Sandra Morgan, Randy Walters

Waukesha, WI: (May-15-07) The city filed charges against Sandra Morgan, a homeowner and Randy Walters, a construction contractor, who are brother and sister, over a case where federal funds were used to recondition a home. The issue stemmed from a settlement agreement in a lawsuit in which the city released $135,000 in federal funds to recondition a home worth only $128,000. The federal funds were administered by the city's Department of Community Development, which released the money without first obtaining collateral from Morgan in debt notes against the home. Following that, the city tried to collect $100,000 that it claims had unjustly enriched Morgan and Walters. In a settlement reached with Morgan, she is expected to pay back $60,000 through secured notes to the city against her home, payable when the home is sold, along with 3% interest. Morgan now has an additional $35,000 in secured notes with the city. Greystone Builders Inc., owned by Walters, who performed the work, will pay back $10,000 over a three-year period at 5% interest. [JS ONLINE: RECONDITIONED HOME]

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Published on May-18-07