Grier v. United States Department of Housing & Urban Development, 418 U.S. App. D.C. 185 (2015)

Citation: Grier v. United States Department of Housing & Urban Development, 418 U.S. App. D.C. 185 (2015)
Parent Document: Grier v. United States Department of Housing & Urban Development, 418 U.S. App. D.C. 185 (2015)
Jurisdiction: United States (federal)
Effective Date: 2015-07-14
Original Source: https://www.courtlistener.com/opinion/2816866/grier-v-united-states-departmen... ↗

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In January 2008, Grier requested that Firstrust, mortgagee
of the property, deposit $325,000 from Mantua Gardens’ reserve
account into an account at Wachovia Bank. The next month,
Grier formed Mantua Gardens East, LLC. Mantua Gardens
East, LLC, then secured a loan from Wachovia Bank, using the
$325,000 deposited in January as collateral. Grier, acting as
managing member of Mantua Gardens East, LLC, subsequently
used the loan to send a check to Firstrust “in full payment” of
the original mortgage. Apparently Grier believed that HUD
statutory and regulatory requirements no longer pertained to the
Mantua Project, and proceeded accordingly. Because of Grier’s
actions, HUD in its Complaint charged Grier and Mantua
Gardens with encumbering the rents of the property via the loan
with Wachovia; encumbering the project’s real property via the
same Wachovia loan; withdrawing money from the project’s
reserve fund without HUD’s permission; firing the project
manager without HUD’s approval; and failing to provide HUD
adequate financial disclosure reports for the project. The ALJ
found that Grier and Mantua Gardens committed these
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