Ex-HUD Employee Sentenced in Crackdown

A former single-family housing specialist in HUD’s Los Angeles office was sentenced to two years in federal prison and ordered to pay $1.4 million in restitution to the department of Housing and Urban Development, according to agency officials. Karen Christiansen was sentenced after being charged with taking $80,300 in bribes and a Ferrari from a real estate broker. In return, Christiansen sold the broker about $2.1 million worth of HUD properties for about $700,000, prosecutors said. Christiansen was one of about 40 people--ranging from mortgage brokers to escrow agents--in Southern California who were charged late last year in connection with a nationwide investigation of fraudulent, federally insured mortgages. About 10 individuals have been sentenced so far and the remainder are still being processed, HUD said.