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The U.S. Department of Housing and Urban Development has launched an investigation into the activities of one of its own employees, Cecilia Holloman, and her role in the Niagara Falls Faith-Based Collaborative, the Reporter has learned.
Holloman, whose duties as a HUD "community builder" here were curtailed greatly by her superiors last September, was relieved of all official duties on Jan. 8 of this year.
The investigation, being conducted by the HUD Office of Inspector General, first sprang from allegations contained in a lawsuit filed against Holloman and others associated with the Collaborative on Dec. 18, 2000, by county Legislator Renae Kimble, the Rev. William Spencer and the Rev. Joseph Jones.
Specifically, the suit alleges Holloman "made representations ... she would act as attorney for the Collaborative, and thereafter did engage in acts which constitute the acts of an attorney-at-law." Additionally, the suit claims Holloman and other defendants have withheld Collaborative financial records, raising questions about the group's handling of federal, state and local funding that has been made available to it since its formation in June 1999.
Holloman has vigorously denied the charges. In a lengthy Jan. 9 letter to Stephen Banko, her supervisor at the HUD Buffalo office, Holloman said that "none of the allegations made in the complaint are viable or factual." Acknowledging she is not licensed to practice law in New York State, she asserts she never attempted to do so. Practicing law without a license is a criminal offense.
"I am confident in stating that the allegations in the complaint are entirely false and misleading," Holloman wrote, later adding, "I did nothing wrong or illegal and should not in any way be punished for my work with this very positive and worthwhile effort."
Furthermore, Holloman made a formal request for representation by the U.S. Justice Department in the civil suit, claiming that the action against her centers on "alleged conduct in the scope of my employment."
While the Justice Department will provide representation for federal employees in such cases, it conducts its own investigation into whether the defendant actually was acting within the scope of his or her duties and whether it is in the interest of the United States to provide representation. Additionally, the Justice Department would begin such a process only if asked to do so by HUD.
Whether HUD officials will be inclined to recommend legal counsel be appointed for Holloman remains unclear. A Jan. 10 letter from Banko to Spencer apologizes for an earlier letter sent by Holloman on official HUD letterhead.
"On behalf of this Department and this office, I extend my sincere apologies for that letter," Banko wrote.
"(P)lease disregard any further communication from Ms. Holloman claiming to represent the interests of this Department in Niagara Falls," he added.
The Faith-Based Collaborative received $320,000 in Community Development Block Grant funding in 2000 and another $175,000 this year, but those funds remain frozen until it can be determined who actually is in control of the Collaborative and financial records are made available.