The Department of House and Urban Development sent a bulletin to its employees and contractors Tuesday, warning them of potential scams and dangerous confrontations involving anti-government extremists illegally occupying federal housing.
The alert, which came from HUD’s Office of Inspector General, alleged that sovereign citizens are increasingly taking advantage of state laws that aim to redistribute department-owned properties.
“The Federal Bureau of Investigation (FBI) and HUD OIG have noticed a resurgence of sovereign citizen fraud in HUD programs,” the IG said, stating that over the last four years, HUD has tallied 20 prosecutions and convictions related to sovereign citizens scams, recovering more than $17 million.
The report stated that sovereign citizens have been caught improperly deeding themselves HUD real estate, then changing the locks and installing alarm systems. It also stated that they’ve participated in subsidized section 8 housing programs and foreclosure rescue schemes, taking claim of property they do not own and masquerading as landlords to unsuspecting tenants.
“Unlike other ‘squatters,’ sovereign citizens may retaliate if you confront them,” the memo warned, adding that “engaging in verbal argument with these individuals could spiral into a violent confrontation.”
The alert noted that “sovereign citizen encounters with law enforcement and government personnel frequently become confrontational and sometimes turn violent,” referencing the groups’ involvement in the 1995 Oklahoma City bombing and the recent Bundy Ranch standoff in Nevada.
Employees and contractors are told how to recognize sovereign citizens, which often use “elaborate names and symbols,” including “names spelled in capital letters,” and “personal seals, stamps, or thump prints in red ink.”
The IG included an example of a fraudulent quit claim deed filed by a sovereign citizens that included “reference to silver dollars,” “reference to Organic Law of Georgia,” and the “use of a postage stamp in unneeded places.”
HUD staff and contractors were instructed in the bulletin to contact law enforcement “immediately” if they feel in danger during a confrontation with a sovereign citizen. And if fraud is suspected, employees are to report the individuals to the HUD inspector general.
For the most part, HUD staffers were told simply not to engage with these groups.
“Do not attempt to debate the sovereign citizen about ownership or your right to inspect as it would serve no purpose,” the IG stated.
