BEFORE THE DIRECTOR -
[Cached Version]
Published on: 10/22/2001
Last Visited: 7/21/2002
Letters were dispatched to Milton Bailey, former Director of DHCD; Dena Reed, Chief of the Office of the Corporation Counsel's Economic Development Section's Commercial Division and counsel to the DHCD Director; Jerry L. Williamson, Chief of the Development Finance Division at DHCD; and George Dines, DHCD Comptroller and member of the DHCD Loan Committee, asking for additional or any information they may have concerning this matter, no later than November 20, 2001; because, in conjunction with their DHCD positions, the latter three (3) served as co-members of the DHCD Loan Committee with Mr. Drobenare.
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Mr. Williamson submitted his response on November 21, 2001.
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On January 11, 2002, OCF issued notices of hearings to Neal Drobenare, Jerry Williamson, Zoreana Barnes, Milton Bailey, Leith Wain, and Nicholas P. Sussillo, who first suspected the alleged conflict or apparent conflict of interest by Mr. Drobenare.
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Mr. Williamson and Mr. Sussillo appeared on January 18, 2002; Ms. Barnes and Mr. Bailey also appeared on January 18, 2002, accompanied by Harry T. Alexander, Esq., General Counsel to HFA.
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Second, Mr. Jackson relies upon the testimony given by Jerry Williamson, Chief of the DCHD Development Finance Division, on January 18, 2002.
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Mr. Williamson described a loan process distinctively different for Leith Wain's projects.He stated that Mr. Drobenare, contrary to the regular process where a project is sent directly to the DHCD Director or to him, as Deputy Director solicited Leith Wain's Huntwood Apartments project.Attachment J at 13-14.Mr. Williamson said that ". . .it's important to understand that the nature of the business [of DHCD] and the responsibility that [he has] is that there should be an arms length transactional experience with the developers, because [they] control a lot of money and the access to those funds."Id. at 18.Mr. Williamson continued that ". . .the public confidence would be jeopardized and compromised by any close relationship that is not disclosed by persons holding that kind of power."Id.He said that "Mr.
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In August 2001, Sussillo reported to Jerry Williamson and Dena Reed that Drobenare and Lita Wain were social friends and the possibility of a conflict or appearance of a conflict of interest by Drobenare because of his involvement on the Wain loan.