Bishop Harold Ray denies all claims regarding misused housing project funds

WEST PALM BEACH, Fla. - The bishop in the middle of million dollar fraud allegations from the city of West Palm Beach denied all claims by the city in a news conference at Redemptive Life Church Wednesday.

The city admitted Friday the old Housing and Community Development Department did not monitor the $1.6 million dollar low-income housing grant funds given to Redemptive Life Urban Initiative Corporation (RLUIC), which is Bishop Ray’s non-profit.

City officials say the non-profit made more than $2 million off of the sale of low-income homes in Coleman Park, but Bishop Ray said he didn’t make a dime.

The city’s audit is full of 21 different findings of wrongdoing, four concerns, and millions of dollars are under scrutiny.

"This has grown into a whirlwind, alleging stolen funds by me personally and/or through the operations of the (RLUIC) which we categorically and unequivocally deny," Bishop Ray said.

First, he denies the city of West Palm Beach’s accusations that he profited from the homes in Coleman Park.  In the audit, 22 companies are listed for getting a total of more than $2 million, but the city still needs to know what the money was used for.

Bishop Ray said they’re still providing documentation and working with the city to evaluate the claims, which Ray calls false and an injustice to his family name.

“It was not an investigation.  It was a collaboration,” Bishop Ray said. “We have been amicable, upfront, and forthright."

The city report also says there were double reimbursements made and no procurement records for 9 companies, which the city said they need.

In the city’s audit there are also reports that several board members have made more than $350,000 in salaries, which Bishop Ray and his lawyer Willie Gary denied.

Documents from the audit show that checks from the city to Ray’s non-profit, RLUIC, paid checks to Bishop Ray and Earl Hamilton.

The city says they weren't supposed to be paid, but Bishop Ray showed a document from the city back in 2005, saying they could retain grant funds and proceeds and the money didn’t have to be returned to the city.

“All grant funds may be retained by RLUIC do not have to returned to the city to be utilized for all other HOME (Investment Partnerships Program) purposes,” Bishop Ray read off the document. “That is now challenged by other city staff."

The city admits they were wrong by not monitoring over the past 8 years, but now say the money still needs to be returned.

The HUD inspector is now investigating the case and HUD is asking for $654,000 by January from the city.

Bishop Ray’s lawyer said Wednesday if accounting records showed money needed to be repaid to the city, then there’s no doubt that his client would pay it back, but he believes the city will find maybe Ray should be paid money.