Feds target Mt. Vernon agency over missing money

Federal agents have targeted Mount Vernon Mayor Ernie Davis? administration as part of a probe into missing money.

The U.S. Attorney?s Office wants to know what happened to approximately $2 million in unaccounted funds that went through the city's troubled Urban Renewal Agency. Davis admits the Urban Renewal Agency was run very poorly, but he doesn?t think the missing money is the result of any wrongdoing. The mayor believes expenses due to overstaffing and overpayment of Section 8 rents are to blame.

It appears federal investigators think there may be more behind the missing $2 million. Two subpoenas demanding records from the Urban Renewal Agency and the planning department that oversees it were served to the city on May 10 and May 23. The subpoenas order all the release of information about city contracts involving two companies and city files related to dealings with one of those companies. It also orders the release of financial disclosure statements from all city agencies commissioners.

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