or not conducted by Horne.
The settlement is a consequence of what Acting United States Attorney Lisa G. Johnston described as the firm taking "advantage of the situation" in which "thousands of West Virginians remained in need." She credited the settlement to the collaborative efforts of HUD-OIG, the West Virginia Commission on Special Investigations, along with her office’s specialists.
Shawn Rice, Special Agent-in-Charge with the HUD Office of Inspector General, remarked that Horne’s alleged actions contradicted HUD's recovery mission and removed essential resources from those most in need. He affirmed the OIG's commitment to accountability in federal programs.
The West Virginia Commission on Special Investigations launched an inquiry into flood assistance handling in December 2018. Director Rick Eplin noted that the investigation clarified discrepancies between Horne’s collected data and the actual conditions observed by investigators.
The resolution represents a significant development in the continued response to the disaster that impacted homes and communities across West Virginia.