A Houston jury agreed with a former housing authority general counsel Karen Miniex, who claimed the agency retaliated against her after she pursued allegations of employee voucher fraud, and awarded her $1.87 million.

Voucher fraud

Reports state the $1.87 million covers back pay, front pay and past and future mental anguish for Karen Miniex, who served as the agency’s general counsel for four years. The suit was filed in the US District Court for the Southern District of Texas. Ms Miniex claimed she was fired from the agency in December 2016 for raising concerns of employee voucher fraud. The agency informed Ms Miniex she was terminated for unexcused absences, tardiness and decreased productivity. According to a statement from the agency, ‘Houston Housing Authority counsel is working to determine our next step. At this time, we are considering all available legal options including an appeal, if necessary. We appreciate the time and consideration given by the court and jury during our case.’

Pervasive fraud

In her complaint, Ms Miniex said she received a tip that an agency employee was selling Section 8 vouchers for profit in March 2016. The following month, another tip claimed an employee was selling Veterans Affairs Supportive Housing vouchers, which are reserved for homeless veterans. She instructed fraud investigator Ben Skalka to look into the claims. In June 2016, he informed her one employee had sold Veterans Affairs Supportive Housing vouchers to nonveterans for personal profit and that further investigation would likely unearth ‘additional, more pervasive acts of fraud.’ Ms Miniex informed the agency’s chief executive officer and president Tory Gunsolley, but her complaint alleges he dismissed her, saying, ‘well, it is not like we don’t have more vouchers than veterans anyway.’ Miniex claims Gunsolley continued to dismiss her reports of fraud and refused to take action against impacted department managers. She alleges she received further retaliation from leaders after raising the issue with the agency’s board. In December 2016, she was fired without first receiving a formal written warning or paid administrative leave, against policy.