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August 14, 2014

Lewiston agrees to federal settlement over loan fraud

The city of Lewiston has agreed to pay two federal agencies over fraudulent loans that were made to a developer several years ago for apartment renovations.

The Associated Press reported that the Lewiston City Council voted unanimously to pay $140,000 to the federal Housing and Urban Development Department and $40,000 to the Department of Justice for penalties relating to the fraudulent loans.

Developer Travis Soule received $200,000 in HUD loans from the city in 2007 and 2008 for apartment renovation work, but, as the city learned in 2008, much of the work was never completed. Soule has served prison time on charges of fraud and embezzlement.

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