Fitzpatrick Morosco, Rigging Inspection Process, Massachusetts 2015

BOSTON – A former executive of the Chelsea Housing Authority (CHA) and a former public housing inspector were convicted on Wednesday, April 1, 2015, for their roles in rigging the inspection process of federally funded housing units.

James Fitzpatrick, 63, of Acton, Mass., and Bernard Morosco, 50, of Utica, NY, were convicted of conspiring to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) by impairing, impeding, and defeating the proper operation of HUD’s physical condition assessment.

Pursuant to federal regulations, to determine whether a public housing authority is meeting the standard for its residents of conditions that are “decent, safe, sanitary, and in good repair,” HUD’s Real Estate Assessment Center (REAC) is required to “provide for an independent physical inspection of a public housing authority’s property or properties that includes, at a minimum, a statistically valid sample of the units in the CHA’s public housing portfolio to determine the extent of compliance with the standard.”

Before the REAC inspections of the CHA in 2007, 2009, and 2011, Morosco gave Fitzpatrick, the Assistant Director of the CHA, an advance list that revealed which units at the CHA would be inspected.

One or two months before each REAC inspection, using information provided by Fitzpatrick, Morosco accessed HUD’s secure database and downloaded information to which he was not entitled. That information enabled him to use his REAC software to generate, in advance, the random sample that would later be generated by the assigned REAC inspector.

McLaughlin divided CHA employees into pairs, calling each pair a SWAT team, and sent them to inspect the units identified by Morosco. For the month before each inspection, the SWAT teams visited several apartments a day, inspecting and re-inspecting them as maintenance crews visited the units to make repairs, fumigate, and exterminate.

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