CLEVELAND — Federal agents executed a search warrant Wednesday at the Waite Hill home of Frank Sinito, the CEO and founder of The Millennia Companies based in Cleveland.
According to the law firm Benesch Friedlander Coplan & Aronoff LLC, which represents Sinito, the raid was conducted by members of the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture.
"It is important to remember that an investigation is just that," stated a Benesch spokesperson in an email to 3News' Lynna Lai. "There have been no arrests and no charges filed."
The Millenia Companies owns hundreds of buildings and apartment complexes in several states, most notably the Key Center in downtown Cleveland.
"Millenia Housing Management and Mr. Sinito are cooperating with the investigation and have no further comment at this time," the Benesch spokesperson added.
Records show that in March of this year, HUD barred Sinito and Millenia Management from receiving new federal housing contracts for a period of five years following an investigation into improper conduct. The sanction was referred to as "debarment."
In a warning letter from HUD on Dec. 14, 2023, the agency accused Sinito of mismanaging tenant security deposits and taxpayer funds for housing assistance, as well as not properly maintaining properties. HUD cited nearly $4.9 million that was missing or improperly taken from 19 HUD-insured or HUD-subsidized properties.
According to HUD documents, Sinito owns and/or manages more than 200 multi-family housing properties around the country that are required to follow HUD regulations.
"Your misconduct affects the integrity of HUD's multifamily programs because it jeopardizes the financial viability of the projects," HUD's Departmental Enforcement Center wrote to Sinito. "The mismanagment of your properties risks the housing stability, and housing quality, of those tenant families. For these reasons, you are not presently responsible to enter into public agreements or transactions and are subject to debarment."
An attorney for Sinito could not confirm to 3News whether the raid is connected to the HUD debarment.